Question re contract

I've been checking with my solicitor regarding our contract and he has advised that there is an estimated date for completion in the contract as April 2009, however all licences etc were awarded in September 2007.    Can anybody advised if we can execute our Bank Guarantee as of the 1st May and where would we stand legally regarding this.

Thank you

If there is no First Occupation License and handing of the house by April the 1st, you can execute your Bank Guarantee before the Guarantor institution.

http://www.eyeonspain.com/spain-magazine/bank-guarantee-legal.aspx

Hi Marie

We are in the same situation and have been advised by our lawyers that the sale should be completed before September 2009 and that before that date it is not possible to get a resolution of the contract due to non fulfilment by the developer.  

However they have also advised that the Bank Guarantee says the money guaranteed plus delay interest will be refunded in case the contract is cancelled due to breach of contract for not beginning the construction of the property or non-fulfillment of the delivery date of the property, expected to take place in April 2009.   This is 5 months before what is stated on the contract.   They have further advised that if we decide to cancel the contract we could try to execute the bank guarantee first, but not before April 2009.

We have also been advised that the common practice among promoters has been to cancel the contract with a penalty (keeping 50% of the money we have paid) or forcing us to complete and now in this global financial crisis it could be the the developers do not allow us to cancel

My questions are as follows

1.  Would we be able to execute the Bank Guarantee at this stage or would we have to adhere to the contract dates?

2. Will our Bank Guarantee cover us after April 2009?

I would be extremely grateful for your advice regarding this.

Many thanks

Bank Guarantees are executable by the date mentioned in the contract. Automatic extension deadlines are illegal according to baasic principles of Contract Law and sufficient Case Law by our Supreme Court.

Bank Guarantees do not expire or better sais they just expire, according to provision 4 of Law 57/68 once the house is handed to the buyer.

Best wishes,

Maria