A salesman at real estate chain Redpiso left a trail of victims in Rivas Vaciamadrid whose cases took years to resolve in court. The Madrid High Court of Justice (TSJM) has ordered the real estate chain and its local franchise to bear subsidiary liability for nine scams totalling almost €100,000, according to eldiario.es. The ruling upholds an earlier decision by the Provincial Court that had already ruled that both Redpiso Real Estate and Financial Group and Estudio Rivas Vaciamadrid SL must answer civilly for the fraud committed by their employee.

The scam of impossible discounts

The salesman's modus operandi was simple but devastating: he offered properties at spectacular discounts compared to their official price to quickly convince buyers. Once he had gained their trust, he charged them unauthorised deposits and commissions that should never have existed, sometimes falsifying contracts without the actual owners' knowledge.

One of the most blatant cases occurred in 2015: the salesman offered a villa valued at €450,000 for just €270,000. The victims paid €37,000 upfront, signed a contract and even moved into the property. The fraud came to light when the real owner returned from abroad and found the house occupied by strangers.

Forged contracts and fraudulent rentals

The salesman did not limit himself to collecting non-existent deposits. In several cases he even forged documents with the sellers' signatures—who in some cases were abroad—which allowed the fraudsters to collect subsequent rental payments from the victims. In one such operation, the buyers paid out €1,500 per month for 45 days on another property also marketed by the convicted man.

In another fraudulent transaction, he offered a property advertised at €600,000 for €230,000, managing to close the deal quickly. The sale allowed him to improperly appropriate €3,000 from the deposit that never reached its intended recipient.

Why the chain is responsible

Although the salesman was originally sentenced by the Provincial Court to one year and six months in prison for continued fraud and private document forgery, Redpiso and its franchise appealed. The TSJM rejected their arguments and confirmed their subsidiary liability after concluding that the defendant used all the paraphernalia of Redpiso to gain credibility: he presented documentation bearing the company's letterhead, wore distinctive signs of the chain, drove a branded vehicle and carried official folders.

For the victims, this corporate involvement is crucial: it is what allowed the fraud to flourish easily among buyers who trusted the reputation of a well-known real estate chain. The court understood it that way and ordered the company to respond when the convicted debtor cannot meet the compensation payments.

A ruling that confirms subsidiary liability

The total amount to be paid is €94,074 distributed among nine victims. The salesman, convicted years ago, did not appeal the initial sentence, but Redpiso and its franchise did in an attempt to escape liability. The TSJM found no grounds to exempt them and confirmed that they must respond on a subsidiary basis, that is, when the convicted party cannot pay.

This ruling closes a lengthy legal process dating back to 2015, when the first frauds began. After almost a decade of litigation, the victims now have judicial backing that allows them to claim from a company with assets, not just from an individual employee without means to pay.