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Did you lose money on an unfinished off-plan property in Spain? If so, a legal remedy may be available…

June 29, 2015 0 Comments

About Carmen

Carmen is a highly experienced lawyer and leads a multi-disciplinary law practice with offices across Murcia. Expert legal advice is offered in all major areas of the law including property law, contract breach/debt recovery, family law and inheritances as well as business formation and taxation.

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Those who bought an ‘off-plan’ property in Spain but did not in fact ever receive the completed property may after all have a legal remedy and obtain the return of any money paid as a deposit.

Article 1 of Law 57/1968 regarding the receipt of advanced payments towards the construction and sale of residential property, clearly establishes the legal responsibility assumed by financial institutions in whose accounts the advance payments are lodged, where the said financial institutions failed to insist on an insurance guarantee or a deposit by the developer.

This legislation obliges the financial institution, typically a bank,  to insist, at the time of the opening of the account, on verification that there is a deposit lodged by the construction company or alternatively insurance to cover any potential loss. If the bank fails to do so or if it proceeds to open the account knowing that such a deposit does not exist, the bank is liable for any financial loss suffered by the account holder ie the property investor who would have been the beneficiary of such insurance or deposit.

Accordingly, if the property investor is unable to exercise their rights to receive the return of their money for failure to deliver the property as ordered, by virtue of the failure to have an insurance policy as required by law, then the bank in which the property investor’s money was held must rectify the loss.

On this basis, if you bought an ‘off-plan’ property, and the property developer never completed the property, then if the developer has not returned to you the deposit monies that you paid over to the developer  or if you have won a court case against the developer already, but received nothing due to the developer’s insolvency, then you may be able to claim against the bank in which the deposit monies were held.

We are assisting a number of client’s with similar claims, so let us know if you are in this situation and we shall review the matter to determine if you could make a successful claim.

If you think you may require assistance with this issue in Murcia Province please contact Carmen using the contact form below, or telephone  +34 958 049 381 . For legal assistance in other areas of Spain, please visit the lawyer locator page.

 

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