06 Nov 2025 11:58 AM:
Today’s Supreme Court ruling at a glance (notified 6 November 2025)
Spain’s Supreme Court has dismissed the bank’s appeal and confirmed full liability under a collective (blanket) guarantee in an off-plan case where buyers paid via the intermediary Ocean View—a well-known agent from the early-2000s boom, whose practices left hundreds of buyers claiming they lost their life savings—and never received individual guarantees. The outcome: 100% refund of deposits plus statutory interest, with costs. The Court reiterates the public-order nature of Law 57/1968 and shuts the door on defenses based on alleged “lack of control” over funds or the use of intermediaries.
Great signal for international investors in Spain—and for our CostaLuz–DeCastro teams: off-plan purchase security is reinforced. Spain’s Supreme Court has again made clear that banks and developers must treat with maximum seriousness every euro buyers pay on account.
The headline
When a collective (blanket) guarantee exists for a development, the guarantor bank must refund 100% of deposits plus statutory interest from each payment date—even if the buyer paid via an intermediary (e.g., Ocean View) or outside the guarantor bank’s accounts, and even where no individual guarantee certificates were issued.
Why this matters
- Safety consolidated: Spain remains among the safest markets globally for off-plan property investment.
- Public-order protection: Law 57/1968 ( now 20/2015) is imperative and protects buyers of first and second homes alike.
- No loopholes: Once (1) on-account payments and (2) non-delivery are proven, the guarantor pays in full—no “funds control” defense, no intermediary gap.
Two distinctive features clarified by the case law
- Intermediary structure (Ocean View). Having Ocean View between purchaser and developer—and being the guaranteed entity—does not weaken protection. Payments channelled via the intermediary still trigger guarantor liability when tied to the contract.
- Collective vs. individual guarantees. A valid collective guarantee fully covers buyers upon non-delivery even if no individual certificates were ever issued.
What this means for buyers
- Collective guarantees bite: Full refund + interest from each payment date.
- Intermediaries don’t break the chain: Payments via Ocean View or similar agents count if they align with the contract.
- No individual certificate? Still covered: The collective policy suffices when delivery fails.
What this means for banks and developers
Courts are reiterating strict compliance: arguments about lack of account control or third-party intermediaries won’t fly where a collective guarantee exists. Expect interest from each payment date and exposure to costs if you don’t comply.
Q&A: Fast answers for buyers
Q1. I never received an individual guarantee. Can I still claim?
Yes. A valid collective guarantee for the development is enough.
Q2. I paid through an agent (e.g., Ocean View), not into the guarantor bank. Is it covered?
Yes. If the payments correspond to your contract and you can evidence them, they qualify.
Q3. The bank says it never “controlled” my money. Does that block my claim?
No. Under a collective policy, liability follows the guarantee, not custody of funds.
Q4. What can I recover?
100% of deposits plus statutory legal interest from each deposit date. Courts often award costs.
Q5. The developer is insolvent—do I still have a route?
Yes. That is precisely why the guarantor stands in.
Q6. What documents should I gather now?
Your reservation/purchase contract, proof of payments (transfers, receipts), agent invoices/emails (e.g., Ocean View), and any guarantee wording referencing a collective policy.
Q7. Does Law 57/1968 protect both primary and holiday homes?
Yes. It is a public-order protection for first and second residences.
Q8. Some payments are hard to trace—am I stuck?
Not necessarily. We can often reconstruct the trail with secondary evidence (emails, bank statements, agent records).
Call to action
Want certainty now?
Send us your contract, payment proofs, and any guarantee documents (including mentions of a collective policy and dealings with Ocean View). We’ll review your contract and guarantees and give you a clear, actionable plan—what you can claim, how to proceed, and practical timing.
Contact us today for the review
This message was last edited by mariadecastro on 11/6/2025.
Thread:
Spain’s Supreme Court, once again, on the side of property investors
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