Commission urged to help foreign-property owners

Author (Person)
Series Title
Series Details 27.07.06
Publication Date 27/07/2006
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MEPs are pushing Markos Kyprianou, the European commissioner for consumer protection, to establish a body providing cross-border property buyers with legal advice.

They cite experiences of foreign buyers in Spain as evidence of the need for better information and protection.

Liberal MEP Sarah Ludford said: "What is the Commission doing to try to protect would be [cross-border] property-owners? We need a Euro info-point giving the lowdown on the pitfalls of buying property abroad."

The European Parliament, which several years ago received complaints from 15,000 consumers about a Valencian 'land grab' law (Ley Reguladora de la Actividad Urbanistica), has received backing from a consumer organisation in Alicante, Ciudadanos Europeos.

The European Commission launched a second legal challenge to the Spanish government in February this year after what it deemed an unsatisfactory reform of the law (renamed Ley Urbanistica Valenciana).

The original law, established in 1994 when the region was still largely under-developed, has allowed unscrupulous town halls and developers to claim back 10% of land bought by unsuspecting British, French and German consumers. To add insult to injury, consumers are then charged for the privilege of having amenities added.

One resident of Alicante, who faces a bill of 126,317 euro for a 12 metre-wide road that authorities have decided should run through her land, was only allowed to see plans this year after she had written to King Juan Carlos.

The Commission alleges that the new law continues to flout EU rules on individual property rights. But Spain's Socialist government may have trouble bringing to heel the Valencian authorities, which is run by the centre-right Partido Popular.

"The Spanish government has to justify in the eyes of the Commission what they are doing here. We are waiting for further information," said Oliver Drewes, spokesperson for the Commission.

MEPs are pushing Markos Kyprianou, the European commissioner for consumer protection, to establish a body providing cross-border property buyers with legal advice.

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