European Property Rights and Wrongs - Diana Wallis MEP
European Property Rights and Wrongs - Diana Wallis MEP
European Property Rights and Wrongs - Diana Wallis MEP
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not be readily accessible to be searched; for example the l<strong>and</strong> registry may not be<br />
available to search online or notices about issues affecting a property are posted<br />
for public view in accordance with the law but not sent direct to the owners’<br />
address, with the owners remaining in ignorance of the official procedure for<br />
posting notices.<br />
Preparation for local conditions of transactions: The Cyprus Title Deeds situation<br />
is now well known, however there is a backlog of foreign buyers still waiting<br />
for their title deeds who are currently exposed to massive risks as a result of<br />
not holding their deeds. Preparation <strong>and</strong> choice of legal advisor are key in this<br />
situation where local anomalies may result in an increased risk to the investment.<br />
Lack of legal certainty: this can arise from the inconsistent application of laws,<br />
for example the Ley De Costas (Coastal Law) in Spain was passed in 1988 at State<br />
level but not routinely or predictably enforced for many years <strong>and</strong> lay on the<br />
books to be enforced during 2008, leading to cases where legally built houses became<br />
viewed as non-legal. This can also arise from a legal services industry which<br />
may not offer the comprehensive service expected in other states, or which may<br />
not be transparent when acting for other parties in the transaction, for example<br />
also acting for a developer.<br />
Corruption or failed administration at local level: For example, in Andalucía<br />
300,000 houses were built in rural or protected areas on the edges of communities<br />
with “permits” from the town hall 9 , but were not authenticated by the<br />
regional junta government. The regional government then denied permission <strong>and</strong><br />
they are now classed as “illegal” houses. Investigations <strong>and</strong> prosecutions of developers<br />
<strong>and</strong> officials in Spain have uncovered cases of corruption <strong>and</strong> collusion to<br />
cash in on the building boom, where the town administration knew that permits<br />
could not be legally enforced, have not fulfilled the due process, or were deriving<br />
income from the issuing of the permits 10 .<br />
9 http://www.spanishpropertyinsight.com/buff/2010/06/29/<strong>and</strong>alucia-looks-to-turn-thepage-on-illegal-building/<br />
10 Various cases outlined in article “Corruption <strong>and</strong> urban planning in Spain” by Robert<br />
Tenison published in the Olive Press in 2009 www.roberttenison.com<br />
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