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El blog de Maria

Your daily Spanish Law reporter. Have it with a cafe con leche.

Legal tip 1098. NEW! Leon Appeal Court on Banks liabilities
28 January 2014 @ 20:45

Recent, December Court Decission by Leon Appeal Court stating that:

Regardless the existence of a "special account", if there are enough evidences ( Bank being sole financer, Bank knowing private contracts...) for the Bank to know that those amounts were off plan payments by buyers, applying Law 57/68 and its clear protective and antiformalist character, according to the abundant existing Case Law, is liable for the refund of those deposits if the contract is cancelled.

Legal advice

Leon, Northwestern Spain, by Nuno Dantas, at


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ads said:
29 January 2014 @ 17:02


What are the legal obligations on the Bank that provides a generic BG to monitor off-plan purchase contracts and deposited monies and issuance of individual Bank Guarantees, if there is more than one sole financier for the development?

Also does the conveyancing law firm have responsibility to identify which individual Banks are responsible for financing the development, and ensuring that the details relating to where deposited monies were to be transferred were written into the original purchase contract i.e. do they have a legal obligation to stipulate which individual financing Bank, if there was more than one Bank funding the development, was to be responsible for protection of the purchasers' monies, or is it sufficient to just make reference in the original purchase contract to the generic Bank ?

If monies were subsequently transferred into another Bank rather than the generic Bank, do you need to gain proof that this Bank was one of maybe several Banks funding the development and would this individual Bank (as opposed to the generic Bank) become responsible for return of monies?

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