Reply To: Spanish Lawyers

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@barbara & Katerina wrote:

Dear Drakan
We would like to ask you a question if we may.
As you probably realise, we are in the same situation with the same development as Claire and Sofia.

Our Bank Guarantee was ‘produced’ in May 2005, despite our having paid 30% of the purchase price of the apartment in August 2003.
(I know, our lawyers were lazy, incompetent and derelict of their duty to take nearly 2 years to get our BG).

When we finally get to enforce the BG, we understand we’ll get the legal 6% interest from the Bank.
However, we assume the bank concerned will only pay the 6% interest for the life of the Guarantee – i.e. from May 2005. Is this correct?

Our question is:
Who is responsible for paying us 6% interest for the period August 2003 until May 2005 when the BG was instigated? We assume our money was sitting with the developer – is it he who has to pay?
The sum is not small – 130,000 euros.

Assuming your answer is that the developer should pay, and saying they won’t/don’t – can we sue our lawyer for this sum on the basis that it was their derelict of duty that caused this situation?

Would really appreciate you reply to this one – we are shortly off to Spain to pay some visits! 😈

With many thanks, Drakan

Hi Katerina.

Wrong. The 6% compound interest is due since the time of the downpayment,in this case year 2003 which was when you paid the 30%.

The developer has to pay for the 6% since 2003.

You realize what I’ve written regarding the BGs ? they are there only If the developer goes broke. If he’s not broke they cannot be enforced in any way.

If the case is that the developer is not broke albeit he’s failed to obtain the Building Licence you’re still entitled to be fully refunded, plus 6% compound interest plus other amounts. Look at past posts in this thread.