Reply To: Bank Guarantees


Suzanne, in our case the bank would not give BG’s (or stopped giving them 😕 )for Santa Maria Green Hills because they knew there was a problem. This was confirmed by another lawyer we later dealt with. We were told by DLM, our original firm of lawyers who had POA to sign the purchase contract, that we would have a BG for our first stage payment. This did not happen, unbeknown to us. We only got a BG 15 months later when they (Eralia) eventually owned up to the fact that our apartments would not be built. Our BG was dated 2 days before we were told of this by DLM. As we later learned, the directors of Eralia had to pay a vast sum of money to the bank to cover the BG’s. Only then were BG’s issued. This seems to be in line with what Melosine said.