Spanish Supreme Court ruling provides golden opportunity for investors to claim back the fortunes lost in the Spanish property crash, if this is your case we can help you, contact us and we will do it on a No Win No Fee basis.
Over the last 15 years, thousands of Brits bought into the Spanish dream of owning a holiday home in the sun. Unfortunately, the financial crisis of 2008 hit Spain’s property industry hard and many developers went bankrupt and disappeared overnight, leaving buildings un-started or unfinished and leaving buyers out-of-pocket and empty-handed.
The chances of claiming any money back from the developers was, at the time, virtually impossible, as buyers found themselves at the end of a very long line of creditors. The property developers should have secured the buyer’s deposits in accounts which were protected by bank guarantees, but the reality was that hardly any of them actually did this. UK buyers essentially had to kiss their investments goodbye. However, a landmark ruling issued by the Supreme Court in Madrid in December 2015 has set an exciting new precedent: any banks holding deposits for failed developers will now be obliged to repay those buyers
The Supreme Court has established that any Bank intervening in a building development is liable when the developer opened an account with the bank to receive the deposits paid by the buyers for these properties.
In accordance with the Building Development Act which repealed Act 57/1968 of 27th July, on the receipt of deposit payments for the construction and sale of property developments (in force until 1st January 2016), the developer was obliged by law to grant a bank guarantee or insurance policy to ensure the return of the deposits paid. However, few developers in Spain did this, and as a result, no guarantees or insurance covers were put in place to ensure the return of these monies.
The interpretation of the Supreme Court is that the obligation of the developer must also be the obligation of the bank where these deposits were paid in, and if they did not fulfil this obligation and the development was not completed or the property was not delivered to the buyer, then the Bank where these payments were made is liable. It is necessary, therefore, that in addition to the property not being delivered to the buyer, that the buyer paid the deposit into the relevant bank and that their deposit was not returned.
We have been already successful in recover large amounts for our clients from the Spanish banks.
The Act 42/2015 sets out 7th of October 2020 as the deadline to make a claim in respect of any amount put down as a deposit before 7th of October 2015. If you want for your action to be considered on time you should act quickly and take immediate steps to recover the amounts put down as a deposit.
Contact us, we will help you on a NO Win NO Fee agreement.
David Lorenzo – Dual qualified English solicitor and Spanish Lawyer Honorary Consul of Spain in Manchester and North Yorkshire. email@example.com Offices in Manchester-London-Malaga-Madrid
Offices in Manchester-London-Malaga-Madrid