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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.

12 October 2012 @ 00:49

A buyer at Las Higuericas, Finca Parcs has won an individual case against CAM Bank in the Appeal Court in Murcia.

I am extremely pleased for the buyer involved whose Lawsuit was filed in 2010 because on 18 May 2011 in the First Instance Court they won against Cleyton GES but most significantly they lost against CAM Bank. Their Lawyer then submitted a very good appeal and on 27 September 2012 the
Murcia Appeal Court accepted the appeal and revoked the First Instance Court decision which had originally absolved CAM Bank of any liability.

Therefore CAM Bank must now refund the deposit to the buyer.

The buyer in this case did have a Bank Guarantee for the first instalment of their deposit but not for the second instalment. So this is slightly different to the majority of our group members who never received the legally required Bank Guarantees for any part of their deposit. In fact out of the 47 group members in our first group Lawsuit only 2 had received Bank Guarantees for part of their deposit payment.

In our second group Lawsuit we currently have 21 group members and 2 of those had Bank Guarantees for part of their deposit payment. So we have 64 of us who never received Bank Guarantees for any part of our deposit payment.

However, this decision dated 27 September 2012 from the Murcia Appeal Court Section 1 is still very significant. It is an
Appeal Court decision and is Case Law. So this will certainly be considered by the Albacete Appeal Court Magistrates when they make their decision on the CAM Bank appeal in our group Lawsuit 1 case on 4 March 2013. It will also be of great benefit to our group Lawsuit 2 and to any Finca Parcs buyers represented by other Law Firms.

As you know, since 2008 I have always been of the opinion that the banks had a liability according to Spanish Law, LEY 57/1968, in particular Article 1.2. In fact when I first wrote to CAM Bank in 2008 I made exactly those points to them. Unfortunately at that time there were no Lawyers who agreed with my views. But 4 years on it is a very different situation and the legal opinion has changed and more importantly so has the legal interpretation of LEY 57/1968 by Judges and Magistrates.

I am elated at this decision against CAM Bank from the
Murcia Appeal Court
. Firstly it is absolutely fantastic news for the buyer concerned as their Finca Parcs nightmare is almost over…….they just have to wait for CAM comply with the Appeal Court decision and release the funds.

And……for those of us still seeking justice in the Finca Parcs nightmare this decision can only help us all.
It is also Case Law that can be used in other similar cases.

Many congratulations to the buyer involved and congratulations to Fuster & Associates!


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