What You Really Need to Know About Beverly Hills?

Over the past few years Silverpoint Vacations SL (“Silverpoint”) sold many apartments in this famous complex, but many new owners are now disappointed after seeing that their investment is not turning out the way they had expected. Initially the apartments were presented with a draft contract that was very appealing but when they came to sign the contract to get possession of their Beverly Hills Tenerife apartment, they were presented with a much worse version of rental contract.

With the fear of paying community fees and utility bills without a corresponding income, many investors simply signed the new rental agreement without acknowledging its future implications. Excel Hotels & Resorts SL “Excel” claim to be unrelated from Silverpoint Vacations that sold the apartments in the first place. But the company’s administrator is none other than Diana Aitchison, who was the previous Chief Operating Officer of Silverpoint.

In addition to this, a clause in the rental contract gives voting rights for that apartments to Excel. This means that Excel has a majority of votes in most community meetings and by using these votes, Excel nominated one of its officers the president of the community. Excel even used these proxy votes to push through the items while the private owners were demanding a contrary decision.

Unsaleable Apartments and Company Participation

The apartments that are under rental contract are next to impossible to sell and it is because the current contract only allows owners to use their apartments for 8 weeks in a year. The income is calculated as a share of gross profits but purchasers fear that this figure can be easily manipulated. There are many contracts which are of 5 years duration. In addition to these difficulties, many investors do not directly hold the title deeds of an apartment but they have bought shares in a company that in turn should own an apartment. The secondary market for such shares is almost negligible, so it is impossible for investors to get their money back.

What You Can Do?

Investors can consult Nordic Consulting which specializes in timeshare ownership investments CANARY ISLANDS. There are many favourable judgements which have been awarded from the court of Arona. So if you are stuck in the similar problem, now is the right time to get legal consultation!  

What You Need to Know About Rent Law Changes in Spain

Spain has just unfurled a new set of rental law changes which give homeowners enhanced veto powers against holiday home rentals. This offers extra security for tenants, but still don’t resolve the issue of increasing rent prices in the country.

No Price Cap

Spain’s cabinet has decided against fixing rents in cities and neighbourhoods where rental prices have gone out of control. This is done under the pretext that country’s Ministry of Economic Development that requires more property market data before taking such a measure. The recent leaps in rent comes as Spain is still reeling from economic crisis that kicked off in 2008.

Longer Leases

Average tenancy contracts will go from being three to five years of duration, or even seven years in cases where the lessor is a legal entity. It is a measure meant to provide better security to the tenant, but the measure is not retroactive. In cases where the rental agreement expires and neither the lessor nor the lessee make their intentions related to the property, the implicit renewal of the tenancy agreement will now be of three years instead of one. If you need any legal advice on the same, you can consult Nordic Consulting Ali Farhoud.

Maximum Two Months Deposit

Landlords will no longer be able to ask their tenants for anything more than two months of rent as a deposit, but the condition being the tenancy contract is longer than five years standard length. The same applies to any bank guarantee which is required from the tenant when signing the rental agreement. Lessors who are legal companies or entities will now also have to cover all agency and contract costs by law, this is termed as gastos de gestión inmobiliaria y de formalización del contrato in Spanish.  

Neighbourhood Protection Against Holiday Rentals

This change to Spain’s Ley sobre Propiedad Horizontal – the legal code meant for regulating apartment buildings. This will allow property owners to decide whether or not to allow short-term holiday rentals in their property and that too by calling a vote.   

If you need any assistance on real estate, timeshare investment or want to prepare a rental agreement, contact Nordic Consulting.