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Property Deposit Reclaim In Spain

I am one of the many people who put a deposit on an off plan property in Spain, only to find several years on that I had no property and a very tough fight on my hands to reclaim my deposit. I have joined together with others on the same development who are in a similar situation and together we are working with Spanish Lawyers to take appropriate legal action. Some of the group members simply don't want their property now because it was not what it was supposed to be in the first place (like facilities were not put in place that were promised at the time they paid their deposits). This blog gives snippets of our journey and presents some key lessons learnt. We hope for a positive outcome some day, in fact some have had their money back already! The rest of our group are now taking action. We have learnt a lot of lessons along the way as to how to get your money back (and avoid having the lawyer take most of it from you on success!).

British Ambassador's Comments on Article Including Information on Spanish Bank Guarantees
26 January 2011 @ 19:00

 

 

Please find below a copy of an email update on some comments also on honouring bank guarantees... see bold text for main part of the email....

 

 

British Ambassador's comments on FCO Blog 26/01/11: Property news
From:
AUN <aun@abusos-no.org>
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To: AUN <aun@abusos-no.org>  

Giles Paxman: Some encouraging property news


There's some good news recently for British people faced with property
purchases in ... building projects that did not meet the requirements of
Spanish law, ...
 

blogs.fco.gov.uk/roller/.../some_encouraging_property_news

*******
Giles Paxman
Ambassador to Spain, Madrid (RSS feed )

Some encouraging property news
Posted 26 January 2011 by Giles Paxman |

There's some good news recently for British people faced with property
purchases in Spain that have back-fired, building projects that did not meet
the requirements of Spanish law, or constructors who've simply gone bankrupt
and left houses unfinished.

At the end of December, Spain introduced reforms to the Criminal Code which
increase the penalties for town planning crimes and prevent the perpetrators
from profiting from these crimes. They include punishing public officials
who allow illegal properties to be built and stricter penalties for
corruption. Courts can now order the perpetrator to pay the costs of
restoring the land to its original state, without affecting the compensation
owed to purchasers who bought in good faith.

Much as we would like to help, the Embassy cannot get involved in the large
number of individual property cases, all of which are different and often
very complex.  But we do regularly raise the issue in general terms with
Spanish ministers at a national and regional level. We also try to give
British nationals as much advice as we can about how to avoid problems when
buying property and who to turn to if they find themselves in trouble. You
can find this information on our web site.

And there is further encouraging news for purchasers who have bought off
plan and were issued with a bank guarantee.  In December, a court in
Cantabria ruled that a purchaser had the right to demand that the bank which
guaranteed the construction of a property refund the amount paid in advance
by the purchaser when the property was not completed as promised. This may
sound obvious but, surprisingly, many banks had found ways to avoid paying.

The Andalucian regional government has also announced that it is preparing
regulations to deal with the large number of properties in the region that
have been built illegally. This includes legalising properties where
possible, and in some cases issuing a minimum licence allowing the property
to remain even though it is not incorporated into the town plan. We are
working with the regional authorities to get more information on how these
proposals will work and the timeframes involved. We will update our website
with this information in due course.

In addition, a judge in Almeria has this month ruled that although a
property built more than six years ago did not comply with town planning
regulations, the owners have the right to be connected to essential
utilities such as water and electricity. It is not clear whether this ruling
will set any kind of legal precedent for similar cases, but it may be seen
as a glimmer of hope for those who are currently living in illegal
properties without access to water and electricity.

While the above news should bring some comfort to those affected, my advice
for those considering buying in Spain remains very clear: seek independent
legal and financial advice throughout the purchase process and ensure you
have all the correct documentation before signing any contracts.

You can find more information about buying a property in Spain on the
property section of our website.

Giles Paxman
 



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1 Comments


rebecca maher said:
13 August 2011 @ 20:31

My partner and I built our own house in spain and have all the appropriate paperwork from architects, the town hall, the notary etc. It was built as a nave and we were told that we could change its use to a vivienda ( dwelling) in 4 years time. that was back in 2002. To. cut a very long harrowing story short, my name was put on the project as the promoter and as a result of this I have been arrested when entering Spain on holiday this year and told that my building is illegal and I have to face all sorts of accusations including a penal sentence and fine etc. i didnt know anything about this hearing that was held in 2009 as I returned to uk in 2008. I have done everything by the book and have all legal paperwork to prove it. The stress was causing me to be ill and thats why I left Spain and my home. I think I am being used as a scape goat for all the real promoters in Albox as they all left without a trace. I am only the owner and have never had a criminal record before. I have been lied to and used and am now facing a prison sentence. I am 50 years old and all my partners inheritance went into our only home in Spain. We have lost everything and now I am having to face these horrendous charges. We did everything according to what the professionals told us to do. I have seen numorous solicitors in Albox and spent so much money that now I have nothing. Please could you look into this as I dont think I can do this anymore.

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