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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 721. General bank Guarantees. What´s that?
06 March 2012 @ 15:48

  Every Bank Guarantee which is given to a buyer in an off plan purchase is just an individual certificate that the Guarantoor Bank or Insurance company issues once the developer requests it from bank/insurer to be handed to the buyer.

The general agreement bewteen developer and bank/ Insurance company is prior to the signing of contracts. This is what is called among us the " generic or general Guarantee" which can be issued by a Bank or an Insurance Company.

The name of the Bank or Insurance Company which is guaranteeing the refund of deposits if the property is not finished on time needs to be clearly mentioned in the Contract, plus, of course the account where money is paid. An individual certificate needs to be provided to the client so that an enforcement, quick judicial action can be used by him.

This does not mean that the lack of that individual certificate takes rights against the guarantoor away. The buyer can use a declarative judicial  procedure either against the guarantoor institution or the bank where money was placed ( or even both at the same time) for the refund of deposits plus legal interests in the event the property is not finished on time.

 

Olvera St Building

"Olvera St Building", Cádiz, Spain, by Tina Hsu, at flickr.com



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2 Comments


Norman said:
07 March 2012 @ 13:03

Hi,
We were not provided with an individual Bank Guarantee or Insurance from an Insurance Company.
How do we ascertain if our paticular development was covered by a General or Genetic Bank Guarantee.
To complicate matters further our Purchasing Contract does not include any details of the bank into which our money was paid by our Spanish lawyer.


Maria said:
07 March 2012 @ 13:23

Lawyer you used for conveyancing needs to provide that info to you.

You can alos check with other buyers in the development.


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