An estimated 20,000 Irish investors could be eligible for a refund from uncompleted property developments following a ruling by the Spanish Supreme Court that banks are liable to repay deposits.
On December 21, 2015, the court upheld an earlier finding that investors who put down deposits on unfinished off-plan developments were entitled to have their payment protected by a Spanish bank guarantee. Judges held the developers and financial institutions were “jointly and severally liable” for the lost investments.
Investors were entitled to avail of the guarantee whether or not they requested one, and whether or not the developer provided one, the court said. They may even be entitled to a reimbursement with interest if the build was not completed to the terms of a written agreement. Spanish financial institutions have failed in a legal bid to overturn the ruling.
It is estimated that thousands of Irish buyers could reclaim lost investments
The Supreme Court said the banks had a duty of care at the time and they should have been issued with guarantees,
The court has held that when you put money in an account, the banks were supposed to protect that money. They weren’t supposed to access it unless the developer got as far as giving you a deed of sale signing over the ownership of the property. Banks didn’t do either of these things and they didn’t ensure people got these bank guarantees.
According to Condon, the value of deposits lost by investors was up
Typically buyers in Spain would pay deposits of up to 50% of the value of the property.
For buyers to take a case they must have a legal document proving the transfer of funds between themselves and the developer. Investments within the past 15 years are covered by the court ruling. It is estimated that cases could take up to 18 months.
We can represent you to take such a case and arrange Spanish legal representation for you . Many Spanish lawyers will agree a splitting arrangement with you whereby they will take a percentage of the monies recovered rather than simply asking for fee whether you win or lose
I’d you want us to help please contact us and will send you a questionnaire for completion
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