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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.

RTN - Anxious wait over CAM appeal
07 March 2013 @ 19:30

 

ROUND TOWN NEWS - 07 March 2013 Written by  Jack Troughton


Anxious wait over CAM appeal


OFF-PLAN HOME buyers left without ‘Bank Guarantee’ protection of their investment are anxiously waiting an imminent court judgement in a “landmark” test case.

An action group of buyers successfully won its case against a shamed Spanish bank in a Spanish court last May. However Cam Bank appealed the decision.

The appeal was decided this week by Albacete Appeal Court. The judgement will be announced by the end of March – although the court has a record of early notification.

The case, which has aroused massive public and media interest, surrounds 47 buyers losing 1.5 million euros after CAM failed to issue guarantees to cover deposits for the Las Higuericas Finca Parcs development near Hellin, close to the border with Murcia.

Last June the court at Hellin found in favour of the Finca Parcs Action Group and the bank was described by the judge as being guilty of “banking malpractice” for its failure to protect buyers’ cash after the bank – now Sabadell CAM – and the developer were found ‘jointly and severally’ liable.

CAM and developer Cleyton GES SL were ordered to return deposits to the purchasers and pay interest and costs. The bank paid the full amount into court last August but lodged an appeal.

CONFIDENT

Finca Parcs Action Group coordinator told Round Town News he and the legal team remained confident the bank’s appeal would be dismissed and the original sentence would be upheld.

“I am confident. We have so much evidence against CAM, such a strong sentence from the First Instance Court at Hellin, and ever increasing case law against the banks,” he said.

CAM continues to argue it was not responsible for the situation and all irregularities and illegalities were committed by the developer.

But Keith said the case had become important for all off-plan buyers who failed to get the protection that was legally required under Spanish law because it would become a precedent for similar cases.

“There remains great interest in our Finca Parcs case from other buyers of off-plan property in Spain who did not receive the legally required Bank Guarantees, many of whom have their life savings at risk,” he said.

“We have always believed that according to the law, banks have a liability in these types of cases. We have worked tirelessly since 2008 to highlight this issue in the media and with the Spanish and British governments.”

APPEAL

He added: “We are confident that this month our landmark case will be upheld by the Albacete Appeal Court.”

The action group has already lodged a second action against CAM and Cleyton GES. The case involves another 13 buyers at Finca Parcs and a further 500,000€ in lost deposits.

Keith explained the 13 purchasers had not been members of the group when the first lawsuit was filed in February 2011 but was admitted into Hellin Courts in January and served on both defendants.

He said CAM and Cleyton GES must now submit their defence to the second lawsuit to the court with the prospect of another trial unless a settlement could be reached.

“The second lawsuit is even stronger than the first as it incorporates all the additional evidence that we gained through the original trial,” said Keith.

“I really cannot see how CAM will even be able to defend it – the bank must file a defence by 13th March – I am very much looking forward to reading it.”

 

 



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