Minister plans to give more security to foreign house buyers

The Minister for Development José Blanco announced last week that the government wants to give foreign buyers more security and confidence in buying property in Spain. In particular he has said that purchasers should not be prejudiced if they buy a property in good faith and later it is found to be illegal. His comments came after two days of meetings with representatives of the building and construction industry to discuss ways of reinvigorating the housing and construction sector currently in the doldrums. The minister added that he was proposing to visit those countries most likely to be purchasers of property in Spain and explain the safeguards that exist and that will exist under future reforms. The meetings also covered ways of strengthening the balance sheets of companies in the sector especially the accounting treatment of real estate assets.

The minister did not elaborate on what specifically any new legislation might consist of but did mention that a bill would be submitted to the council of ministers giving more certainty to buyers. Whether this security and comfort is enacted retrospectively to help those whose lives are in ruins currently, being involved in battles where they have bought properties in good faith and are being threatened with either heavy fines or demolition or both, remains to be seen.

The weak position that buyers have found themselves in either from unscrupulous developers and builders or from unjust and unreasonable land laws remains a major obstacle in encouraging future purchasers. Although many of the comments made relate specifically to foreign investors and buyers it must not be forgotten that there are many Spanish buyers who have found themselves in the position of having paid money and being left with half-finished properties, houses not started or with dwellings now declared as illegal. If the minister does nothing else during his tenure but resolve this situation he will have done well. He did say that a committee will be established with representatives from all interested sectors, finance, developers and the ministry to hold regular meetings starting on February the 2nd to find solutions to the current surplus housing problem and the lack of activity in the building and construction sector.

** EDITED due to distorted post **