Legal tip 1256. NEW! Galicia Economic Crimes Public Attorney punishing banks in 57/68 developments
Monday, January 26, 2015 @ 12:16 PM
Different angles of the protection law 57/68 is for off plan buyers in Spain is being exposed and applied. So very good news.
In relation to recent Court Decision by the Supreme Court by which a bank is condemned to refund full mortgage payments and related interests paid by an off plan buyer whose unit was remortgaged by the Bank in favor of the developer, knowing there were buyers of these; now, in Galicia, this Economic Crimes Attorney, Augusto Santaló, just speaks up for those affected by the collapse of developments along these crisis years and state the bank should be ultimately responsible and accountable to the dozens of deposit payers in these scenarios, based on Case Law of the Appeal Court of Burgos who ruled in three judgments in favor of those affected and against financial institutions.
Developer proceeded to sell homes receiving all or a significant part of the price of these without a guarantee required by law. Later on sales and after price perception by buyers, developer created mortgage securities with Caixa Galicia and Caixanova, "seriously damaging the rights of buyers who were unable to get their money back,"
For the Economic Crimes Attorney, such liability is deducted from the knowledge they had when they provided mortgage loans, knowing of the existence of private contracts of sale and payments made in advance. It also warns that banks did not require or found that the developer constituted the guarantees established by law 57/68 and, being aware of the crisis of the company, decided to refinance with redistribution of liabilities on property units so that the amount of these exceeded the sales price.
If this thesis of the Economic Crimes succeed (and there is already a precedent by the Supreme Court), hundreds of people affected in this and other developments which were unfinished due to the bursting of the bubble or passed to the SAREB could undertake civil and even criminal proceedings to recover the advanced payments which in many cases exceeded 50,000 Euros.
Judicial sources interpret the general timeframe for presenting a lawsuit will be 15 years from date of payment.
Mondoñedo, Lugo, north of Galice, North western Spain