Bank Guarantees

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This topic contains 12 replies, has 7 voices, and was last updated by Profile photo of Anonymous Anonymous 8 years, 3 months ago.

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  • #54271
    Profile photo of Anonymous
    Anonymous
    Participant

    I saw this link posted on another forum. Is it possible people will get their money back now without a load of hassle and Court cases?
    http://www.spanishpropertyinsight.com/buff/?p=222

  • #85890
    Profile photo of Anonymous
    Anonymous
    Participant

    Claire

    we found out from our current lawyer, that we never had a BG issued, despite our first two lawyers telling us everything was in order. There must be many like us in the same position. Just one of many serious breaches of contract in our on-going Aifos fiasco. (7 years next june)

  • #85891
    Profile photo of Anonymous
    Anonymous
    Participant

    Hi
    Asked for a responce from my solicitors on what looked a promising report.
    This was the reply and its specific for people WITH? YES WITH BANK GUARANTEES. and in many cases excellent reasons for a claim.
    No I am not talking about just being late in construction here.
    Clear they are never going to pay out in any numbers and with property value falling they could be paying out on negative equity.
    With the Banks already having the keys returned in the thousands what chance is there of the whole Banking sytem crashing.
    Now those that have lost there deposits have lost say 30% .Now the ones that have completed have probably lost the same so it doom and gloom for almost everyone on a finacial basis.

    Hi Frank
    Love it, especially the comments by the Bank of Spain who in my experience have been as much use as a chocolate teapot! We have reported three banks to them and they told us on two occasions it was a matter between us and the bank and they had no involvement!

    It’s one of the hot topics of conversation when we meet up in the notary and all the lawyers are saying the same, they just won’t pay out and they push you to taking them to court!

    Luv

    Just Frank 8)

  • #85894
    Profile photo of Anonymous
    Anonymous
    Participant

    Yes it is true, banks are currently very reluctant to pay. I’d like to point out that if you have the words ‘a primer requerimiento’ on your BG banks usually pay in a few weeks so for new buyers I advice to call for this kind of BG with which you won’t need to prove the developer breach of contract in order to execute it

  • #85896
    Profile photo of Anonymous
    Anonymous
    Participant

    it seems a cruel twist of fate, that many who have completed off-plan, in good faith with papers in place, are worse off (on paper) due to prices falling and furniture/maintenance/on-going community charges, than those who due to lack of regulation, lost their deposit and just had to walk away. What should they do? hold on and wait, hoping prices will rise again, or sell now at a large loss, in case it gets worse still?

  • #85898
    Profile photo of katy
    katy
    Spectator

    If I were in that situation I would hang on to it and (try) to enjoy the place, hope to rent it a bit and pray 😉

  • #85899
    Profile photo of Anonymous
    Anonymous
    Participant

    Katy

    i think i would to, depending on the overheads. If you are happy with the place and can put a good price on owning or holidaying in it, then perhaps it’s not to bad?

  • #85902
    Profile photo of Anonymous
    Anonymous
    Participant

    If you are happy with the place and can put a good price on owning or holidaying in it, then perhaps it’s not to bad?

    Which is exactly what J. Frank does 🙂

  • #85903
    Profile photo of Anonymous
    Anonymous
    Participant

    The problem with most cases of people wanting to claim on their Bank Guarantee is that they want to do so because the property does not have all legal docs. in place, such as an approved Building Licence or an LFO. Unfortunately they are put in the awful position by certain judges of being ordered to complete regardless.

    Something Lee G wrote on his “Catral property questions” brings home the dangers of completing in the above scenario:

    @Lee G wrote:

    We have been reliably informed, that some builders have done substandard work and part of being made legal involves a building inspection where faults will have to be rectified. This can include foundations needing underpinning to a house rewire. And the home owners are the ones liable for paying all costs to rectify the problems.

    Without the LFO (which means the building has not yet been inspected by the Town Hall to their satisfaction) you are laying yourself open to future costs.
    If it was me, if there is no LFO, I would not complete and would take the chance of claiming on the Bank Guarantee. The law is supposed to be on your side in this situation.

    Re. those without a Bank Guarantee, I am yet to hear of a single case where a developer is penalised for not issuing one despite it being law that they must do so. When the subject is brought up in court the judges attitude seems to be “Well the building got built so you don’t need one now anyway”.

    Spain has a lot to address to make their country appear to be a lawful society, and its judges are not helping.

  • #85904
    Profile photo of Anonymous
    Anonymous
    Participant

    IMO many Judges are “rubber stamping” the corrupt developers and illegal developments.

  • #85907
    Profile photo of Anonymous
    Anonymous
    Participant

    Nail on the head, Claire. What chance the ‘little people’?

  • #85908
    Profile photo of Anonymous
    Anonymous
    Participant

    @charlie wrote:

    Nail on the head, Claire. What chance the ‘little people’?

    The little people will hit back, it may take a little time to take effect but when the spanish economy crashes and the man in the street cant feed his family then there will be regret for the failings of the greedy developers and inept lawyers.
    This may be a blessing in disguise the Brits will return but only when the system is deemed to be legitimate more power to the responsible and incorruptable lawyers and developers.

  • #85909
    Profile photo of Anonymous
    Anonymous
    Participant

    ……..oh yes, the rise of the umpa-lumpa!!

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