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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.

28 June 2010 @ 01:49


LEY 57/1968 provides absolute protection for the Purchaser's funds paid to the Promoter in advance for a property.  The rights granted to the purchaser under LEY 57/68 are of a 'Caracter de Irrenunciables' (Inalienable Character) and are INDISPUTABLE.

However many persons and companies associated with the Real Estate and Construction Industry in Spain failed to comply with the requirements of LEY 57/68.

Some Promotors / Developers failed to comply with any or most of the requirements of LEY 57/68

Some Banks and Savings Banks are guilty of Gross Negligence and acted with a complete lack of professional due diligence.  It must be remembered that these Banks and Savings Banks are regulated by the Banco de Espana and many also carry out their business in other countries including the UK.

Some Lawyers who were being paid by the Purchasers and had a legal duty to act in the Purchasers best interests failed to carry out the relevant checks to ensure their clients funds were protected at all times in accordance with LEY 57/68.

Some Estate Agents failed to carry out any checks on the Promotor or Developer prior to marketing the developments.  Many also continued to advertise properties on developments where they knew the developer and funding bank were failing to comply with the requirements of LEY 57/68.

Some Estate Agents continued to entice purchasers by stating in their promotional material 'BANK GUARANTEES INCLUDED' when they knew that many of the clients they had already sold to on the exact same development had not received the legally required Bank Guarantees.

This is a shocking situation and many thousands of innocent purchasers are at risk of losing their hard earned money due to the negligence and greed of some Promotors, Banks, Lawyers and Estate Agents.

The Banks & Savings Banks were the 'vehicle' through which the illegal activity operated.

The Banks & Savings Banks who were funding the developers were happy to use purchasers 'unsecured deposit funds' to lessen the Banks exposure to the various developments.

The fundamental problem is that the Spanish authorities failed to ensure compliance with LEY 57/68.  For many years’ developers, banks, agents and lawyers have been allowed to ignore the requirements of LEY 57/68.

Many of the lawyers and agents received much of their business from the developers and banks; therefore it was not in their interest to attempt to stop the illegal activity because by doing so they would be 'biting the hand that feeds'.

Many thousands of innocent purchasers have been robbed by the corrupt developers and negligent banks, lawyers and estate agents.

The Banco de Espana has also failed to regulate and monitor the activity of the Banks & Savings Banks with regards to accepting off-plan deposits.
The Spanish legal system has failed to uphold the INALIENABLE RIGHTS granted to the purchaser under LEY 57/68.

The Spanish Government must also be held accountable due to the fact that for years they have ignored this problem and have failed to take the appropriate action.

The Banks, Savings Banks, Banco de Espana and the Spanish Government must collectively accept responsibility and must act immediately to ensure that by whichever means all purchasers who were not provided with the legally required Bank Guarantees receive a FULL refund of their deposit together with the addition of legal interest.

The Spanish Government together with the Banco de Espana must ensure that all those persons and entities who failed to comply with the requirements of LEY 57/68 and all those who were complicit in the illegalities committed are punished accordingly.

Legal action is now being taken by many purchasers under LEY 57/68 Article 1.2 and justice must be done in these cases if Spain wishes to go some of the way in repairing its badly damaged reputation with regards to the Real Estate and Construction Industry.

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Philip Lowe said:
28 June 2010 @ 12:02

I am a purchaser of trampolin (campus del rio ) and left a large deposit in 2006 and want it back now as our house should have been ready in 2008, can I?, tell me someone please, we have filed a notary claim in 2009, help,we are skint oap"s thanks

goodstich44 said:
28 June 2010 @ 12:35

I'm glad to see this blog, which is really just common sense, but that doesn't seem to be something the Spanish government have much of!!

It's all very well being in the right with regards to LEY 57/68, but to actually get back what belongs to you, you are then expected to take on the time and costs of a lawyer, with no guarantee of a win, however strong and obvious your case, i.e. no BG provided.....What can be clearer??

What I feel is desperately needed is a government body of regulation to say '' yes you have been wronged'', here is your deposit back, the government will now claim their money back from the guilty party, or they will face very severe penalties.

Why the hell should it be left to the person cheated to have to take their case through expensive and time consuming litigation, when it's obvious to anyone with half a brain and a sense of justice to know that person has been cheated??

There is no excuse, it's just part of the dreadful justice system that virtually protects the crooks over those cheated in Spain. and needs changing now!!!

Keith said:
06 July 2010 @ 11:29

Philip - Which Bank or Savings Bank did you pay your deposit to in 2006?

Goodstitch - I agree with you - Yes it is a dreadful justice system, but we will do everything in our power to change it for the better!!

Chris Hewitt said:
18 July 2010 @ 18:05

You should take legal action ASAP to recover your deposit. It should be protected by a bank guarantee but even if it is not you should still have recourse. The bank who provided the guarantee is unlikely to act honourably and it is almost certain you will have to issue proceedings. Try Castaluz Lawyers or GVA-abogados ( By the way I am not advertising my services I am just a vicitim like you but have just won our case against Cajuster savings bank on appeal for the return of our deposit.

Rambi said:
09 February 2011 @ 14:14

Why should it take more money to get our money back. The Law has obviously been broken and trying to get a lawyer to understand that we clearly have a case against the banks is virtually impossible. My own lawyer took money from me and placed denuncias on the developer but did not think I had a case against the banks. The problem is I have used my money buying the properties and have nothing left to pay a lawyer to 'play' at taking action against the WRONG people. I fully understand that the lawyers are a business and by employing them it has to cost but why can't I just get my money back easily as PROMISED by law, without having to argue my case with those whose job it is to uphold that law. We are obviously naive because we think that Spanish law is the same as UK law and must be upheld. In Spain it would appear that if the law is inconvenient then you can just ignore it and the bigger and more powerful you are the more you can get away with. Yes there are some lawyers who may seem to agree with us but they want paying large amounts. As a pensioner I can not afford to lose more money and I can not afford to pay large legal bills either. Do I just walk away and say good-bye to my 70,000€ ? The only answer seems to be yes. I am frustrated by signing petitions and following blogs and forums that all seem to be going nowhere. Most lawyers seem to be saying "If we lose the costs will have to be met by you". Why are they so nervous about taking the right action? Do they not have faith in their own legal system? Is it really because the country is run by corrupt politicians, Judges, lawyers, Mayors etc? I for one am ashamed that my family roots go back to Spanish ancestors. Spain purports to be a modern EU country but it would appear to be just a veneer of culture, civilisation and justice. Can someone convince me I am wrong?

ken hawkins said:
04 August 2013 @ 11:20

I received a bank guarantee last week 30/7/2013 the lawyer said she has had it since 2009 ,the other Bank Guarantee she says she has not got.I would like to know the answers to two questions can I sue her for negligence and the fact I have proof I paid her is she technically money laundering or just negligent .can I claim the money back off her

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