This is from todays OPP magazine website
Landmark ruling forces Spanish bank to refund deposit
A landmark ruling may have been made by a provincial court in Cantabria, northern Spain, this week when it found in favour of a buyer who paid a deposit on a property in Arce that was never built.
The purchaser was told that he had the legal right to demand a full refund from the bank, Caja Cantabria, that guaranteed the construction.
The bank was reminded of its responsibility under Spanish property law 57/1968 "to protect the funds paid by the buyer into a special account and ensure they are used solely for the purpose of building the property" and then promptly held to account for failing in its duty.
"This is an encouraging development for those affected in the Cantabria region, but it is too early to say whether it creates any kind of legal precedent for people in other parts of Spain" said the Spanish Embassy.
Charles Svoboda, vice president of the Valencian action group Abusos Urbanisticos - No (AUN) said: "while this is an improvement, and it does make me hopeful, it's important to remember that half of the Spanish banks are in financial trouble and many of the developers have gone out of business or simply disappeared - so where is this money going to come from to pay people back?"