Spanish development woes

A judge in Valencia has ordered a local Spanish developer to pay nearly 3 million Euro compensation to 49 clients over misleading marketing. The judgement could set a precedent for many foreign property investors who feel that they have been misled by Spanish developers.

The developer in question is Bautista Soler and the development is the Playa de la Patacone development which is situated in Alboraia, just north of Valencia on the coast. The marketing for the development, which was built and sold in the 1990s, promised ‘front-line beach quality of life and magnificent sea views.’ Unfortunately for many who bought properties on the development, the sea views have turned into a wall of concrete and cement as the same developer has now built a new development between them and the sea using exactly the same marketing to capture new investors.

The court decided that the developer knew that the marketing for his original development could end up being false and therefore ruled in favour of the buyers.

And it’s not just the Playa de la Patacone development which is facing the wrath of the law – the deadline for creditors to register their claims against failed developer Martinsa-Fadesa has been extended to October 25th. The major reason for the extension to the deadline is to allow foreign property investors, many of whom are based in the UK and Portugal, to fully come to grips with the situation and register their claims.

The issue over Martinsa-Fadesa is that many investors bought properties from the developer off-plan and made several payments, however they received nothing in return.

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