14 Aug 2008 5:56 PM:Hi there,
We are buyers at Cortijo del Mar. Our builders (Grupo Labaro) went bust and the development was taken over by FM Consulting who saif that they would finish the apartment but not until 2010/11 - our original completion date was 2009. We decided to pull out of the purchase and asked our solicitor (Lawyers from Spain) to execute our bank guarantee. She originally said that we would get our money back no problem. This morning however, she has emailed us to say that we are in breach of contract because we didn't pay our second 10% installment which was due on August 4th and that in order to get our money we must first prove to the notary that we had intended to complete the purchase before Grupo Labaro went bust. Her solution is that we should transfer the money to their account and they will pass it on to the notary. Then Lawyers from Spain will go to the court in Madrid and represent us by getting all of our money back. Does any of this make sense? I thought that a bank Guarantee was an insurance policy against builders going bust - if this is the case can't we just ask the bank to honour the bank guarantee. Also, how can we be in breach of contract when Grupo Labaro broke the contract by going bust.
Any insight or help would be gratefully appreciated.
skc247
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