Don't buy off plan without one

If you're buying off plan in Spain then you really need a bank guarantee to protect you.

This a really hot topic for many at the moment so post any questions or comments here or start a new thread.

Hmmm.. even if you buy off plan WITH a guarantee it doesn't seem to do any good, our apartment is 9 months (unreasonably) late at the moment and despite months of trying to evoke the guarantee , including changing solicitors, we are still no nearer to obtaining our deposit back, we were not informed of any delay by the developers. apparently the insurers (who back the guarantee)  will not pay unless the sale is rescinded by the developer and the developer is refusing to do so ... what is the point of the guarantee!

We now have an excellent (independent) solicitor who is doing everything they can but it may end up in court with us having to stump up thousands in costs up front, and still no guarantee that we will win. So, beware even when buying off plan even with a so called guarantee !!!!. it seems these people can do what they want.

Hi everyone,

I have posted under many headings in the last few days as we are dealing with Atlas, buying off plan.

Latest this morning on asking about bank guarantee,was advised by their head sales person that we wouldn't be able to get one as we're only paying 20 percent deposit and that it would only be available if we were paying down something like 40 percent.

Can anyone enlighten me?

(They're now holding the aprtments until 10.30 am tomorrow for our answer.)

Have read some of your other posts as well as this. All sounds a bit woolly to me. Atlas appear to be holding a gun to your head. If it were me I think I would look elsewhere for my property. I have a long term belief in Spain as a market but it is a buyers market at the moment and there is a lot to choose from. As a buyer I think you should consider yourself in a position of strength and not subject to hard sell tactics. If it were me I would tell them to hold the apartments until they find another buyer. 

Who is your legal advisor and what is he/she advising you to do. No doubt if you are using one introduced by Atlas you might not be getting straight talk or unbiased advice. Remember that a lawyer here will not bite the hand that feeds him. They will be concerned with maintaining the flow of business from developer and agent alike. A bank guarantee does not depend on how much deposit is being paid. It is supposed to be a legal requirement to protect your money in the event a developer goes tits up.

If the guarantee then needs to be invoked at a later date that is an entirely different matter - seems as if there is a reluctance to address the problem - by agent, lawyer, developers alike.

Regards Smiley  

Hi Basil I would talk to your lawyer - that is what you are paying him for - Bank Guarantees are supposed to be a legal requirement.

Rgds Smiley

Hi all.

I think you will find that bank guarantees ARE a legal requirement, but many developers forget to mention them  when you purchase your property. When i asked for one it was forthcoming but did take a number of weeks for it to come through and i have to pay 1% per year on the deposit to be covered. Although a legal requirement, banks etc., are allowed to charge for one but some dont. I myself am happy to pay about £200 a year for one, rather than not have one.

           Cheers.  Bob.

Hi

We are currently buying in Almeria and despite asking for our bank gurantee our builders say they do not have one. We are worried that we will lose all our money since we have paid  a 25% deposit. How can we insist on getting a guarantee?  Even independant solicitors seem to have difficulty in obtaining information from builders and it doesn't seem to be just small businesses but large ones that evade Spanish law. Surely we have some rights or does Spanish law not really account for anything in Spain?

Tracy

Hi Tayah be asserive with your lawyer. They are supposed to be representing you after all not the developer. They are a legal requirement on any new build and if it is not there the developer is breaking the law so get your lawyer to stick up for your rights. many lawywers in Spain will do anything for a quiet life on the basis that you dont know the law so "why bother making a fuss".

Rgds

We bought through Atlas, but used a UK solicitor (Atlas were NOT amused).

We bought off plan and our solicitor insisted on a bank gaurantee before we paid the next installement.

He got it fairly easily, however, as our next payment went over the due date, this meant that an "extra" that we were paying for in that payment, was late also, hence our "extra" was now not available.

What was the extra????

Most important thing, the spiral staircase from our terrace to the solarium. (We have an attico in an aprtment block)

I was totally gutted and still am to this day. We are in the process of getting an architect to do plans and have them approved by the Town Hall, to cut through the ceiling of an inside galleria and install a staircse there. (We cannot go via the terrace now as new coomunity rules prevent this sort of alteration)

So, although we did not get our spiral, we were safe with our purchase, which I suppose was the most important.

Oh and yes, we can still use the solarium, we have to exit our front door, walk down a hallway, up 2 flights of stairs, through a locked doorway, onto a communial walkway and finally, through our garden gate!

And all that with Osteoarthritis - nice!

The General Building Act of 1999 states that the developer can be imposed a fine of the 25% of the amounts not guaranteed if he fails to provide bank guarantee or insurance to the buyers.

Maria L. de Castro

www.costaluzlawyers.es

I have already been discussing under 'Buying Property' and ended up discussing Bank Guarantees, so thought I'd post it on here also.

I have my contract which states Bank Guarantee is available and there was a reply to this posting stating that it sounded as if we may be asked to pay for it.

I am therefore pasting here the part from my contract that states the paragraph re. the Bank Guarantee:

'If purchase asks for it, the vendor commits itself to guarantee the amounts handed over for the purchase of the property object of this contract by means of a individual bank guarantee, in the terms and conditions of the Law 57/1968'

I will be writing to my lawyer this evening, so I will be putting that I will indeed be asking for the bank guarantee and under the same Law 57/1968 that I do not expect to have to pay for this in any way.

Any comments appreciated.

Thanks

Hi everyone.  The following is what I sent to my lawyer on receiving the contract to purchase my property re bank guarantees:-

The vendor is legally obliged to provide ( at his cost) this guarantee. The practise  in the contrary is against the General Building Act and Consumers Regulations. Fines are imposed to developers if they don´t act this way.

General Practices can be Bad Practices ( and, unfortunately, they oftenly are)

Maria L. de Castro

Lawyer.

www.costaluzlawyers.es