Claim Back your Deposit in Spain

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In accordance with the Building Development Act which repealed Act 57/1968 of 27th July, on the receipt of deposit payments for the construction and sale of property developments (in force until 1st January 2016), the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.                                                                                                 Offices in Manchester-London-Malaga-Madrid

Offices in Manchester-London-Malaga-Madrid


The Laing O’Rourke-Interserve consortium has suddenly dropped out of the bidding for the first hospital to be built using the PF2 model.

The decision to withdraw from the race for the Midland Metropolitan Hospital leaves Carillion as the sole bidder some six months before last and final bids were due.

Sandwell & West Birmingham NHS Trust said that the procurement process would continue to the same timetable even though one firm was left to price the £350m, 670-bed hospital.

Construction of the new hospital is expected to start in 2016 and be completed by 2018-19.

The Midland Metropolitan Hospital will be located in Smethwick, close to the boundary between Sandwell and Birmingham on a derelict industrial estate in Grove Lane.

It is likely to be 8 storeys high with around 670 beds providing capacity for around 107,000 inpatients and 120,000 outpatients each year.

Balfour was originally picked as a shortlisted bidder but dropped out of the running several months before shortlisting to two preferred firms.

The decision to pull out comes after Laing O’Rourke last month signed financial close on a £200m deal to build a new hospital in Dumfries, being procured under the Scottish Government’s non profit distributing model.

The Trust said its expects that bidders will comply with BIM level 2, but would prefer that BIM level 3 is achieved.

David Lorenzo-Spanish Lawyer UK    

The Limited Liability Company (SRL or SL) in Spain

The Limited Liability Company (SRL or  SL) is the mostempresa-4-thumb widespread type of corporation in Spain.


Let’s see the main features of Limited Company:

  • Number of partners: at least one, with no maximum limit. In the case of a single partner is a limited partnership created proprietorship. They can be natural or legal persons.
  •  Liability of partners: joint between them and limited to the capital, so that the partners are not liable for the debts from their personal assets.
  •  Class members: be working partners and / or donors.
  • Name or Company Name: a name must be registered before anyone (for so you have to make the appropriate query in the Central Business Register) followed by the words Limited Liability Company or the abbreviation SRL or Limited Partnership or its respective abbreviation SL.
  • Capital: the legal minimum is € 3,000 fully paid, with no maximum limit. Contributions can be made by cash (money) or in kind, such as equipment, machinery or any other property, being necessary to have a valuation of the property accepted by all the founder members.
  • Division of social capital into shares, whose transmission has certain legal limitations, always telling the other shareholders preemptive rights against third parties.
  •  Address: is the direction in which the company is located, and shall be in Spain. A change of registered office within the same municipality may be approved by the Administrator but for a transfer of district support is needed in Board of Partners.
  • Purpose: is the activity or activities to which the company will be dedicated. Usually it’s prepared a relatively wide of activities with other potential initially planned to avoid following administrative costs if the company expands its  activities.
  •  Setting Up: by memorandum and articles signed before a Notary and subsequently filed with the Commercial Registry. It will be necessary to detail the contributions made by each partner and the percentage of capital that corresponds.

If you have any further questions, please don’t hesitate to contact me.

David Lorenzo-Spanish Lawyer UK                               





By David Lorenzo-Spanish Lawyer UK


The contract itself is a source (or can be) for many problems, both for its content and the execution. We will combine the performance of the contract, to the problems arising after the execution, and in this section we will focus on the actual conflict emerged contractual clauses. In most cases, it will be contracts by general conditions, also called adhesion contracts.

It is necessary to buy the flat to a professional (real estate agency, developer or the builder). When you buy the flat, the contract may be negotiated between the parties, or it may be a “contract of adhesion”, also named of “general conditions”. In the latter case, the consumer’s real capacity to influence the content of the contract is negligible, since the contract is drafted and imposed by the professional, but consumers can discuss their terms (except any particular, such as the payment, or similar).

In adhesion contracts concluded with consumers, applies the content control to the general standard terms to avoid the existence of unfair terms.

They are unfair, as provided in art. 82.1. TRLCU, “all those stipulations not individually negotiated and all those practices did not expressly agreed that, contrary to the requirement of good faith cause, to the detriment of the consumer, a significant imbalance in the rights and obligations of the parties under the contract.


The clause provided for in art. TRLCU 89.3 provides that in any case has considered abusive: “The consumer imposition of documentation and processing costs that relate to professional” .In particular, in the sale of homes:

a) The stipulation that the consumer has to bear the costs of preparing the certification that apply to the professional nature (new construction, condominiums, mortgages to finance their construction division and cancellation).

b) The provision requiring the consumer to be subrogated to the mortgage professional home or impose penalties in cases of non subrogation.

c) The provision imposing to the consumer tax payment in which the taxpayer is the professional.

d) The provision imposing  to the consumer the costs of establishing access to general supplies of housing, when it should be delivered in living conditions.

David Lorenzo-Spanish Lawyer UK


By David Lorenzo Spanish Lawyer UK

In this phase, problems can arise from two fronts: on the one hand, advertising, offering or promoting the sale of homes, and secondly, the information that is provided.

1.-THE ADVERTISINGfinanciera-7-thumb
The judgments existing in this field mainly focus on problems arising from the mismatch between advertising and housing made ​​subsequently delivered

First, we must take into account that is the same as the publicity is given by the seller, the developer, or builder, provided it is known by the consumer, and not be rectified prior to hiring.

Also it should be noted that the content of advertising may be required even if there has not been reflected in the contractual clauses. According to the Supreme Court: “These are documents that contain advertising activity, intended to attract customers constituting a clear offer, such advertising must integrate contracts, otherwise would have expressly excluded the advertising content.”

All advertising is now contractual, because their content may be required by the consumer, provided that there has been rectified, although not expressly stated in the contract or document or voucher received.

The mismatch between supply (or advertisements) and housing delivered may refer to any element of the building, and therefore it may be common elements such as particular. Moreover, the claim of the lack of correspondence between advertising and labor supply can be delivered both by defects of information, such as existence of construction defects or flaws in the work delivered.
It should be noted that in case of disagreement between offer or advertisement to the property delivered, the consumer must prove the existence of such question and do their part (pay the price) or at least be willing to comply (eg, by judicial appropriation price), because taking a sharp stance, of failing until all differences are settled sometimes can lead to be considered defaulting party (depending mainly on the degree of organization of these differences between the advertised or offered and the thing given)


The information is a basic right of consumers, and is of particular importance in this area, so it has been specifically regulated, establishing both the information that developers or builders are required to make available to the public (site plans housing, description, materials used), such as the buyer must provide the consumer (compliance with planning regulations, statutes and rules of operation of the homeowners, or information about the payment of taxes).

The information obligation is fulfilled in two stages:

Essentially in the pre-contractual stage by promoter statements or brochures, and contractual phase by providing the necessary documentation.

In the contractual phase of the first purchase of a home, the developer must provide the consumer “Book Building”, which consists of the project with the changes approved, the record of reception of the work, the link of the agents in the building, and the instructions for use and maintenance of the building and its facilities, which the buyer is obliged to preserve and transmit.

If the developer facilitates faulty information, there is no correspondence between advertising and housing delivered, and will be in breach of its contractual obligations.

David Lorenzo-Spanish Lawyer UK