Legal tip 782. Supreme Court and Banks risponsability
Thursday, June 7, 2012 @ 2:59 PM
This is how our Supreme Court sees Law 57/68. It was clearly pictured in a Court decission dated 8th of March 2001:
Law 57/69 of 27th of July 1968, on advanced amounts in off plan purchases establish in provision 1 that individuals or companies promoting buildings must - and being this an inalienable right of the buyer, according to provision number 7- when receiving money before or during the building process, guarantee the refund of those advanced amounts, and therefore must formalise an Insurance ( or a Bank Guarantee)
It can be deducted, that the essencial and social reason of this Law is to PROTECT the person who has risked important sums of money for the buying of a house - a generaly essential good for life- whish in under construction.
Therefore, for its application, only indispensable requirement are: the payment of advance sums and that the house has not been started or finished, being accesory and just a matter of discussion between guarantoor and builder, any other aspects.
siendo accesorias y propias de dilucidar las otras cuestiones planteadas, entre el asegurador y el constructor.
The depositing of amounts in the account mentioned by the Insurance policy or in any other agreed between developer and buyer is not a requirement for the refund to be viable.
Excellent!
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"Ferry Tarifa-Tanger, Tanger al fondo", Tarifa, Cadiz, Spain, by Chodaboy, at flickr.com