Corvera entered receivership

http://www.laverdad.es/agencias/murcia/201701/04/juzgado-declara-concurso-acreedores-859192.html

CORVERA GOLF & COUNTRY CLUB GOES INTO ADMINISTRATION

LEY 57/1968 – RESPONSIBILITY OF THE FINANCIAL INSTITUTION – BANK OR INSURER

On 16 December, the Mercantile Court Number One of Murcia declared, at the request of creditors represented by the Costaluz Lawyers & DeCastro legal teams, the insolvency and administration of Corvera Golf & Country Club SL, and the assets of this company are now suspended.

The administration of Corvera will give greater clarity for claims against banks that accepted buyer’s off-plan deposit amounts for properties at Corvera and also against the guarantor banks or insurance companies.  

Claims due to delay in delivery of the properties can be directed against the Banks in the light of recent important Supreme Court Sentences that are declaring, with forcefulness, the responsibility of the developer’s Banks as guardians of the security of those deposits in off-plan purchases.

This responsibility is given in two different scenarios, both confirmed by the jurisprudence of the Supreme Court according to Spanish Law, LEY 57/68: 

(1) Liability of the financial institution that receives amounts paid by off-plan buyers into an account opened by the real estate developer, if the property is not completed on time.  These banks are responsible, for the return of the off-plan deposits plus interest.

(2) Liability of the guarantors, even though individual guarantee documents have not been given to purchasers: the understanding of General Guarantee agreements signed between developers and insurers or banks has always been interpreted by the Supreme Court in favour of the buyer for the full amount paid to the developers bank account by the buyer irrespective of any arbitrary limit included in the General Guarantee.

Banks also responsible if there were urban irregularities

A recent Supreme Court ruling also holds off-plan property developer banks liable if the development is not completed due to urban irregularities. The reason for this strong protection to the purchaser of first and second residences is in the eminently protective nature of LEY 57/68, which gives rights to the buyer which are of an inalienable nature.

This jurisprudence contributes to the regeneration of the trust in second homes in Spain that was sadly eroded due to the unscrupulous behaviour of many of those involved in the last real estate and financial bubble.

And I thought you were talking about the airport!

Hello Keith, thanks for the posting which will help people at this location.  

Just a question from my point of view who endured a similar scenario some years ago (recent past).   Should the lawyers representing us in a similar administration have used the law to discuss the guarantees inside the administration process?

And.....if it are they negligent for not doing this perhaps?

More innocent folks aspirations in tatters, is it rank bad management or criminality, or is it a bit of both?

Dont worry Destry,

The issue has been forced by the Owners/Residents to re-kindle their dreams. Corvera was going nowhere but downhill with Corvera S.L. in place. Now the Golf Course, Clubhouse, Sports facilities and properties will be free to be sold on by the administrators to a new investor(s) that is interested in making the place a success and not just stripping the assets from the original.

Onwards and Upwards !

Best news for a long time can now look forward to 2017 with joy