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Lost Deposits in the Spanish Property Business Scam That Resulted From Corruption

More than 200 property buyers were victims of a scam that saw them become owners of illegal holiday homes. Investors in the Spanish property market, in around 2005, were duped into making down payments on property developments that were marketed to them fraudulently. Without the knowledge of those who had put down deposits, the construction of their holiday villas in the Spanish districts of Las Palomas, Pla Galán, Los Corrales, L’Hospitalet and Les Valletes had not been authorised by the relevant public authorities due to a network of corruption.

In fact, the plots of land supposedly earmarked for development were agricultural and the developments did not exist in land registries. As a result of corruption and criminal activity, some victims ended up with illegal properties that were not supplied with all the essential public services like water and electricity – or got no holiday home at all.

Buyers were lured by clever marketing including showrooms, convincing building models and the promise of properties adjacent to amenities including a golf course and a lake – neither of which were in fact included in the development project.

All of the above was possible due to a corrupt network involving politicians, businessmen and notaries as well as the “approval” of the project by the mayor at the time. The former mayor made the developments look legal, and even promoted the approval of a General Urban Development Plan for the area in July 2007.

In the end, not everyone got their Spanish home, nor did many of those that received their property get one corresponding to the terms of their contract. Many purchasers from the UK and Ireland were victims of this fraudulent activity and have never received their lost deposits back. Are you one of them?
There is a deadline of 7 October 2020 to make a claim. Contact MySpanishDeposit now.

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