19 Sep 2024 12:49 AM:

The CAM Bank had subgrogated mortgages for the development and knew the initial deposit was for one of the properties.  They should have safeguarded the money and put the correct payment mechanism in place.  The SC has set the precedent now and the banks will use this defence, as they did against us.  The banks messed up and didn't do their legal duty and they've been let off the hook.

Thread: Bank´s liability on custody of off plan funds

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17 Sep 2024 12:29 AM:

Dear Maria

Thanks for answering questions on this.

Was there an actual process in place in 2008 that lawyers should have adhered to when sending initial deposits to developers?  In my case, half was sent directly to the developer and the other half was in promissory notes through the bank.  Should the bank have somehow been told that the initial deposit was for a property or was it common practice for lawyers back then to send the deposits directly to the developer? 

Do you know of any claims against lawyers due to deposits not going through a proper process that involved the bank? Or is this a new thing because of the Supreme court ruling?

Seperate to the above.  If a lawyer signs each page of a property purchase contract and doesn't say anything about the guarantor part being blank and fails to secure a bankers guarantee.  Would you say they have failed in their professional responsibility?

Thank You

Thread: Bank´s liability on custody of off plan funds

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05 Sep 2024 1:31 AM:

Thanks Ads

I've got all the documentation at home and the guarantor on the pre-contract was a company name (I think), not a bank.  I would suggest that due dilligence was not carried out due to the lawyer letting us sign, and they countersigned, each page of the final contract without having a guarantor written on there. 

Also, maybe the lawyer is liable for the original deposit, as they just paid the money into the developers account without doing a proper process or creating the proper paperwork to make it clear to the bank that it was a deposit for a property.  

Thread: Bank´s liability on custody of off plan funds

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03 Sep 2024 12:26 AM:

Update to our court case September 2024

After an appeal we have managed to get back 9.5K Euros out of the 19K we originally paid.  There was also interest of 6K that we paid the lawyers fees with. We only got the money due to the promissiory notes proving that the bank knew the 2nd deposit was for a property.  We lost the original deposit because there was no proof that the money sent from our original lawyer was for a property.  I did ask the original lawyer, before our appeal, for the correspondance regarding this deposit transaction, but they said all the emails would have gone by now (14 years later) and they'd have to speak to their IT people.  They didn't. They would have had the info somewhere because they were pursuing a criminal case against the developer for us for 12 years. 

One last rant.  The first thing I asked the original lawyer was "does the property have a bankers guarantee?" and they said yes, yes, no problem.  They even gave me a pre-copy of the contract, which named the guarantor etc.  They then let us sign and they countersigned the real contract with the guarantor part being blank!  They were negligent and incompetent.

Thread: Bank´s liability on custody of off plan funds

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08 Jul 2022 12:55 AM:

Hi Ads

As Maria said, I think it was because our original lawyer paid half of the deposit to one bank and then we paid the other half in promissiary notes to another bank.  We were going to have a subrogated mortgage from the developers bank loan, so they definately knew we where buying a property.  We weren't given a bankers guarantee either.  Its all been a bit of a farce really.  There is also a criminal case against the developer, which has been ongoing for 12 years.  The court in Granada didnt even know one of the developer's had passed away, so had to adjourn the case two years ago.  I dont hold any hope for that case either.

I don't hold any hope for the money paid by the original lawyer, but surely the money paid by me in promissiory notes should be paid back.  I will see what my lawyer says about an appeal.  

This message was last edited by deeleys on 9/3/2024.
Thread: Bank´s liability on custody of off plan funds

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