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?

#79261
Anonymous
Participant

Katy – of course some banks are “another layer in the corruption system”. Our Bank Guarantee was issued a year after our building licence was revoked.
The bank knew that nothing was ever going to be built, the developer knew it – but the purchasers didn’t. Most of us didn’t find out for another year and a half, and only then by chance rather than the developer officially informing us. It was just a ploy to perpetuate the deceit and the retention of our monies to aid their cash flow for as long as possible.

You’re absolutely right Suzanne. In our case we know for a fact that Bank Guarantees were issued on the ‘personal’ guarantees of the directors – hence pressure from them on the bank not to pay, and thus resulting in us having to fight for our money in court.

We often talk about the corrupt triangle of agent-lawyer-developer, but I believe in many cases the triangle has four corners that include the bank. I suppose a ‘square’ in which many of us were nicely ‘boxed’ in.

Note: The above paragraph does not include all agents. 🙄