Unfortunately Bank Guarantees Again

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This topic contains 9 replies, has 6 voices, and was last updated by Profile photo of katy katy 10 years, 5 months ago.

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  • #51902
    Profile photo of Anonymous
    Anonymous
    Participant

    Without searching everywhere on the site, hopefully someone can answer this for me. I put a deposit on a house off plan 3 years ago but the house has never been finished (yet!!!). My lawyer never got a BG in the first place but since the building was started the whole project has been sold by the original developer to a new developer.

    My question is, can my lawyer still get a BG, like he should of done in the first place?

  • #62828
    Profile photo of mariadecastro
    mariadecastro
    Participant

    Ask your lawyer to try. It seems to me a good moment to do so.
    M.

  • #62831
    Profile photo of Anonymous
    Anonymous
    Participant

    Digger,will your contract be valid with the new developer? Check it out…it could go against you somewhere down the line. I would ask for a new contract with a bank guarantee to be on the safe side.

  • #62834
    Profile photo of Anonymous
    Anonymous
    Participant

    Does a buyer have to pay for a bank guarantee if they hadn’t been given one when first buying?
    If you ask your solicitor to try and get one now would the solicitor charge you for doing so ? Or is it a case of asking the developer to hand one over?
    Or can the developer ask you to pay for one?

    How does it work?

    Thanks Axwhale

  • #62835
    Profile photo of Anonymous
    Anonymous
    Participant

    You should never have to pay for a BG. Your lawyer should not charge you (again) for obtaining one retrospectively as they should have ensured you had one soon after your contract was signed.This is what you have paid for in the first instance of engaging them to act for you. If you do not have one then your lawyer has been negligent.The developer has to provide a BG by law, for each stage payment that you make, at no cost to you.

  • #62836
    Profile photo of mariadecastro
    mariadecastro
    Participant

    Basic idea: The bank guarantee is not a whim or an extra is a right a legal obligation of the developer in every off plan development since 1968. You don´t have to pay for it. You just must have it before giving any amount to developer or if not… firmly claim for it. You or your lawyer.

  • #62907
    Profile photo of Anonymous
    Anonymous
    Participant

    what happens when you have bought of plan in 2003 signed legal document in 2004, handed over money and then even with emails phone calls no BG is given to you! 😈

  • #62908
    Profile photo of mariadecastro
    mariadecastro
    Participant

    You will have to firmly ask for it. 1968 Law and First Additional Rule of the General Act of Building of 1999.

    You can have mor info in this other forum here: http://www.spanishpropertyinsight.com/forums/viewtopic.php?t=919

    I translate here the basic provisions of the 1968 Law.

    Art. 1.- The developer must guarantee the devolution of the deposited amounts plus 6% of annual interests rate, through an insurance contract or by bank guarantee, for the cases when the construction doesn´t start or doesn´t finish in the agreed time.

    They also need to open an special bank account for your amounts (
    different from the general one of the developer) and have it expressly in the contract.

    Art. 2º.- In those contracts where the parties agree on anticipated
    amounts , the develper must expressly state:

    a) That the developer will give back to the buyer all the advanced
    amounts plus the 6%, in those cases where the construction doesn´t
    start o doesn´t end in the agreed deadline, or the certificate of
    habitability is not granted.

    b) Reference to the bank guarantee or insurance contract ,
    ndicating the name of the Bank or the Insurance company.

    c) Specification of the Bank or financial institution and the account number where the buyer´s money is deposited .

    At the signature of the contract, the developer will give to the buyer
    the document that contains the guarante ( the aval or the insurance
    contract) and the document must have a reference to the amounts that
    need to be anticipated.

    Art. 3.- Once arrived the deadline for starting or finishing the works and not having them either started or finished, the buyer can choose between cancelling the contract with the devolution of advanced amounts plus 6% annual rate, or to concede a time extension, wich will be stated in an additional clause in the contract, specifying the new deadline with the date for finishing the construction and completion.

    The insurance contract or the bank guarantee together with the docuement that fully prove that the works has not been started or the completion deadline has been met and not complied, will have executive power as it is stated in the Title XV of Book II of Civil Procedure LAw, to demand from the insurance company or the bank, the amounts that the buyer is entitled to ask for,Without prejudice of any otner given rights also applicable.

  • #62911
    Profile photo of Anonymous
    Anonymous
    Participant

    Maria, why does the law quote 6%legal interest when we have absolutely no chance of getting it? 👿

  • #62918
    Profile photo of katy
    katy
    Spectator

    Not very helful but..maye they should write these bank guarantees on toilet roll 🙁

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