Based in Orihuela, Alicante, Eurohouse was a subsidiary of the San Antonia Group. Their developments were all incredibly popular with British buyers and families who were looking to retire in Spain. These developments included:
- Fortuna Hills Golf Resort
- Fortuna Golf Gardens
- La Miradan
- Residencial San Pedron
- Residencial Miramar
- Residencial San Pedro del Pinatar
However, the most notable of these seven resorts was Fortuna Hills Golf Resort.
Developed and promoted by Eurohouse, Fortuna Hills was aimed at golf-playing Britons who wanted to retire in Spain but perhaps couldn’t afford something similar along the coast. Work started on Las Lamparillas, which was only one part of the resort, in 2007. This was intended to hold 3,737 houses, varying from detached to semi-detached. This, along with other developments in Fortuna, would have increased the population from 10,000 to 100,000 in that area according to Tim Spain.
Buyers put down sums of money up to 51,000 euros in order to secure their property on the development. Once the purchasers had paid this money, there was a legal duty to ensure that the amount paid was guaranteed by an insurance policy or bank guarantee.
So what happened to these developments?
In January 2009, Eurohouse called a halt to their Fortuna Hills development.
In a nutshell, the company collapsed in administration and went bankrupt after failing to pay debts worth 120 million euros. This was largely due to the economic downturn that was affecting many building and development companies in Spain at the time, and meant that the properties wouldn’t be completed.
Those who bought a property on the Fortuna Hills development are still owed about 30 million euros.
What can you do to get this money back?
If you lost your deposit when you bought your property in Fortuna Hills, then this letter can help you to understand how you can recover your deposit.
I bought an off plan property at Fortuna Hills and lost my deposit, can I get my money back?
Yes. If you are one of the buyers who lost your deposit in Fortuna Hills Golf Resort now is the right time for recovering your lost investment.
How can I get my deposit back?
Thanks to the Spanish Act 57/68. Also the new Judgments released during 2015 and 2016 have been strongly supporting the Law.
What is Law 57/68 for?
Spanish Law 57/1968 is a short but very important Law that was created and passed in the public Interest on 27 July 1968 specifically to safeguard deposits from purchasers who paid in good faith to developers to buy off-plan properties.
LEY 57/68 was introduced in the Public Interest to create general preventative standards to ensure the real and effective protection of funds paid in advance by purchasers and to ensure they received a refund in the event that the house building did not take effect.
This Law was created with the sole purpose of providing protection to property buyers by guaranteeing their deposits in the event that a builder went into Bankruptcy.
How does Law 57/68 works?
Under the LEY 57/68 Act, the banks and builders were required by law to sign General Insurance Polices, which state that the funds transferred for the deposit on a property must have been guaranteed individually.
In accordance with Law 57/68, banks and the developers must sign a General Insurance Policy, which should secure the investor investments individually. So once the client sent the deposit to the bank, the bank issued an individual bank guarantee so the buyer’s investment was guaranteed.
This means that in case a company had to go into liquidation, all the buyers would be able to claim their deposits back, plus the interest which it had gathered sitting in the bank for several years.
Why did I not receive a bank guarantee if law 57/68 obliged builders and banks to grant an individual bank guarantee?
When the banks realised that Fortuna Hills had financial problems they decided not to comply with the obligation to grant individual guarantees.
The banks made the decision to look the other way and not comply (due to the risk that they entailed) the obligation to secure the buyers deposits. Banks have criminal responsibility for not fulfilling the duty to secure the payments of the investors.
How can I recover my lost deposit?
Legal actions will be taken against the bank where your deposit was transferred as they had the obligation to guarantee the amounts deposited in their accounts individually. The chances clients have to recover their deposit are very high as most of the Judgments are on the investors’ side. Some banks have started to settle agreements before the Hearing Date, as they are aware about the small chances of winning the Case they have.
Do I need to receive an individual bank guarantee to recover my deposit?
No, you do not need an individual bank guarantee to recover your lost deposit.
The jurisprudence (Judges decision) has progressed and fortunately it has become clear that if there is a General Insurance Agreement signed between Fortuna Hills and the banks, an individual bank guarantee is not required as the Agreement covered all the creditors payments transferred.
Do I need to pay fees up front for proceeding with my claim?
There will be no fees for you to pay to us in advance. All we will take is any bank interest that we manage to negotiate from your claim when we recover your credit. So, there will not be any fees in advance and we commit ourselves to recover your full deposit. In the event we need to take any legal action our law firm will pay for Court and solicitors expenses.
How long my claim will take?
It is difficult to say as once a Case is presented in Court, a Judge will make the final decision. We believe this Case will not take more than 12 months.
Do I have a deadline to present my Case?
It is also very important to mention that the time for making a claim on this matter is 15 years from the date you made your first deposit payment so we highly recommend to proceed with your claim before this time ends.
Which documents would I need to start the claim?
In order to start proceeding with your claim we will ONLY need: 1) Copy of your purchase contract and 2) your payments records. In the event you do not keep any records of your documents we can always get in contact with your previous solicitor who acted on your behalf when you bought the property in Spain. Also, we can contact the Bank Administrator for this purpose.
What I need to do next?
Just a simple phone call or an email informing us that you could be interested in us helping you with the recovery. We will guide you from there. We are quite aware about how stressful this matter is for our clients so we take care of the procedure for you.
We deeply believe that this is the only chance clients have to recover their lost investments. Contact us and we will do the rest.
Ref: Recent Letter received from the Administrators of Eurohouse…
We have been informed by the bankruptcy administrators, that they have recently sent out letters to clients, which you may have received already.
Allow us to explain what the letter is referring to…
The letter is about canceling your actual purchase contract you have with the builder regarding the property you bought in EUROHOUSE. They have requested you to cancel your actual contract by Court.
Your credit is being highlighted and safeguarded by the Court, so that only you will have the right to claim, but the contract is still enforced, unless it is cancelled by you, which means that if the administrator sells the land to another investor in the future, the land and the right which goes with it including clients contracts will also be transferred.
If purchase contracts are not cancelled then, in the event that the project should go ahead sometime in the future, and are entitled to build, you will risk being called for completion of the purchase. That is why it is important to cancel the purchase contract with the builder and we strongly recommend it.
After the contract has been cancelled, we will request the bankruptcy administrators to provide us with any documentation (such as contracts or payments) necessary for claiming your credit.
For those clients who bought in FORTUNA GOLF we will be ready to start Court proceeding against the banks that received deposit from the buyers and have criminal liabilities for not keeping their investment safe. We will request a Power of Attorney once we have all documents, such as contracts and payment records.
For those clients who bought in PUEBLO DE LA SAL, we have requested the Court for a copy of the General Insurance Agreement signed between EUROHOUSE and the banks involved. Once we study the documents we will be in the position to decide how strong the case will be and the chances we have to win.
Please, let us know if you would like us to proceed on your behalf. We could assist you with the cancellation of the contract and contact the administrator on your behalf totally free of charge. We are Spanish Solicitor based in both the UK and Spain meaning that we are fluent in both English and Spanish, we can help you get your deposit back.