Legal tip 317. More on restoring Balance: Banks responsabilities
Saturday, July 17, 2010 @ 2:13 PM
According to specialist economists, financial entities, which are these days the main owners of properties on sale these days, are the distorting element of the estate market: they set the prices as they act selectively in some areas in order to sell quickly and are just reducing prices for those units coming from repossessions. They are also committing again same errors as of the real estate boom years ( 100% financiación)
I can see why: Banks have been, by force of not honouring Bank Gurantees and also due to lack of claims against them which should be performed by consumers without Bank Guarantees, the only unharmed actor within the off plan real estate chain.
Privileged charges on properties, privileged positions in creditor´s meetings…. but most importantly, general avoidance-- due to lack of claims-- of their responsabilities established mainly in provision 1.2 of the 57/68: all these equal to the powerful position they have right now.
Things will start changing once Judges start passing decissions by which Banks are made liable of lack of Guarantees for off plan contracts. The correspondent claims need to be placed in Courts first, obviously.
A matter of BALANCE again, as we said yesterday.
Have a great Saturday!
Maria
Oldtown Tarifa by Roberto Carlos Pecino at Flickr.com