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Law in Spain

Law in Spain is a dedicated Blog to advise British Expats living in Spain about their legal issues through the expertise of Abad Abogados lawyers. The main purpose of this blog is helping Expats to find useful and updated legal tips to deal with Spanish Bureaucracy.

Recovering the Money you paid in advance to a buiding developer.
06 June 2016

There is still hope of recovering the money if you were affected by a failed housing promotion in Spain.

A law from 1968 holds banks responsible for the amounts that were paid in advance for unfinished properties: The Law is 57/68 covering the receipt of ‘payments in advance ‘ in building and selling apartments. The law is crystal clear in that building developers have the obligation to be co-signed by banks, and that banks are to be held responsible for the amounts paid in advance. This law was created to prevent the fiasco of the building developer Nueva Esperanza from happening again, a fiasco that left more than 10,000 Spanish people without houses… and without the payments in advance that they had made for them.

Banks state that many developers did not follow the guarantee procedures in order to save on costs, which, after their liquidation, would hypothetically leave buyers without any chance of claiming these amounts. However, the Supreme Court judgment of 21 December 2015 is clear in this aspect.

“When buying or selling properties under the 57/1968 Law, credit entities that admit to having received payments from the buyers in the developer’s bank account without demanding that a special account with the respective guarantee be opened, will have to take responsibility regarding the buyers for the whole of the amounts paid in advance to the developer’s account or accounts opened within the said entity”

According to the BBC, in the United Kingdom there are nearly 100,000 people affected by the Spanish real estate fiasco, and there have already been plenty of positive judgements.

If you paid money in advance to a developer that did not keep its promise and you do not know how to get the money back, today could be your lucky day! Thanks to this Law and to our Firm you can now finally recover what is rightfully yours.

Contact us immediately to discuss your claim.

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