Confused

Hi All,

We have received a letter from our developer that, apart from the complex being delayed until September now (1 year after the contractual deadline), the letter more worrying states the following:

"[The developers] have also stated that they will be in touch with all clients again shortly in order to renew or extend the bank guarantees on the monies you have already deposited with them. According to the list of [the developer's] creditors (which has just bee released), they owe a substantial sum of money to the insurance company that issued the bank guarantees, this makes us doubt very much that this company will be willing to renew or extend the original bank guarantees"

Have I understood this correctly - our deposits are potentially at risk if the bank decides not to renew or extend the BGs?

As far as I understand the bank guarantees do not need to be extended as the current ones are valid until completion of the property. I have both read this here on other forums and legal advise websites, plus our agent issued a letter in September 2008 stating: " We would like to remind clients that their bank guarantees cover all amounts that they have paid to the developer so far and will do so right up until completion, so at no point are their funds at risk". - This seems to contradict the latest letter above.

Have I misunderstood something, or is this a nonsense letter? Does our developers situation mean our deposits are truly at risk, or are they trying to scare us into not lawfully calming our deposits back? 

Yours,

Very

annoyed_in_spain

A valid guarantee under 57/68 endures till the granting of the First Occupation License. Therefore, go and execute it for your money back. The status of the commercial relations betweeen developer and Guarantoor cannot affect your position as guaranteed party under 57/68.

Best regards,

Maria

Hello,

You can find on this site what our experience is with this problem.

We will advice you to go to a good lawyer or soliciter and claim your money back. Do not take any risk!!!

Maria de Castro could help you or an other good soliciter or lawyer. In our case we got help from Maria de castro, Carin Peeters from Puur Spanje and Maria Carrasco from MC Consultingservices.

I did send you a private mail with some details of our case and our advice to you

Wouter