Bank Guarantee

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This topic contains 6 replies, has 7 voices, and was last updated by Profile photo of Anonymous Anonymous 8 years, 10 months ago.

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  • #53506
    Profile photo of Anonymous
    Anonymous
    Participant

    Does any one know if banks automatically renew guarantees when the date expires, or does the developer have to apply for them.

  • #76507
    Profile photo of Anonymous
    Anonymous
    Participant

    No, they’re not renewed automatically. Also important to make sure the developer gets this renewed before it expires ❗

  • #76535
    Profile photo of mariadecastro
    mariadecastro
    Participant

    Yes, ask for a renovation, but, in my opinion, according to Law 57/68 this guaranteed cannot be limited in time as they need to be valid and inforce till the end of the construction.

    Therefore if you have got an “expired” bank guarantee and the bank is opposing that for the refund, a judge, in an executive procedure ( fast) will execute it validly against the bank and in your favour.

  • #77394
    Profile photo of Anonymous
    Anonymous
    Participant

    I have been waiting for an off plan property for over two years and its been 5 months since our solicitors asked for a cancellation contract. The developer has ignored all contact by email, fax and letter. That is the background. I have been told that I cannot execute the bank guarantee without the authorisation of the developer which in view of what I have just said does not seem likely.

    Can any of the Legal eagles throw any light on this?

    Regards

  • #77397
    Profile photo of Anonymous
    Anonymous
    Participant

    Rubbish. Find yourself a good no-nonsense litigation lawyer with big slavering fangs keen on tasting developers flesh.

    You do not need the developer’s permission at all to execute BGs.

    They breach their end of the contract (no building license, late delivery, no LFO etc.), no problem, you claim on the bank guarantee which is an executive title and thus follows an executive procedure (which means there is no litigation involved, so even a conveyancing lawyer should do it). It takes a couple of months, mostly because banks take some hideous joy out of thwarting us on claiming on the BGs. But that’s their job and that’s what the client is paying us after all.

    I differ from my colleague María because I believe that if the BG has expired you have no valid BG. And so you must renew it (your lawyer).

    It will have to be a judge it seems who will have to cancel the contract providing you have good reasonable grounds for it.

    Waiting 2 yers for off-plan is totally normal. Off-plan takes between 2-4 years. Perhaps you are refering to the fact that the developer has not delivered the property two years after the timeframe worded in the contract. In this case it would be late delivery. Two years is normally good enough to litigate providing the BL was granted in it’s day.

  • #77399
    Profile photo of Anonymous
    Anonymous
    Participant

    Hi

    Well thats sounds simple enough then so go and get your money back 🙂
    Please let us know how you get on, 😕

    Frank 8)

  • #77488
    Profile photo of Anonymous
    Anonymous
    Participant

    Just wish I could have got a bank guarantee!!!! ❗ ❗ ❗ Its not through the lack of trying over the last 4 years and have offered to pay for one as was suggested to me on this site. Have just been ignored. Have changed my solicitor and am having to go down the legal route as house caught up in no licences etc and waiting on Junta of Andalucia. So can see everything going pear shaped and us losing everything.

    Great eh !!!!

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