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Spanish Off-Plan Property - Bank Guarantees - LEY 57/68

This blog is for all those Off-Plan property purchasers in Spain who have not received Bank Guarantees for their deposit funds as required by Spanish Law, in particular LEY 57/68 Article 1.1 and 1.2 and are now at risk of losing their money.

In addition many purchasers who did receive Bank Guarantees are now finding that the Spanish Banks are refusing to honour them without legal action being taken by the purchaser.

MARIANO RAJOY - PROPOSALS FOR CHANGE
25 November 2011

Many purchasers have been robbed of the chance to enjoy everything Spain has to offer. For many it is just a dream as their money has been 'stolen' by the corrupt developers and negligent Banks. Many wonder if they will live to see the return of their money and have a second chance at experiencing the positive things Spain has to offer.

Spain is a fantastic country with friendly people. It is such a shame that the image of the country is tarnished so badly by the corruption and abuses in the property sector.

I sincerely hope that Sr. Mariano Rajoy and his new Government will realise that if they act quickly to resolve the Bank Guarantee issues then the result may well be a revitalised Spanish Property Market.

The problem at the moment is most prospective buyers have their money stuck in the system and until such time as it is refunded back to them in full they will not have any trust in the property market.

Now is the time to act Sr. Rajoy. Learn from the mistakes of Sr. Zapatero, Sra. Corredor and Sr. Blanco. Work immediately with us - the victims - and the Banco de España and together we can provide real and effective solutions to the Bank Guarantee Abuse that thousands are currently suffering. Only then will trust be regained and property buyers once again be tempted to invest in your wonderful country.

Keith
BANK GUARANTEES IN SPAIN ACTION GROUP


Below are some key points from the PP election manifesto. It is a 24 page document with 100 Proposals for Change. No mention of Bank Guarantee Abuse but let's see if they are true to their word on these related issues.

More society, better government

We know that it will not be easy and there are no short cuts. But we are prepared for the job and we have the enthusiasm, courage and capacity to make a right start and work towards the kind of Spain we all need.

We have to lay the foundations for a more competitive economy so that we can restore confidence and once more make Spain the best place to invest and create jobs.

The image and influence of our country abroad - We must restore our trustworthiness and credibility in the world.

Spain, competitive in the euro

 

We will develop a general plan to improve the image of Spain as a brand that will provide exporters and investors with the image of a country of excellence in all areas.

 

Credit to finance recovery

 

We will complete the provisioning and restructuring of the financial system. In doing so, we will provide assistance in the active management of impaired assets for financial institutions that require it. These assets will be placed on the market under criteria of transparency, market price and independent supervision.
 

Housing policy for growth and cohesion

 

We will reform the law on insolvency to introduce mechanisms freeing debtors after the enforcement of their assets that can be attached, with due guarantees, to prevent abusive behaviour.

 

Spain, a global tourism power

 

We will present a comprehensive plan for tourism, which values the industry as a priority. It will improve its tax treatment and develop policies that cut across all ministries involved in the sector. This will involve collaboration with the autonomous regions and the participation of the private sector.

We will boost the image of Spain as a quality tourist destination by modernising and improving the network of tourist offices in Spain and abroad. We will promote the holding of major cultural and sporting events in Spain. We will boost the Spain brand as a model of quality tourism.

 

Government: the motor for change

 

In the globalised world the quality of our legal system and the efficiency of our institutions make up a powerful factor affecting competitiveness. They must be an integral part in guiding our strategy for economic growth.

 

Austerity, transparency and responsibility in the administration of public resources must be the core principles behind all reforms.

 

The transformation that all levels of government are undergoing must aim for three clear objectives: more efficient provision of public services; more efficient participation by the private sector in the provision of these services; and greater answerability backed up by full transparency.

 

A modern state must guarantee values of certainty, legal security and legal trust.

 

Some principles must be fully accepted in regulations: realistic objectives and time horizons; properly defined competences; a reduction in discretionary awards; transparency in the decision-making processes; transparent regulatory dialogue between the authorities and interested parties; flexibility; adaptability; minimum intervention; and full respect for market mechanisms.

 

We need clear, precise, stable and easily applicable laws, regardless of their origin.

 

Using the advantages involved in political and administrative decentralisation requires the rigorous tackling of many of the problems which have so far been ignored.

 

Transparency

 

We will immediately approve a law on transparency, access to public information and good governance, in accordance with the principles inspiring the European Convention on Access to Official Documents.

The law will tackle transparency from a comprehensive perspective as the right of citizens and a basic principle for action by all the public administrations. It will guarantee in a balanced fashion the right to the protection of personal data against the safeguard of general interests.

 

Exemplary behaviour and transparency are essential in the activities of those who assume public responsibility, both at the personal and institutional level. The Popular Party is committed to promoting transparency, austerity and rigour and to fighting corruption in politics and in all public administrations.

 

A contradictory and excessive legal system dependent on arbitrary legal impulses is an insurmountable drag on the credit of a society.

We need a consistent legal framework with effective laws applied by institutions and bodies that guarantee qualification and transparency. A stable environment that inspires trust makes possible the best initiatives and most effective projects.

 

Flexible and consistent justice

 

We will change the model of the judicial system to make it effective, accessible and transparent for people involved in legal action, and ensure a unified management by all jurisdictional bodies. We will create an agency to organise a single computerised system that provides immediate online information on judicial matters and of those that are in public records related to the administration of justice.

 

We will strengthen the function of the Supreme Court as an appellate court for legal review.

 

The prestige of the Constitutional Court

 

We will modify the procedure for the election of judges to the Constitutional Court to prevent it from taking undue time.

 

We will re-establish the system of appeal on constitutional grounds prior to proceedings involving the reform of the autonomous regions’ charters. Appeals for the guarantee of fundamental rights will be limited to the ordinary courts and we will reserve the Constitutional Court for the exercise of its powers in cases of constitutional interest under law

 

European policy and influence abroad

 

We must recover our leading role abroad as a reliable, dependable and respected partner. The economic and institutional reforms we are going to undertake will contribute to international respect for Spain and its international role as an advanced Western democracy that is committed to freedom, democracy and the defence of human rights.



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SPANISH GOVERNMENT ROAD SHOW PHASE 2 - RESPONSE
25 November 2011

PRESS RELEASE

14 October 2011

ISSUED BY:
BANK GUARANTEES IN SPAIN ACTION GROUP
Highlighting Spanish Off-Plan Property Bank Guarantee Issues : Demanding Action
www.bankguaranteesinspain.com

SUBJECT: SPANISH GOVERNMENT PROPERTY ROAD SHOW
PHASE TWO – 13 OCTOBER 2011 – AT OPP LIVE – ExC
eL
LONDON DOCKLANDS

BEATRIZ CORREDOR – SPANISH SECRETARY OF STATE
FOR HOUSING DELIVERS KEY NOTE SEMINAR SPEECH
AND ATTEMPTS TO EXPLAIN WHY NOW IS THE RIGHT
TIME TO INVEST IN THE SPANISH REAL ESTATE MARKET.
HOWEVER SHE FAILS TO ACKNOWLEGE THAT ANY
PROBLEMS EXIST WITH PREVIOUS PURCHASERS

POST SEMINAR DRINKS RECEPTION MARRED DUE TO
ANGRY EXCHANGES BETWEEN VICTIMS OF SPANISH
PROPERTY ABUSE AND SPANISH SECRETARY OF
STATE BEATRIZ CORREDOR

MARTA ANDREASEN MEP HAS FRANK EXCHANGE WITH
BEATRIZ CORREDOR AT POST SEMINAR DRINKS
RECEPTION


BANK GUARANTEE ACTION GROUP ATTENDS FOLLOW
UP MEETING WITH SPANISH GOVERNMENT OFFICIALS
FROM THE HOUSING MINISTRY

BEATRIZ CORREDOR REFUSES TO MEET PERSONALLY
WITH THE BANK GUARANTEES ACTION GROUP

Phase 2 of the Spanish Government Property Road Show arrived in London
Docklands yesterday where the ‘main event’ was a 30 minute ‘key note’ speech
from Beatriz Corredor, Spain’s Housing Minister.

The Road Show, which was part of the Property & Investor Show OPP Live,
consisted of a Spanish Government stand in the centre of the exhibition hall
around which 12 Government approved companies were provided with individual
podiums to market their real estate portfolios.

Throughout the day the Spanish area was fairly quiet and there was not much
evidence of prospective purchasers for Spanish Property. However, a number of
victims of various Spanish Property Abuses did make the exhibitors aware of their
problems.

At one point in the early afternoon it seemed as though many of the Spanish Real
Estate exhibitors had gone for lunch as most of the podiums were empty.

KEY NOTE SPEECH

At 3:15pm Beatriz Corredor delivered her ‘key note’ speech in a small seminar
room screened off from the main exhibition hall. The audience of around 70
people was made up of trade guests, individual investors, Spanish Government
Embassy Officials and a number of victims of property abuse in Spain.

The audience was provided with copies of the Spanish Government publication
‘How to buy a home in Spain – Step by Step Guide’.

Beatriz Corredor was introduced by the Spanish Ambassador to the UK, Sr. Carles
Casajuana. He advised the audience that instead of a question and answer
session at the end of the seminar Beatriz Corredor would host a drinks reception
where the audience could enjoy some Spanish Wine.

Her speech lasted for around 30 minutes and she explained how this was now the
optimum time to invest in Spanish Property due to the falling property prices, IVA
reduction on new properties, Land Registry searches now available in English and
the transparency and legal security available to purchasers. Significantly the
Minister failed to acknowledge that there were any problems within the Spanish
real estate sector.

DRINKS RECEPTION & CHALLENGE FROM MARTA ANDREASEN MEP

At the end of the seminar the audience was then taken to the drinks reception
hosted by Beatriz Corredor and the Spanish Government.

The drinks reception was marred by some angry exchanges between Beatriz
Corredor and victims of Spanish Property Abuse. Sra. Corredor attempted to
defend the Spanish Real Estate Sector and together with the Spanish Ambassador
they denied there were any major problems.

Marta Andreasen MEP who had flown into London specially to attend the seminar
in support of the victims of property abuse also challenged Beatriz Corredor at
the drinks reception. http://www.martaandreasen.com/?p=1011

Marta Andreasen comments: “It didn’t take me long to introduce myself to
the Minister and have a conversation with her. I shall describe it as
‘frank and passionate’, with the conversation both in English and Spanish
attracting attention from many around.

During a recent interview with the BBC’s Sarah Rainsford, Beatriz Corredor said
“We insist that buying a house in Spain has always been safe”. When
pressed further on this issue she conceded,
“Those who have had problems
are on the path to a solution”
http://www.bbc.co.uk/news/world-europe-15293808



Keith challenges the statement from Beatriz Corredor: ”This statement is
completely untrue. If as the Minster says, buying a house in Spain has
always been safe, then why are so many people suffering from issues
such as Land Grab, Demolition Orders, Ley de Costas and Bank Guarantee
Abuse? I am shocked that she can continue to make such inflammatory
and insensitive statements. If we are now on a ‘path to a solution’ the
least we deserve is to be told just how long that path is.

Sra. Corredor must understand that now is the optimum time to meet
with the victims and put in place measures to resolve the serious issues
that are still outstanding as a result of the complete lack of supervision
in the Spanish Real Estate Sector.

If the Spanish Government and Banco de España really want us to
believe that the Spanish Real Estate Sector is transparent and offers
legal security then they must stop papering over the cracks and act now
to resolve the outstanding issues.

Now is not the time for Sales Seminars and Road Shows; it is time for
some real action from the Spanish Government and Banco de España.

We are sick of hearing about the transparency and legal security on offer,
because all we have experienced and are still experiencing is the
complete opposite – corruption, fraud, negligence and continual denial.

The Spanish Government must immediately clean up the property sector,
take action to resolve the property abuses, give more power to the Banco
de España to make them an effective supervisor of the Banks and ensure
that the Law relating to off-plan property purchases, LEY 57/68 is
enforced in all cases both past and present.

We have made it clear to the Spanish Government that we will not go
away and that will continue to fight to recover our money that should
have been protected by the inalienable rights granted to us by Spanish
Law, LEY 57/68”

Mike Kerr who was also present at the meeting comments: “I was disappointed
that I was not allowed to speak directly to Beatriz Corredor. As I
approached her she turned her back on me and walked away. We have
made the Spanish Government fully aware of the fraudulent actions of
the Spanish Banks but are surprised that they still refuse to intervene to
change their behaviour. By failing to take action it could be said that they
are condoning the fraudulent activity of the banks”

Mrs Corredor quite clearly lives on another planet. She refused to
acknowledge the problems there have been and continue to be with
people who have invested in Spain. Through her denial, she is unwilling
to help those who have suffered and I question whether she even cares
given there’s an election in Spain in a few weeks time”


REFUSAL BY MINISTER TO ATTEND MEETING

Keith Rule coordinator of the Finca Parcs Action Group and organizer of the Bank
Guarantees in Spain Petition says: “After listening to the Seminar from our front
row seats, it was obvious they did not want us anywhere near Beatriz
Corredor. Immediately the seminar ended myself and two other
representatives of the Bank Guarantees In Spain Petition, Mike Kerr and Reg
Matthews were taken for a pre-arranged meeting with two senior members
of Beatriz Corredor’s team.

We asked Beatriz Corredor to join the meeting but she refused. The meeting
which was a follow up to our first meeting held during the first phase of the
Road Show at the Spanish Embassy in May lasted for around 75 minutes and
at times became rather heated due to the serious nature of the subject
matter”

The meeting was arranged to discuss the wider issue of Bank Guarantee Abuse
including circumstances where developers and banks failed to issue the legally
required Bank Guarantees and where Banks were refusing to honour Bank
Guarantees for no legitimate legal reason.

COMPLAINT TO THE BANK OF SPAIN

Keith continues: “After reaching the end of the complaints procedure with Caja
de Ahorros del Mediterráneo (CAM) the Bank who accepted our off-plan
deposits at Finca Parcs we then forwarded our complaint to the Valencian
Savings Ombudsman who advised us that the complaint was ‘out of their
remit’ and then referred us to the Bank of Spain. We submitted our
complaint and dossier of evidence to the Banco de España on 12 October
2010. The complaint was not only in relation to the Finca Parcs/CAM
situation but it also criticized the Banco de España for their lack of
supervision with regards to the wider issue of Bank Guarantee Abuse.

The Banco de España notified us in writing on 3 January 2011 that they had
accepted our complaint into their system. We have not heard from them
since. We took this matter up with the Spanish Government at our meeting
in May and were now looking for some information on the progress of our
complaint. Unfortunately Beatriz Corredor’s team was unable to give us any
positive news.

Keith says: they told us: ‘Sra. Corredor has personally contacted the Governor
of the Bank of Spain but we are still waiting for an answer with regards to
your complaint. The Bank of Spain is independent and we as a Government
cannot tell them what to do. You must make a complaint to the Defensor del
Pueblo regarding the lack of response from the Bank of Spain. We will also
continue to chase them on your behalf’


Keith adds: ”We have now demanded a meeting with the Bank of Spain and
Beatriz Corredor’s team has assured us that although they are unable to
instruct the Bank of Spain to meet with us they will support us with our
request.

LAND REGISTRY SEARCHES – INNACURATE AND INCOMPLETE

At the meeting we also challenged many of the things said by Beatriz
Corredor during her 30 minute seminar.

We highlighted the fact that the information provided by the Spanish Land
Registry was inaccurate and we had with us copies of recent Land Registry
Searches for a property that was demolished in 2008, two other properties
that were issued with demolition notices in 2009 and a property that was
subject to Land Grab. The Land Registry searches did not make any
reference to these very serious issues.

The officials attempted to defend the Land Registry system which is all part
of their claim that the system now offers legal security and transparency by
saying that “The English translation system for the Land Registry was only
introduced in July this year and it would take a little time to be accurate.
They said ‘we have to start somewhere”
. We then gave them evidence of the
fact that the documents we were referring to were actually in Spanish from
the Spanish Land Registry search and not from the new English system.



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