A legal question relating to offplan Bank debt and resale of Bank repossessed property
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I wonder if someone can answer the following questions to clarify this situation please ?
- Where property has been returned to the Bank following developer insolvency, is it a requirement of the Bank who has taken over possession of that property, for debt to be recorded associated with all offplan deposited monies placed against that property and due for return to the offplan purchaser (according to Ley 57/68) following proven developer breach and contract cancellation? Are these outstanding debts recorded against the property that subsequently comes up for sale?
- Is there a "vehicle" to register this debt owed to offplan purchasers within the current conveyancing and/or judicial systems,and if so is it the responsibility of lawyers representing their clients to register this outstanding debt? Likewise is it a duty of conveyancing lawyers to research for this debt for propsective purchasers of Bank repossessed property, and if there is no register, then how would they identify this?
- Does a bank have the right to sell on a property where developer breach has been fully proven and the contract has been cancelled, BEFORE their outstanding debt to repay the deposits paid by the off plan purchaser have been fully discharged?
- Is this a current loophole that leaves purchasers of Bank repossessed property at future risk from legal action so long as Banks continue to contest their responsibilities according to Ley 57/68? If debt remains with the property, then how is this debt (following proven developer breach and contract cancellation) effectively recorded in the interim period until such time as deposited monies are fully repaid by the Bank which has a legal obligation according to all articles defined in Ley 57/68?
This message was last edited by ads on 06/07/2015.
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Maria or Keith
Would it be possible to answer the questions posted on 6th July below please?
In essence does the current system allow a bank to benefit from the sale of repossessed property BEFORE they have fully recognised their legal obligations and repaid offplan deposits associated with that property, if a legal ruling has already fully proven developer breach and the contract has been cancelled? Where is this outstanding debt associated with that property for return of deposited monies recorded in the interim (taking into account banks' responsibilities to safeguard and return deposits, according to all articles of ley 57/68).
Many thanks in anticipation.
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I would also be very interested to hear the answer to this. We have recently heard that the bank has taken ownership of the unsold properties on our developments and we are aware that there are people who placed deposits who were unable to complete purchase. As the developments were never properly finished and others have already recovered their deposits, these people should be in a good position to recover their money but I am interested to know what the bank's legal position will be regarding any properties which still have deposits against them.
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