no Bank Guarantee=refund

You should have had your BG for your last payment by now.  These BG's protect your money (supposedly!) should things go wrong. The fact that you hve been given BG's for your first two payments is encouraging. A lot of people have never received one and find themselves in deep trouble if problems arise with the building/developer.

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Banbtown:

I agree with Tish you are a privileged ( unfortunately those guaranteed have not been legally granted to many buyers in Spain), fortunately people are more informed now and things are changing.

Ok, your problem: you are in a position to ask for inmediate contract cancellation if the BG is not handed to you. There is Court Case Law to grant refund of all money paid plus legal interests if, in early stages of the procedure, and after the proper request of the Bank Guarantee or Insurance Policy to developer, that is not granted.

Not the same though ( no Court cases, even when Law covered that possibility)  if the request of the BG is  not prouced in early  stages of the  off plan purchase.  Anyways, I do encourage  people to do so under provision 2 of law 57/68 and additional provision number 1 of General Building Act of 1999.

Go for it!

Maria

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Thanks for your comments I think the developer must be telepathic as the 3rd BG arrived by courier today

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Final and complete congrats then!
Maria

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Hi Maria

I have made a couple of posts on another blog titled "Do you have a proper BG"

Spanish Solicitor does not seem to share your enthuiasm for getting money back because of lack of BG.

I would appreciate your comments because I really want to get my deposit back off the builder not neccessarily because of the BG but because he is not putting in the facilities he promised, but thats another issue. If I could use the lack of BG to get my money back  that would be great.

I have made 2 stage payments on 15/7/6 and 15/9/6 and received no bank guarantees for either payment. I have paid in total 76184 euros.

Completion was due to be 30/3/8 but because of lack of LFO I have not completed. 

I would appreciate any comments you have.

Thanks 

Dave

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Dear Laserman:

The lack of Bank Guarantee has been considered by Case Law in Spain ( Jurisprudencia) as a reason for contract cancellation. You need to prove you have asked that from developers and you have been denied or just simply ignored regarding your right to have that important executive title for he refund of your money.  Preferently in early stages of the building process.

It has also been recognised as a reason for cancellation added to other breaches at late stages of the building process.

The Law itself  ( Code Law) also covers that possibility... but you need to know how to read it, of course. We have also checked our thesis with a Professor of Civil Law in University of Seville and he agrees on our approach.

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Legal tip 166. No Bank Guarantee?: action against the Bank
20 October 2009 @ 08:41

 

 

 

 

 

Madrid, November by Martius at Flickr.com

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