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Thread: Bank Guarantee

  1. #1
    Join Date
    Jan 2005

    Default Bank Guarantee

    Dear Sir/Madam,
    We bought an apartment which should have been ready for Mar/Apr 05. For reasons we dont rightly know,( but have been told that the builder has not got the final permission to build) building has not started.
    There is a clause in our contract that gives the builder 6 months extra which takes us to Oct 05. Hopefully then we will be able to get our money back although we have heard that some clients have had to wait a further 6 months before this has happened.
    I had faxed a copy of our contract to a lawyer for some advice who said that it looked in order but to obtain a copy of the bank guarantee. We requested this through our agent who has just replied saying that the builder is refusing to furnish us with a bank guarantee. Are there any steps that we can take in this matter.

  2. #2
    Join Date
    Jul 2005


    Although the property, object of the contract, has not been started yet, you can request the cancelation of the contract as per failure to complete the property, once the agreed date arrives (March/April 05 plus 6 months).

    The developer has the obligation of securing the anticipated payments by means of a Bank Guarantee. However, if they refuse to provide the Bank Guarantee, this will not be a cause to stop you requesting the cancelation and the devolution of the amounts paid to date plus a 6% annual interest from the date you did the payments.

    If your claim is refused, you can refer to the Spanish Courts of Justice and denounce the fact that you are not provided with the Bank Guarantee to the Authorities.


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