Is it illegal to sell off plan property with no guarantees?

Can anyone help?

Is it illegal to sell off plan property without a bank or insurance guarantee from a company recognised by the bank of Spain?

Some people say it is but the developer say´s it´s not and is using a company no one can find anything about as the guarantee.

Regards Shaggi

Shaggi, it IS illegal ! Maria, our lawyer on EOS, has said this time & time again. Spanish law dictates that builders give you a Bank Guarantee if you buy off plan & pay stage payments. The BG protects your payments.

I also was reading a very good thread HERE about Bank Guarantees not supposed to have expiry dates.

By the way, Shaggi, this FORUM HELP is for members to ask EOS about our PMs not working & such, not for your question. Will you do me a favour & repost in Bank guarantees & I'll pop in there & post my answer too. Keeping it in correct board helps others to locate things they may also find useful, ok ? Thanks.



This message was last edited by morerosado on 2/13/2008.

Thanks for reply. The developer is now saying that he would put the money into a ringfenced bank account until the structure is built when he would then be able to access it to finish the property. He says this is normal practice and that no one guarantees payments until keys are handed over at the notary. Does anyone know any different? It seems my money would not be guaranteed after this point so if they went bust i don´t know how i would get my money back?

Shaggi, it's ILLEGAL !! Where's your lawyer ??? He should be safeguarding you against the builder.

If you want more advice & confirmation of this, contact Maria de Castro, EOS lawyer.

This message was last edited by morerosado on 2/13/2008.

The developer is certainly acting illegaly here.  By law all off plans need to have a bank guarantee.  If he won't give you one then just walk away, don't risk it.

Justin

Shaggi, you asked Does anyone know any different? As we have said ...  it's illegal.

Have you committed to a property yet ?

If you haven't, walk away. (As Justin said)  

If you have you really need to take this up with your lawyer.

Hello!!

I am planning to move to South Alicante or Murcia, I have seen some properties, but i really need a lawyer in this area, can anybody recomend any?

 

Thanks a lot