European Property Rights and Wrongs - Diana Wallis MEP

not be readily accessible to be searched; for example the land registry may not be
available to search online or notices about issues affecting a property are posted
for public view in accordance with the law but not sent direct to the owners’
address, with the owners remaining in ignorance of the official procedure for
posting notices.
Preparation for local conditions of transactions: The Cyprus Title Deeds situation
is now well known, however there is a backlog of foreign buyers still waiting
for their title deeds who are currently exposed to massive risks as a result of
not holding their deeds. Preparation and choice of legal advisor are key in this
situation where local anomalies may result in an increased risk to the investment.
Lack of legal certainty: this can arise from the inconsistent application of laws,
for example the Ley De Costas (Coastal Law) in Spain was passed in 1988 at State
level but not routinely or predictably enforced for many years and lay on the
books to be enforced during 2008, leading to cases where legally built houses became
viewed as non-legal. This can also arise from a legal services industry which
may not offer the comprehensive service expected in other states, or which may
not be transparent when acting for other parties in the transaction, for example
also acting for a developer.
Corruption or failed administration at local level: For example, in Andalucía
300,000 houses were built in rural or protected areas on the edges of communities
with “permits” from the town hall 9 , but were not authenticated by the
regional junta government. The regional government then denied permission and
they are now classed as “illegal” houses. Investigations and prosecutions of developers
and officials in Spain have uncovered cases of corruption and collusion to
cash in on the building boom, where the town administration knew that permits
could not be legally enforced, have not fulfilled the due process, or were deriving
income from the issuing of the permits 10 .
9 http://www.spanishpropertyinsight.com/buff/2010/06/29/andalucia-looks-to-turn-thepage-on-illegal-building/
10 Various cases outlined in article “Corruption and urban planning in Spain” by Robert
Tenison published in the Olive Press in 2009 www.roberttenison.com
15