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You are here: Home Housing Buying Illegal homes: The loophole to save expat buyers
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05/12/2006Illegal homes: The loophole to save expat buyers

Illegal homes: The loophole to save expat buyers Home owners whose properties were built illegally face losing their villas. But Expatica reports on a loophole which may save them from this fate.

Every expat's nightmare: The bulldozer goes to work

Yvonne and Jack Burditt bought their beach front apartment in Marbella three years ago, hoping to see out their retirement gazing out onto the Mediterranean.

Now the British couple, who are both in their 80s, face the threat of bulldozers ruining their dream.

The Burditt's three-bedroom apartment is among a number of homes on the Banana Beach development which faces being demolished as it is thought to have been built illegally.

The former Marbella city council, which was dissolved in March after a multi-million pound civic corruption scandal, granted permission for Banana Beach to be built.

But a police investigation is underway into whether bribes were paid by the property developers to unscrupulous council officials in order for building licences to be granted.

The homes in the Banana Beach development are among 30,000 in Marbella which are thought to be illegal and could face demolition.

 Mrs Burditt, 83, whose husband is a retired businessman, said: "It was a terrific shock when we heard on the radio that it could be demolished.

"We bought the place in good faith for over EUR 200,000. No-one knows what is going to happen. But we would have nowhere to go."

The Burditts are typical of thousands of worried Britons with properties in Spain who face the threat that all illegal properties will be knocked down regardless of whether they bought them in good faith.

Spain's new environmental prosecutor Antonio Vercher said an estimated 100,000 illegal homes exist in Spain.

In a crackdown on illegally built properties, Vercher says he will presume buyers knew they were illegal when they bought their properties and will knock down their homes.

H said: "I can't believe these people spent all this money and did not know these houses were illegal.

"Most have benefited from lower prices because they were illegal. We will have to knock them down."

He said despite language and cultural barriers, foreigners looking for a villa in Spain could all have done routine checks by looking at the local property register which would have revealed if their home was legal or not. 

The register would show if the house had been properly registered with the authorities.
Vercher said: "It is obvious that when you buy you have to go to the register.

"I find it astonishing that people could spend so much money without checking."
Homes which are illegal had usually had licences handed out not in the proper way by corrupt or simply inefficient town planning officials.

Unfortunately for home buyers in Spain, the problem of corruption linked to the country's booming building industry is not confined to the Costa del Sol.

The Spanish investigative magazine Interviu  recently  published a 'corruption map' of the country showing examples of similar scandals in the Basque Country in the north-west, in the western region of Galicia and in the Canary and Balearic Islands.

But there may be a legal loophole which will save expat homeowners from seeing their dream homes reduced to rubble.

Experts said courts would have to consider if any owners whose holiday or retirement homes are threatened bought them in good faith or not.

Manuel Martín, dean of the College of Registrars for Property in Western Andalusia, said homeowners are protected under Spanish law by the "principle of public faith in the registry".

He added: "This ensures that those who purchased homes in the belief that the information supplied to them by officials was correct must be allowed to keep ownership."
If in the worst case scenario, a court ruled the owner had not acted in good faith, their properties could then be demolished.

But they would still have one other option even if it might offer scant compensation;  they could take sellers or builders to court using civil law to claim indemnification.

The campaign to crack down on illegal building comes amid mounting public outrage in Spain from residents groups, ecological groups and mainstream political parties about the building fraud which is putting many British buyers off.

Mark Stucklin, Expatica's resident property expert who runs the website www.spanishpropertyinsight.com, said: "These stories about illegal homes are definitely making people wary. They are reading the stories and thinking twice about buying in Spain."

[Copyright Expatica]

[December 2006]

Subject: Spain; illegal building

 

 



3 reactions to this article

Guy Marrison posted: 2008-12-02 20:33:57

As an expert on Marbella Property I have two comments on this article that may be of use to those affected:
1. The quote attributed to the environmental prosecutor is astounding. The property register only details the existence of the property and not its legality. That is documented in the building and project licenses and then by a licence of first occupation once the development has been completed.
Buyers should get this information from their lawyers.
2. The 'good faith' argument is often mentioned but is not useful. If a property is built in a green zone it must be demolished - this is no protection unless the area is re-zoned. This would apply to Banana Beach.
For more information on the new Marbella Town Plan and illegal building in Marbella go to my blog at http://www.marrisonproperties.com/.
I update it regularly with news on house prices, where to buy and why and information on the new town plan.

Kind regards,

Guy Marrison
Marrison Properties
www.marrisonproperties.com

BOB DUNFORD posted: 2010-06-08 13:08:23

when you buy a property in spain you pay a solicitor.to check if their is anything wrong with the property.thenotary also checks if their is any thing wrong.before signing and stamping the deeds.the land registry.checkes if the biulding has been registered.and approved.before you sign to buy.so if the solicitor.does not tel you.and signs the deeds he is approving of the sale,( so nothing should be wrong) if the noary sign and stamps the deeds he or she is approving.so all should be right .nothing illegal.if the land registry sign the deeds the house was registered on building,so after all this and the house is found illegal the solicitor.notary land registry should all lose their credit and not allowed to work in this position again.so what is going wrong with the law in spain.it is not the buyers fault that the solicitor notary land registry was a sleep when signing.the buyer should recieve all his money back,with compansation.now some where or some one must look into this,or its called abusive law.not allowed any where.

marian green posted: 2012-01-19 12:27:55

I bought my house on rustica land through an estate agent in 2007.I checked the the solicitor dealt with rustica property on rustica land and said i didnt want to buy an illegal property. they assured me they wouldn't let me sign a contract unless legal. They assured me all ok and helped arrange a mortgage. They took my deposit in a client account and arranged time and date at notary telling me to go to bank first and pay all monies due to bank and builder and take their fees with me to notary which I did. They were late at notary which was very busy and told me they were not going to charge me because they did not understand the land laws in Andalusia and did not want me to sued them if in ten years tine the town hall wanted to build a road through my property (in the mountains) they had me sign to say i understood the property was on rustica land (this had been clear from the beginning). I understood the land had been registered in my name at the lad registry. Due to personal circumstances I had to try and sell the property when I found out the certificate of antiquity was false, there had never been a license to build and it had been built on a protected zone. the town hall would not put this in writing - as far as they were concerned it didnt exist. if they put it in writing they would have to take action. Since then I have been trying to get legal advice no one wants to know. I can no longer pay my mortgage due to personal change in circumstances and the bank wont take the house back. Having put all my money into the house I now have nothing left to fight it with and my health is declining as a result of the worry. The solicitor who originally dealt with the purchase told me to hand the keys back and disappear, at my age i should just go and have a nice life! Does anyone have any advice as to where i can go for help please.

3 reactions to this article

Guy Marrison posted: 2008-12-02 20:33:57

As an expert on Marbella Property I have two comments on this article that may be of use to those affected:
1. The quote attributed to the environmental prosecutor is astounding. The property register only details the existence of the property and not its legality. That is documented in the building and project licenses and then by a licence of first occupation once the development has been completed.
Buyers should get this information from their lawyers.
2. The 'good faith' argument is often mentioned but is not useful. If a property is built in a green zone it must be demolished - this is no protection unless the area is re-zoned. This would apply to Banana Beach.
For more information on the new Marbella Town Plan and illegal building in Marbella go to my blog at http://www.marrisonproperties.com/.
I update it regularly with news on house prices, where to buy and why and information on the new town plan.

Kind regards,

Guy Marrison
Marrison Properties
www.marrisonproperties.com

BOB DUNFORD posted: 2010-06-08 13:08:23

when you buy a property in spain you pay a solicitor.to check if their is anything wrong with the property.thenotary also checks if their is any thing wrong.before signing and stamping the deeds.the land registry.checkes if the biulding has been registered.and approved.before you sign to buy.so if the solicitor.does not tel you.and signs the deeds he is approving of the sale,( so nothing should be wrong) if the noary sign and stamps the deeds he or she is approving.so all should be right .nothing illegal.if the land registry sign the deeds the house was registered on building,so after all this and the house is found illegal the solicitor.notary land registry should all lose their credit and not allowed to work in this position again.so what is going wrong with the law in spain.it is not the buyers fault that the solicitor notary land registry was a sleep when signing.the buyer should recieve all his money back,with compansation.now some where or some one must look into this,or its called abusive law.not allowed any where.

marian green posted: 2012-01-19 12:27:55

I bought my house on rustica land through an estate agent in 2007.I checked the the solicitor dealt with rustica property on rustica land and said i didnt want to buy an illegal property. they assured me they wouldn't let me sign a contract unless legal. They assured me all ok and helped arrange a mortgage. They took my deposit in a client account and arranged time and date at notary telling me to go to bank first and pay all monies due to bank and builder and take their fees with me to notary which I did. They were late at notary which was very busy and told me they were not going to charge me because they did not understand the land laws in Andalusia and did not want me to sued them if in ten years tine the town hall wanted to build a road through my property (in the mountains) they had me sign to say i understood the property was on rustica land (this had been clear from the beginning). I understood the land had been registered in my name at the lad registry. Due to personal circumstances I had to try and sell the property when I found out the certificate of antiquity was false, there had never been a license to build and it had been built on a protected zone. the town hall would not put this in writing - as far as they were concerned it didnt exist. if they put it in writing they would have to take action. Since then I have been trying to get legal advice no one wants to know. I can no longer pay my mortgage due to personal change in circumstances and the bank wont take the house back. Having put all my money into the house I now have nothing left to fight it with and my health is declining as a result of the worry. The solicitor who originally dealt with the purchase told me to hand the keys back and disappear, at my age i should just go and have a nice life! Does anyone have any advice as to where i can go for help please.

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