Bank Guarantee

This topic contains 4 replies, has 3 voices, and was last updated by  Anonymous 11 years, 5 months ago.

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  • #53437


    Can any one tell me what the procedure is for enforcing a bank guarantee.


  • #75931


    Hi Maureen
    Assuming your Bank Guarantee is still valid date-wise, the ‘normal’ procedure is:

    Your lawyer goes to the notary, and asks the notary to ‘invite’ the developer to complete by a certain time.
    Because your developer can’t complete because your apartment is not finished for whatever reason as I believe the situation is in your case, the notary will then cancel your contract.

    Once your contract is cancelled, your lawyer can apply to enforce your Bank Guarantee. He does this by sending a burofax (Spanish version of registered mail) to the bank requesting enforcement of the BG.

    As I said, this is the normal procedure, but you should be getting advice from your lawyer regarding your particular situation/reasons for the completion delay and how that stands with your rights/terms in your particular BG. Some BG’s are cleverly worded to give bias to the developer as ours was (surrender of BG dated one year after supposed completion!). And all importantly, is your BG still in date?
    I hope you have a good lawyer who is independent from the agent/developer and wish you good luck for a good outcome.

  • #75933


    Thanks for the reply,yes it is still a valid guarantee for now at least. After waiting almost four years the building is still not finished as the development is till suspended and has been for two years.

  • #75935


    Time to move on the Bank Guarantee then? What does your lawyer say about doing this?
    Maybe someone here has up-to-date info. re. latest on Almanzora Country Club’s situation.

  • #75954


    Cuevas del Almanzora’s PGOU is now on it’s final stage and is with the Junta (Andalusia) – has been since Oct. 8th. It is due to go before the next plenary session for approval. They meet approx. every 2 months, so it should be sorted by the end of this year.


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