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I am positive about the property Spanish market. I believe it's still a good one for investors and people who want to have a place in Spain. The good point of the current crisis is that prices still have a way to drop. Probably we will see better opportunities for everybody.

Quick legal guide on how to recover down payments for home purchases
04 October 2010 @ 15:38

Imagine somebody buys a Spanish apartment which has still not been completely built. When signing the purchasing contract the buyer pays to the developer a down/ advance payment of several tens of thousands of euro. Several months after the agreed upon delivery time the developer has already finished building the apartment but he has still not obtained the first occupancy license (authorization issued by the municipality which allows to use the apartment). Can the buyer recover his down payment?

Read the whole article in The Spanish Brick

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Keith - Bank Guarantees in Spain said:
04 October 2010 @ 15:14

Dear Andres

A nice article.

I am pleased that more Lawyers are beginning to recognise the obligations of the Banks under LEY 57/68.

Article 7 of LEY 57/68 states that the rights given to buyers under LEY 57/68 are of ‘Caracter de Irrenunciables’ which translates to ‘Inalienable Character’. These rights are so strong they cannot be waived even at the request of the purchaser.

As you correctly say, developers frequently fail to provide buyers with the legally required Bank Guarantees.

Also Banks & Savings Banks are accepting funds which they clearly know are for off-plan deposits and failing to issue or verify the existence of the Bank Guarantee.

Banks & Savings Banks are also failing to ensure that the funds which they clearly know are for off-plan deposits are held in a Cuenta Especial as required by LEY 57/68.

The Banks liability is clear in Article 1.2 of LEY 57/68. It is the Banks responsibility to ensure the funds are held in the Cuenta Especial and to either issue or demand/verify the existence of the Bank Guarantee mentioned in Article 1.1

Kind regards


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