Claims against Banks in Off Plan Projects

We are not a new firm or service launched on the back of the recent LEY 57/1968 Supreme Court Sentences. 

We began research into the liability of off-plan property developer’s banks in 2008 and filed our first Lawsuit against an off-plan property developer’s bank in 2011, which was won with a landmark sentence in 2012.

We’re recommended by the UK and Irish embassies, and many legal bodies within Spain.

We get asked a lot of questions about reclaiming off-plan Spanish property deposits, here are some of the most commonly asked questions:

What is the deadline for off-plan claims against banks and insurance companies?

The deadline depends on the sort of guarantee or insurance policy you have, as follows:

The time limit for an individual insurance policy is two years. For a guarantee, it expires in two years unless a claim is made against the seller. In this case, since the expiry no longer applies, the time limit changes to five years.

If there is no individual insurance policy or guarantee, the time limit will depend on court decisions. However, we recommend that the time limit is that stipulated for personal guarantees, i.e., two years. If there is no general insurance policy or guarantee and action is taken against the bank that received instalment payments, the time limit is five years. However, we recommend taking action against the seller within two years of non-compliance with the delivery date.

Note that if there is no building licence and no individual insurance policy or guarantee, in theory the guarantor or insurance company is not responsible even if a general guarantee exists.

What am I entitled to claim back?

You can claim all amounts paid off-plan, plus legal interest normally from the dates you paid to the developer’s bank account.  Legal costs may also be recoverable in some cases.

Are banks actually paying this money back?

Yes, they are. Banks are solvent entities that must comply with the law.  All banks with a firm court decision against them are refunding the claimants. Even if the developer’s bank no longer exists, action is still possible against the bank that has taken it over.

How safe is this action?

The Spanish Supreme Court has already interpreted the full text of LEY 57/1968 in favour of buyers/consumers, so the success rate is very high.

How liable are Spanish banks?

A recent supreme court ruling in September of 2016 has paved the way for further liabilities.

Does this apply if I bought more than one house?

It does, as long as you didn’t do so as part of your professional trade. It also applies if the contract mentioned these guarantees explicitly to secure the success of the business.

Do these actions involve Ocean View and Palmera Properties?

If you have made any payments to Ocean View or Palmera Properties, please also contact us as we are implementing a new strategy under Law 57/68.