El blog de Maria

Car Hire said:
Wednesday, September 29, 2010 @ 8:11 AM

Great information! i think that's great, i enjoyed reading here.

Keith said:
Monday, October 4, 2010 @ 10:07 AM

Dear Maria

Good news! We are moving ahead.

The Bank receiving the off-plan deposit must demand that the developer holds the funds in the Special Account.

For off-plan deposits held in the Special Account then the Bank must either issue the corresponding Bank Guarantee or verify the existence of a Bank Guarantee or Certificate of Insurance. If the Bank fails in this obligation they are guilty of a lack of due diligence.

If the Bank receives the off-plan deposits and fails to ensure that they are held in the Special Account as required by LEY 57/68 then the Bank is guilty of gross negligence.

If the Bank fails to issue or to verify the existence of a Bank Guarantee for off-plan deposits in its custody and then allows the developer to withdraw the off-plan funds the Bank is clearly guilty of gross negligence, lack of due diligence and failure to protect the consumer.

Under LEY 57/68 the Banks are jointly and severally liable for the off-plan deposits in their custody.

The developers may be corrupt and go bankrupt or asset strip. They are totally unregulated and are a law unto themselves. They have no respect for the law and do not seem to fear the Spanish legal system at all.

BUT the Banks are a registered financial entity regulated and supervised by the regional ombudsman and the Banco de Espana. They must comply with Spanish Law and European Banking Regulations. They must be transparent and observe good banking practice including consumer protection.

It is clear that many of the Banks & Savings Banks involved with developers and off-plan properties were only interested in the profits they expected to make from funding the projects and selling mortgages to prospective purchasers.

The Banks must be made to pay for their gross negligence and complete lack of professional due diligence. There is no excuse for their negligence. They are fully aware of the requirements of LEY 57/68 and the obligations imposed on them.

Kind regards

Keith