To the Owners of Maspalomas Lago

Dear members of the owners' association,

Last Saturday, November 18, 2023, some of the owners in Maspalomas Lago have the PALT^[1] visited to discuss what to do next after the meeting on November 14th and the events that followed.

This is a document to explain the current delicate situation even to those who do not speak Spanish and who may not have previously participated directly in the process. Just this in advance: It is important to get involved now even if you are a non-Spanish-speaking owner, as this is about fundamental rights that are to be taken away from us as owners. At least this applies to everyone who does NOT want to hand over their property to a company that markets and rents said property.

What happened?

As a reminder, an extraordinary meeting was held on April 21, 2023, in which it was decided by a majority of 76.9913%, to maintain the USO RESIDENCIAL^[2] of the Maspalomas Lago complex and to inform Turismo that in our complex there is no tourism company (EXPLOTADORA^[3]). Since at no time has a contract been signed with Canary Sunset, nor has the hiring of an expotadora been approved in any minutes (as stated in the last meeting of November 14, 2023), once Turismo has been informed of these facts, the community will agree or not to renew the lease of the premises signed with Canary Sunset. This approval is subject to the condition that the company Canary Sunset presents its deregistration as an Explotadora to the Tourism Board and proves that it does not have a commercial contract with the Comunidad Maspalomas Lago, but only a rental contract in accordance with the Law on Urban Rental Contracts (LAU). To date, this deregistration as Explotadora of Canary Sunset has not been presented.

In addition, the president (Ramón) of our community received an envelope before the meeting on Saturday with a lawsuit of Canary Sunset against the Community Maspalomas Lago, in which we are accused of coercion. Canary Sunset argues that the requirement made at the last meeting that they must present their deregistration as Explotadora to Turismo if they want to continue the rental agreement for the reception is a coercion. They claim that they will suffer huge losses if they have to deregister as Explotadora.

After the conversation that took place last Saturday with the owners present and the members of the PALT, we have come to the following conclusions, which we want to share with you, the owners, (representing 76% of the members) and convene another extraordinary meeting. We must take decisive and forceful action to combat the presence of an EXPLOTADORA in the Maspalomas Lago complex.

What exactly is the problem?

As a reminder: Canary Sunset does not have the legally requiered number of units (51% or 62 units) under management; therefore, we should clarify that Canary Sunset fails to meet the requirements of the UNIDAD DE EXPLOTACIÓN^[4] (even if they appear in a NOTIFICACIÓN as the operator of the complex).

We also recall that at the meeting of April 21, 2023 it was agreed that one of the conditions for the extension of the rental agreement with Canary Sunset is that they deregister as the EXPLOTADORA of the complex. After waiting for this in vain for months, we think that the contractual relationship with Canary Sunset must be terminated as quickly as possible. In the current situation, fearing the loss of income that flows to the community from renting these spaces, we are hereby jeopardizing our goal of being a ZONA RESIDENCIAL. THE FIRST THING WE MUST DO IS TO TERMINATE THE CONTRACT WITH CANARY SUNSET IMMEDIATELY.

It is important to let all owners know that Canary Sunset's activities are harming us - the owners - and we must do everything we can to prevent this activity from continuing. These are the legal consequences of having an operator like Canary Sunset in the complex: our properties can no longer be used freely, not as long-term rental properties, not as tourism or residential properties, neither as a primary nor as a second home. Under applicable law and once Canary Sunset manages 51% of the units, we are subject to the decisions of Canary Sunset, which then has absolute control over our properties.

We must not forget that Canary Sunset is also an owner, just like us. Just as we take action against an owner for not paying the fees or not following the rules, we must also take action against Canary Sunset. Canary Sunset must submit to the decision of the majority.

The danger we face

The danger that Canary Sunset poses to us owners is immense. On the PALT website (Link) you will find information about the dangers we face due to the Tourism Act. Here is an excerpt from a text about the law in question:

"In the event that the rightful owner refuses to assign his property to the operating company (EXPLOTADORA), or refuses to pay the financial burden of the rehabilitation of the property or any other special contribution, or goes bankrupt if he has to bear them , legal proceedings will be initiated which will result in the replacement of the owner within one year."

The good news

It is important to know that the Campo Internacional is an Urbanization for which there are no legally approved compensation and urbanization projects, so that buildings are actually not allowed to be put into operation at all, as no classified activities can be carried out on land that does not have a first use permit. MASPALOMAS LAGO, HOWEVER, HAS SUCH A AUTORISAZIÒN DE PRIMERA OCUPACIÓN - FOR THE USO RESIDENCIAL.

What should be done now?

If we want to fight for the USO RESIDENCIAL in our facility we cannot extend the contract with Canary Sunset, as this contract itself states that we are not allowed to have EXPLOTADORA in the complex. The law requires that the EXPLOTADORA must obtain a permit (TITULO) from the owners to carry out its activity and use the common areas. However, Canary Sunset has not received such permits from the owners.

If during the new special meeting the majority approves the termination of the lease with Canary Sunset, we will go to court. Canary Sunset cannot represent itself as EXPLOTADORA nor can it obtain a valid license without meeting the requirement have half plus one unit under management. It is not legally possible for Canary Sunset to provide a DECLARACIÓN RESPONSABLE to carry out the activity if they do not have at least 51% (there are several court rulings confirming this). We have been too lenient in the past and allowed Canary Sunset to continue despite them violating the lease. We must now take urgent action, otherwise we could no longer be able to use our property freely. The law gives EXPLOTADORAs the right to use the bungalows for rental - whether we want it or not.

Therefore, we should inform Canary Sunset that we will file a lawsuit against them for making a non-legal DECLARACIÓN RESPONSABLE as operator, without the necessary licenses from the owners' meeting. To be clear, it is Canary Sunset that cannot act as operator because it violates current tourism regulations and urban planning regulations (UNIDAD DE EXPLOTACIÒN). They also violate the so-called LAW OF PROPIEDAD HORIZONTAL by carrying out an activity for which they have not received authorization from either the owners or the Community.

We must fight to ensure that what was conceived as USO RESIDENCIAL remains USO RESIDENCIAL and that we can use our property for residential purposes, long-term rentals or vacation activities as approved by the municipality. Especially now that we have more support, as the current municipal administration is on our side, we cannot allow an EXPLOTADORA in the facility.

The conclusion

All Owners should be aware of the following points communicated to us by the PALT:

• Owners who live in the complex and have also registered their primary residence there should declare this as their only residence (even if they acquired the property after 2017). Those who purchased their property before 2017 must remember that although they are currently exempt from this issue, this law only grants them residential rights for as long as they are owners. As soon as the property passes to another owner (sale, inheritance, donation), they lose these rights, even if they are the legal heirs of the current owners. And, of course, you will also suffer from the decisions of a legitimate EXPLOTADORA.
  
• Explain to those who voted to continue the lease at the last meeting that we have maneuvered ourselves into a complicated situation because it goes against our interests as owners. The presence of an operator violates our rights since we are forced to cede our property to the operator and allow him to carry out an activity that he is not allowed to carry out. Although this is not enshrined in the law, it is currently interpreted this way in the Canary Islands.
  
• We were informed that the PLAN PARCIAL CAMPO INTERNACIONAL DE MASPALOMAS is currently still in force. There is a regulation from 1989 that stipulates the expansion of Playa del Inglés and is transferred to Campo Internacional. It states that all plots classified for the construction of villas and bungalows are considered USO RESIDENCIAL, as this is their intended purpose. The plan specifies that Sector 3 (where our complex is located) is the main SECTOR RESIDENCIAL. This information is supported by official documents.
  
• There are currently no penalties against holiday homes (VV) in our complex. The notification that some of you have received is simply a notice that holiday homes are not allowed - a prohibition, which - by the way - violates a Supreme Court ruling.
  
• We are not against Canary Sunset in general, because as owners of 20 units they also have the right to rent out their properties, provided that the USO RESIDENCIAL is confirmed and the option for long-term rental and holiday homes is approved in the statutes of our COMUNIDAD. It is important that Canary Sunset understands that as owners we do not accept EXPLOTADORA as it is contrary to our interests. In the complaint received by the president of our community we are accused of coercion! This is the type of company we are dealing with at our complex and that is trying to profit from our property.

When will the next extraordinary meeting take place?

On 29 February 2024, there will be an extraordinary assembly to address this issue of great importance to all of us.

That's why we invite all comuneros to join, participate and fight for our right to the USO RESIDENCIAL to freely dispose of our homes. We will keep you updated as soon as we have news - because together we are stronger!