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Spanish Off-Plan Property - Bank Guarantees - LEY 57/68

This blog is for all those Off-Plan property purchasers in Spain who have not received Bank Guarantees for their deposit funds as required by Spanish Law, in particular LEY 57/68 Article 1.1 and 1.2 and are now at risk of losing their money. In addition many purchasers who did receive Bank Guarantees are now finding that the Spanish Banks are refusing to honour them without legal action being taken by the purchaser.

Friday, April 26, 2013 @ 4:11 PM



Foreign & Commonwealth Office
Overseas Residents Service Unit
Consular Assistance Group
Room WHMZ 4.2
King Charles Street

25 April 2013

Our Reference: MIN/*****/2013

Dear Keith,

Thank you for your letter of 04 April to the Prime Minister about his recent visit to Spain. Downing Street have passed the letter to me and asked me to reply.

Firstly, I want to extend my congratulations to you and all those involved over the recent Albacete Appeal Court decision dismissing the Banco CAM appeal and ordering them to pay the costs of the appeal. You must be really pleased with this decision. Myself and colleagues at the British Embassy in Madrid – including the British Ambassador, Giles Paxman - have been monitoring the case and were thrilled to hear of your success. Your success is a valuable case study for us to reference in discussions on property matters with Spanish authorities - particularly when talking about bank guarantees.

In your letter to Prime Minister you ask that he raise bank guarantees with Mariano Rajoy. I can confirm that the Prime Minister discussed a range of issues during his visit, including reform of the EU and prosperity priorities. Unfortunately, property issues were not covered. I can confirm, however, that bank guarantees in Spain remains a subject that UK Ministers are aware of and raise where they have the opportunity. Mr Paxman and officials at the British Embassy do likewise during their meetings with Spanish officials. This is an issue that we know continues to affect British Nationals and we will continue to urge the Spanish authorities to address it appropriately.

Yours sincerely,

Stelios Kyriakides

Like 0


Justin said:
Friday, April 26, 2013 @ 3:46 PM

Great stuff Keith! Fantastic result.

Keith said:
Friday, April 26, 2013 @ 3:53 PM

Thanks Justin. Let's hope CAM don't appeal to Supreme Court and that by mid-May Lawsuit 1 will be a firm decision and closed.

Anne said:
Saturday, April 27, 2013 @ 6:28 AM

We'll be keeping fingers crossed for you all Keith.
Surely with such strong supportive evidence the Bank won't appeal to the Supreme Court.
It would be a complete travesty of justice - all eyes from all quarters are peeled on their behaviour now!
Let's hope that true justice prevails and sets the scene for Banks/developers/lawyers to recognise their obligations relating to offplan purchase and for judges to consistently enforce ley 57/68.
Thanks for keeping us all posted and for your continuing endeavours to bring this to the attention of the Government.

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