The judge in Cantabria ruled that the bank, Caja Cantabria, had failed in its duty and ordered it to give the client a full refund of both deposit and staged payments for a unit on an off-plan development which was purchased during the boom but never completed.
The court disregarded small print which stated the bank guarantee had expired, deciding that guarantees could not expire whilst the purchaser still had no home to show for their money.
Although bank guarantees were seen as the ultimate in security by Spanish property investors, we’ve uncovered many cases where the guarantee has been promised but not delivered and everyone from the bank to the lawyer, notary to the developer has seen fit to relieve themselves of responsibility for the failure.
This landmark ruling shows that the Spanish legal system is prepared to apportion blame and will not allow property scams to be brushed under the carpet. It gives us added confidence going forward as we work on behalf of our out of pocket clients
Sadly Spanish Law is not based on precedent in the same way as English Law, but undoubtedly other courts in Spain will take this verdict into account when faced with similar cases of which there are many.
share on: facebook
No comments:
Post a Comment