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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!).

Civil Claim for Deposit Return: What did I get for my money?
02 February 2011 @ 09:40

Having spent several thousand Euros to get a decision against a developer and an order to pay I thought the matter was over...well it was only just beginning! Only in Spain!
We then had to pay more to go through the process of setting the debt against some of the developers properties since they had no liquid assets (apparently). So these specific properties got identified and then basically someone else came along also assigned their debt against the same properties! So what we had identified for security of what they owe which leaves us with no security now as there is no equitly left for us there! If only the solicitor had said that such a risk existed then I think I would have thought twice about taking such action in the first place.
So then then the solicitors did a check to see what else there was to go for and found there is nothing. Therefore they thought that they should call a creditors meeting so that we can secure at least 25% of our debt as a priority over other debts the company has. Good idea, but in practical terms if I get 9,000 of the 36,000 I am owed and then I take off all their legal fees I am just going to be left with a few thousand meaning all this time and effort and expense was a waste! I might as well have done nothing!
I suppose a challenge against the banks is a harder one to win without a bank guarantee but at least if it works we get the full amount plus legal interest for 6 or 7 years or whatever it will be by then.
Please also see my sister blog under 'Intersting Links' on the right hand side here...

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Anne said:
02 February 2011 @ 10:05

Have you considered claiming against the law firm's legal indemnity insurance for negligence if they did not follow the law 57/68 and identify the Bank and special account details within the original purchase contract? Did your conveyancing lawyer request the delivery of Bank Guarantee from the outset? Also have you requested that your law firm provide the detailed banking information where your monies were placed, or have they denied you these details? Have they compromised your legal position, thereby proving that the legal obligation by the bank concerned has been impossible to track?

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