If you have placed a deposit on an off plan property in Spain that has not been completed, we can help you to recover your funds.
In recent years many people have found themselves in a situation where their dream holiday home or investment has turned into a nightmare.
Following the crash in the property market several years ago, many developers did not have the financial strength to continue trading.
This left a huge amount of property developments in Spain in various stages of construction. Those that suffered were the individual property buyers.
The law in Spain states that a Bank Guarantee must be issued to purchasers of off plan properties to cover the deposit and stage payments received.
The monies paid should be held in a separate account and the developers´ bank should issue a Bank Guarantee to cover all funds held.
In practice many purchasers do not receive this Bank Guarantee.
In the past the lack of a Bank Guarantee made it very difficult to obtain a refund of deposits in circumstances where the property was not built.
However, in December 2015 the Spanish Supreme Court ruled that the banks must share responsibility for payments made by buyers of off plan properties.
The court considered that the banks have a duty to ensure that the property developers comply with the law in relation to off plan property sales.
This judgement now means that the banks can be taken to court in order to retrieve the deposit regardless of the circumstances of the developer.
It is not necessary to first attempt to take action against the developer. Cases can proceed straight to court against the bank.
Does this mean that the banks are paying back the funds voluntarily?
The ruling does not mean the the banks are paying back the funds received upon request. The only way to ensure that the banks pay, is to proceed to court.
How long does the court process take?
As you can imagine it is quite a lengthy process. A realistic timescale is 18 – 24 months.
I paid an initial holding deposit in cash. Is this retrievable?
Unfortunately if you paid any amount in cash, it is not possible to pursue the bank. For example; many clients paid a holding deposit of €3,000 and then a large deposit by transfer once the purchase agreement was signed. In cases such as this you could claim for the deposit paid by transfer but not the cash payment.
Can I claim interest on the payment that I made?
Yes it is possible to claim interest on the deposit paid. We include a claim for interest as part of
The property I wanted to purchase was on a small development. Am I still able to proceed to court
against the bank?
Yes, you can pursue the bank for your funds regardless of the size of the project. There are a number of very large developments which never completed and these are well known. However, we have also helped people reclaim deposits on smaller housing projects by independent developers.
What documentation do you you require in order to proceed with my case?
The most important documents that are needed to proceed to court is the purchase contract and proof of the payments that you made.
These should be transfer receipts showing that the money left your account and the account to which the funds were sent.
If you were provided with a Bank Guarantee, this document is also needed. Depending upon your case, additional documentation may be required to support your claim.
Will I need to travel to Spain at any stage during proceedings?
In the majority of cases the client does not have to travel to Spain at any point prior to the court hearing nor attend the court hearing.
Once we are appointed, we draft a Power of Attorney. The document is drafted in two column format with Spanish in one column and an English translation in the other.
This document authorises us to represent you in court in Spain.
The Power of Attorney needs to be signed in front of a notary. As part of our service, we will help you locate a nearby notary and arrange an appointment.
What are the first steps in order to proceed?
The first step is to contact us. One of our English speaking lawyers will discuss your case and ask you to email your documentation for review.
Once we have everything required to take legal action against the bank, we will provide you with our Terms of Business.
Once appointed, we will draft the Power of Attorney and prepare the lawsuit and supporting documentation.
If you placed a deposit on an off plan property, please contact us today.
One of our experienced team of lawyers will contact you to discuss how we can help you retrieve your deposit funds.
These are some examples of development companies that went into Administration often without delivering the properties;
• Marbor, Galicia
• Carreira y Mtnz
• Rialca, Valladolid
• Construcciones Juanes
• In Tempo, Benidorm
• Gdsur Alicante
• Denia 76 Gestión Empresarial
• Consorcio Empresarial San Vicente Sur
• Vanguard Investment
• Mediterráneo y Vega Baja
• San José Inversiones y Proyectos Urbanísticos
• Inversol Grupo Urbanístico
• Imperium Urbanitas
• Huma Mediterráneo
• Trampolin Hills
Contact us today for a free consultation regarding any off plan property purchase in Spain.