Our Law firm in Alicante can help if your Spanish property was never completed. Same if the developer never obtained the Occupancy Permit or Habitation Permit (Licencia de primera ocupación). If this is your case and your off-plan property in Spain is left unfinished or does not have the habitation permit, you can claim the refund of the deposits or payments on account made to the developer or builder by enforcing the bank guarantees in Spain.
This is a document issued by a bank or insurance company hired by the developer, promoter or builder. The document must to secure the amounts you pay for the construction of your new home, second residence or investment in Alicante, Torrevieja or the Costa Blanca area. Normally, after you make the payment, the developer requests the document guarantee for that and gives it to the buyer. Having bank guarantees is mandatory by law. However, many promoters do not hire a guarantee policy to avoid the financial or insurance company’s fees.
This requirement was introduced in 1968 through Law 57/68 as a response to abuses and scandals related to off-plan developments and stage payments.
A summary is:
Cc Lawyers 20 years Experience Enforcing bank guarantees Spain.
It serves as a form of insurance for property buyers, providing financial protection in case of various scenarios, primarily related to the completion of the property and the developer’s obligations. Here’s a breakdown of what is covered by this security:
Its primary purpose is to ensure that buyers can recover the payments they have made toward the property if the developer fails to fulfill their contractual obligations.
Interest: In addition to recovering the principal amount paid for the property, the security document should also cover any accrued interest on the payments.
It’s important to note that while the law sets out minimum requirements for bank guarantees, the specific terms and conditions of each one may vary depending on the developer and the agreement between the buyer and the developer. Buyers should carefully review the terms of the security received provided to them to ensure it meets their needs and provides adequate protection.
When hiring our purchase service for an off-plan home, you will get the assurance that we will make sure that the developer or builder gets them so you are protected in case the home is not finally built so you do not loose all the money you put into the investment. Additionally, consulting with legal experts or professionals familiar with Spanish real estate laws is advisable to navigate any potential issues or claims.