There is still hope if you were affected by failed housing promotion in Spain. A law from 1968 holds banks responsible for the amounts that were paid in advance for unfinished properties.
There is still hope if you were affected by failed housing promotion in Spain. A law from 1968 holds banks responsible for the amounts that were paid in advance for unfinished properties: The Law 57/68 on the reception of payments in advance in building and selling apartments. The law is crystal clear in that building developers have the obligation to be co-signed by banks, and that banks are to be held responsible for the amounts paid in advance. This law was created to prevent the fiasco of the building developer Nueva Esperanza to happen again, a fiasco that left more than 10.000 Spanish people without houses… and without the payments in advance that they made for them.
Banks state that many developers did not follow guarantee procedures in order to save costs, which, after their liquidation, would hypothetically leave buyers without any chance of claiming these amounts. However, the Supreme Court judgment of 21 December 2015 is clear in this aspect.
“When buying or selling properties under the 57/1068 Law, credit entities that admit to having received payments from the buyers in the developer’s bank account without demanding that a special account with the respective guarantee is opened, will have to take responsibility regarding buyers for the whole of the amounts paid in advance to the developer’s account or accounts opened within said entity”
According to the BBC, in the United Kingdom there are nearly 100.000 people affected by the Spanish real estate fiasco, and there have already been plenty of positive judgements.
If you paid in advance to a developer that did not keep its promise and you do not know how to get the money back, today is your lucky day. Thanks to this Law and to our Firm you can finally recover what is rightfully yours.