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El blog de Maria

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

Legal tip 119. Martinsa-Fadesa will give money back to buyers with no house and no Bank Guarantee:good but short.
23 July 2009 @ 12:13

Out of an agreement performed by now by the 54,7% of creditors, Martinsa Fadesa will give money back to those owners who were not given a Bank Guarantee for the return of money paid according to Law 57/68  and houses are not going to be built.

The refund limit is 400.000 € , just one refund is possible per person and it is obligatory that the house was being bought by an individual ( not a company).

The clause of the creditor´s agreement has already been accpeted by these banks: Caja Madrid, Banco Popular, La Caixa, Caixa Galicia, Bancaja y Caixa Catalunya.

The real good new is that both the company and the creditor´s meeting administrators  can assess now that  the company will go forward and even restarting activity in very near future times: beginning of 2010.

I cannot agree with the limits ( 400.000€, one refund per person, no companies) as it does not even respect the terms of Law 57/68 which grant these rights to any off plan purchaser whose house was not completed on time: with no amount/units limits and without restriction to companies, if that was the legal form used by the buyer,  but... well, it is not a bad agreement to start with ( as an initial/minimum show of respect towards consumers) and of course, there is always the possibility of going against the agreement ( using Law and case Law) and ask for more before the Judge.

Again, in my opinion just a start-with, not bad though given the past situation. 

The battle is not over.

Best summer wishes,

Maria

Atlanterra ( Tarifa) de Scooterjec at Flickr.com

 

 



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11 Comments


Brian Rowlands said:
23 July 2009 @ 18:59

This is good news as it sets an example for others to follow including the banks which have financed other developers and who did not provide the bank guarantees when they should
The high limit will I suspect cover the large majority of personal buyers
One has to assume that it is also part of the advance marketing to ensure that the damage to the conpany's reputation is mitigated, ready for when they hope to start building again in 2010
As the company was so large it had to be a build out to save the financing banks from exceptional losses
And it is good for the property market in Spain...I suppose also that many buyers of the developments which are going to be built will feel more secure




Magicmeg said:
23 July 2009 @ 19:27

I think this is great news for all involved ,I have been banging on for months about how I think purchasers purchasing a private home and not a company purchasing for profit /investment should be treated differently in the process as they are innocent consumers and should be treated as such.I am delighted at this decision but don't fully understand it or who/why this decision has been made for Martinsa -Fedesa and not for the purchasers for example San Jose inversiones where purchasers are being treated disgracefully .San Jose seem to be putting two fingers up at purchasers and are showing no concern for the future reputation of the company .Can anyone explain the difference ,is it an indication that San Jose are not going to be able to trade on or is it because of the percentage of purchasers as creditors as opposed to other types of creditors .Could some one explain I am confused .Thanks MM


Maria said:
23 July 2009 @ 22:41

San Jose creditors has now a precedent to add to their arguments against the administrators. As said, a nice precedent, but still poor in pure legal terms.

Anyhow, there is spanish legal saying which states: it is better a bad settlement that a good litigation.

Best,

Maria


Brian Rowlands said:
24 July 2009 @ 19:03

Maria
True in UK as well and whilst not a lawyer, only a surveyor and businessman, in UK 99%+ commercial legal actions are settled sometimes on the Court steps!



CES said:
28 July 2009 @ 21:40

Hi

How does this relate to those of us whose house has now been completed but it is very poor quality because they cut back on the materials as they went into administration? I understand MF saved one and a half millions euros on not doing our community areas


CES said:
29 July 2009 @ 00:09

Hi

How does this relate to those of us whose house has now been completed but it is very poor quality because they cut back on the materials as they went into administration? I understand MF saved one and a half millions euros on not doing our community areas


ANDREW MC GEOUGH said:
02 September 2010 @ 18:16

hi there, can anybody please tell me how i might go about trying to get a refund of my deposit which i put on an apartment in LA OLIVA, FEURTEVENTURA in 2004. i have tried fadesa with no result, i have tried asking fadesa to swap my deposit to some of their finished properties in other parts of spain, but all to no avail. they simply have ignored all correspondence. thank you


Robert Walker said:
07 October 2010 @ 23:08

Hi Everyone
we paid a deposit on a property in Fuertevtura, we have not heard anything since Fadesas demise does anyone have any up to date information on the deposit refund or property completions.

regards

Robert


Gary Valentine said:
29 December 2010 @ 23:13

Hi, does anybody have any latest information about La Olivia Golf Resort in Fuerteventura. I paid a deposit in 2004. But since Fadesa got into financial trouble i havent been able to get any info. There was supposed to be a bank guarantee in place but i dont think its worth the paper its written on. Any feedback would be greatly appreciated.


Maria said:
30 December 2010 @ 10:22

Dear Gary:

If you want, send your documents to us so we can do an out of Court appraisal of your situation. If there was no bank Guarantee and we can locate the account were your deposit was paid into, there might be an action against the financial institution whish received this money.

Joy and Hope for the 2011

Maria


Mike Hucker said:
26 March 2011 @ 10:09

Hi Maria
I have just read the comments left by others with ref to fadesa I paid a deposit for off plan appartment in Pego Denia and have tried to get monies returned but no joy do you know of any other persons who have lost money on this project
Thanks Mike


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