Pilar Alonso from AH Solictors
The increasing attention on the number of British investors who have lost thousands of pounds in failed Spanish property purchases over the last 15 years has prompted the BBC to cover this on the Breakfast news this morning.
The offices of AH Solicitors were contacted by the BBC yesterday to discuss how recent changes in Spanish legislation has opened the doors to thousands of investors potentially reclaiming deposits they believe were lost forever.
This coverage is extremely important and we welcome the BBC’s involvement. To view the BBC’s coverage please click here.
Over the last few years AH Solicitors have helped hundred’s of British investors reclaim lost deposits but there are thousands that are still unaware of recent changes to the law and supreme court judgements won by AH Solicitors that will allow them to seek compensation from the banks.
If you or someone you know has lost money on a failed property in Spain then please click here to start your claim.
Buying a property in Spain is safe as Spanish Act 57/68 27 July (1968) has been protecting investors until January 2016 when the new Law 20/15 ( which replaced the old law) has started being in force.
This law was created with the sole purpose of providing protection to investors who bought properties in Spain in the event that a builder could go into bankruptcy. Under Spanish Act 57/68 builders and banks were under the obligation of signing a General Insurance Policy in order to cover and guarantee all the payments made by the property buyers when they transferred the funds against a property investment.
According with Act 57/68 article 1.2 says that it is responsibility of the bank where the deposit was transferred, to ensure that a bounding account it is opened to cover the deposit and the Banks must issued an individual Bank Guarantee which would secure covered safely the clients investments. Law 57/68 is very clear and provides absolutely protections to the buyers. It is not the Law 57/68 that has failed. The failure is that on the authorities whose duty it was to uphold the rule of the Law.
When a client buys a property in Spain and the builder goes into liquidating the bank takes immediately responsibility on the investment. If the bank doesn’t refund the funds clients investments this is a direct contravention of the Spanish Act 57/68.
Banks should have provided individual investors with an individual bank guaranteed but when they released that the builder started to have financial problems they refused to keep providing client with an individual bank guarantee.
The actual scenario is not as clear as it should have been. Banks are avoiding responsibilities under a considerable amount of excuses such a guarantee expiration or lack of individual bank guarantee (even if they should have provided them). However, the High Supreme Judgments (January, June and September 2015) has finally condemned banks to pay back investors who did not hold an individual bank guarantee as they should have provided client with them as the General Insurance Policy was signed by the bank and by the builder. According with the Supreme Court, the banks and the developer signed a General Insurance Policy which should have secured the investor’s investments individually.
The amount of British citizens who are affected by this situation is countless. In 2005 every 10 people who bought properties in Spain (mediterranean coast) , 5 buyers were British. Thousands of them have unfortunately disappointed by Spanish System. Companies like AIFOS sold 10,000 properties but clients never completed. HERRADA DEL TOLLO, SAN JOSE INVERSIONES, TRES MOLINOS, ALMANZORA COUNTRY CLUB… Big properties developers with a huge amount of properties without being completed. So many dramas behinds… Again, the amount of clients are countless.
They have now a chance to recover what they lost more than 10 years ago now.
It is very important that client knows two things…