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we purchased two properties from a builder in Spain and did not complete on them - the builder said they would refund our deposits but we have not yet had these back, it's now 3 years later. Does anybody know of a solicitor who will act on a no win no fee basis to try and get the deposits back? Also, has anyone had any success in obtaining a refund of their deposits? Any advice appreciated, thanks. embed
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Hi garner,
Where did you buy? Do you have a bank guarantee or insurance policy? Did you use a lawyer for the purchase?
Joan
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Hi Joan thanks for the reply,
We purchased through Palmera Properties and one apartment was at Envia Golf and the other on the proposed Azahar development through Inroal.We do not have a bank guarantee or insurance, and the solicitor we used (through Palmera Properties) was merely for the transfer of deposit monies to the relevant account. Any advice is much appreciated, though we do not have any money to pay a solicitor upfront to take this further.
Have people had any success in securing deposits back from Inroal?
Thanks embed
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Hi
we are in the same boat but with Grupo Trampolin who have conned thousands of people, spanish, british, irish, scandanavian, and we would love to know if we can claim our deposits back but its like getting blood out of a stone.
If you have success please let me know and I will try that route too.
regards
chrissie
_______________________ smile and the world will smile with you!
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Any developer or bank not protecting deposits for off plan purchases in a Cuenta Especial and failing to issue the corresponding Bank Guarantees are breaking Spanish Law, in particular LEY 57/68, and should be punished accordingly.
Here are the relevant clauses of LEY 57 / 1968
Primera - Garantizar la devolucion de las cantidades entregadas mas el seis por ciento de interes anual, mediante contrato de seguro otorgado con Entidad aseguradora inscrita y autorizada en el Registro de la Subdireccion General de Seguros o por aval solidario prestado por Entidad inscrita en el Registro de Bancos y Banqueros, o Caja de Ahorros, para el caso de que la construccion no se inicie o no llegue a buen fin por cualquier causa en el plazo convenido.
Segunda - Percibir las cantidades anticipadas por los adquirentes a traves de una Entidad bancaria o Caja de Ahorros, en las que habran de depositarse en cuenta especial, con separacion de cualquier otra clase de fondos pertenecientes al promotor y de las que unicamente podra disponer para las atenciones derivadas de la construccion de las viviendas. Para la apertura de estas cuentas o depositos la Entidad bancaria o Caja de Ahorros, bajo su responsabilidad, exigira la garantia a que se refiere la condicion anterior.
First - To ensure the return of the payments made plus six percent annual interest, by means of Contract of Insurance granted with an Insurance Entity inscribed and authorized in the Record of the General Sub-department of Insurers or by means of a Bank Guarantee issued by an Entity inscribed in the Record of Banks and Bankers or Savings Banks, if the construction does not commence or complete for any reason by the agreed deadline.
Second - Depositing the sums advanced by purchasers through a Bank or Savings Bank, which must be deposited in Special Account, with separation from any other funds belonging to the promoter, which may only contain funds deposited for the construction of dwellings. For the opening of these accounts or deposits the Banking institution or Savings bank, under its responsibility, will demand the guarantee to which the previous condition refers.
For too long developers and banks have hidden behind the Law and failed to comply with even the most basic requirements of LEY 57/68.
Garner - you say that you used the Lawyer who was recommended by the Agent...........and that their job was 'merely for the transfer of deposit monies to the relevant account'. That was not much of a job to pay them for. You could have transferred the funds yourself to the relevant account. If that was their only job then why did you need a Lawyer? Surely the Lawyer has a much greater responsibility than that. How much did the Lawyer charge you to send your funds to the relevant account and then fail to obtain your Bank Guarantee?
In this case it is the Lawyers responsibility to ensure that they do not send your deposit funds to the developer until they have sight of the Bank Guarantee. If the Lawyer sent your funds to the developer and failed to obtain your Bank Guarantee then you probably have a case against the Lawyer. You should claim off their legal indemnity insurance.
Kind regards
Keith
_______________________
LEY 57/1968
CLICK HERE FOR THE BANK GUARANTEES IN SPAIN WEBSITE
fpag@btinternet.com
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Thankyou for your comments, they are really helpful...
Keith, I am not very knowledgeable on legal matters in Spain (or the UK for that matter!), and I appreciate you taking time to comment in depth, thankyou. Rather naively we did not have our own solicitor when we sent the deposits to Spain, we sent them to the solicitor used by Palmera Properties, as the money went into the lawyers account I think, to be then sent to the builder, so on that point, I realise we did not have a solicitor ourselves.
We purchased with the intention of buy to turn, selling before completion. We were very gullible and borrowed to invest in 3 properties, two with Inroal, one with Palmera Promociones I think they were called. We lost all 3 deposits (and are still paying the loans!).
We have no money to appoint a solicitor to act for us, and furthermore, we do not know whether people have been successful in obtaining deposit refunds from either builder, it would be great to hear of others experiences. We would like to achieve closure as we cannot move on because of the what if's.
Thanks to those who take the time to read and comment, much appreciated. I realise we are not in isolation in this situation, and there are other people in this unfortunate situation, but hopefully some people have had success in getting their deposits back from the two builders mentioned.
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May I ask a general question here please.
To your knowledge is the developer allowed to access those funds deposited in the "Special Account" to pay off the loan to the Bank during the build process, or are these monies supposed to be ring fenced until the completion of the development/property in question?
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Palmera propertiesb and the lawyers did what they liked. They used the clients money to purchase more land and never put your deposits in safe accounts. palmera and the lawyers have pocketed all the money like the bunch of liers and thieves that they are.they are being taken to court on hundreds ( if not thousands of cases ) You will have more chance of winninng the lottery than getting any money out of them. they totally ignored any laws because they new the spanish legal system is a total joke and does not exist in protecting the cltents money, never has and never will. Regards Pat.
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Where does the true accountability IN LAW stand regarding the access and use of this special account? Who is ultimately responsible for ensuring that monies are not misused by the developer?
By law, does this special account have to be completely separate from the developer's bank that provided the original loan for the build?
What rights does the purchaser have if those special account funds have been used by the developer to pay off their loan to the developer's bank? Who is responsible by law for monitoring the use and access of these funds? How can you prove where the monies were spent??????
Was the original purpose of this Special Account to protect the purchaser? If I understand this correctly this appears to be a MAJOR area of justice that has been abused. Maria appears to have put the onus on the Banks if I understand her previous reply correctly (apologies if not)
" According to the most expert Professor on this field, banks should develop control activities as any use of the money for different uses is against this Law, whose rights are imperative and for the defence of the public order."
but where exactly does the law stand on this vital issue.
This message was last edited by ads on 10/11/2009.
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Dear Ads.
Yes, Banks in their most effective and due use of diligence need to secure that all money deposited in a special account is used for building purposes.
I would think further ( and according to the best legal doctrine in the case) and unless they can prove they asked expressly developer to open a special account and developer refused, if, out of facts, you can conclude that Banks were aware that money deposited in an specific account was for building off-plan, even not being expressly " special account" , Banks are liable for damages incurred due to this lack of diligence.
I am going home, I will see you tomorrow. Try to have a good night!
Best wishes,
Maria
_______________________
Maria L. de Castro, JD, MA
Lawyer
Director www.costaluzlawyers.es
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