Reply To: Are Bank Guarantees worth the paper they’re written on?

Spanish Property Insight Forums Spanish Property Forums Spanish Real Estate Chatter Are Bank Guarantees worth the paper they’re written on? Reply To: Are Bank Guarantees worth the paper they’re written on?


I really don’t know what you expect me to say to such a statement,mg.
Of course no innocent people should lose money – but not knowing a lot of detail about the pension fund scandal, I’m going to bow out gracefully of getting involved in that discussion.
All I do know is that a law was brought in in 1968 (Ley 57) with a very specific criteria which all Banks are supposed to adhere to when they issue a BG. And they are not doing that.

But hey, who gives a damn – certainly not the developers who often don’t even issue a BG (which is a criminal offence punishable by fines and even imprisonment), not the Banks who issue lousy BG’s, then make you fight in court to claim on them, not the corrupt lawyers who allow their clients to sign biased contracts and/or fail to obtain a BG in the first place, not their watchdog – the Colegio de Abogados who doesn’t think it ‘goes against their rules’ if this is how a lawyer behaves, not the judges involved in cases these last few weeks of people I know who allowed the purchaser to receive nothing but injustice etc. etc.

Just this week, there was an appeal hearing (yes, another case of someone winning their case in court to get their money returned on a breach of contract and of course the bank appealed). And surprise, at this appeal, the bank introduced a new argument that had not been introduced at the original hearing – the fact this is illegal and not allowed is obviously neither here nor there – and hey ho, the judge didn’t seem to care. And guess what, based on this new (inadmissable) argument the judge overturned the original ruling.

Someone wrote this week on the forum that justice is getting better in Spain. I’m sorry, but I can’t agree – and until Bank Guarantees are worth the paper they are written on, all these so-called professionals in the property and legal field can continue to make a mockery of the law.