Spanish Property Deposit Refund
As you’ve found this post you’ll no doubt be aware that the ability to claim a Spanish property deposit refund is headline news at the moment. This stems from a recent (end of 2015) ruling by the Spanish Supreme Court. In this ruling it upheld Spanish banks duty of care to clients who placed money in Spanish bank accounts with a view to purchasing Spanish property.
In instances where this property was not delivered Spanish Ley 57/68 (law 57/1968) states that a purchaser is entitled to cancel the contract and obtain a refund from the bank in question. The banks, of course, disagreed with this interpretation of a law which dated from 1968. The Spanish Supreme Court ruling on the Spanish property deposit refund issue was, however, categorical. It found that banks were liable to provide the refund.
The Supreme Court went further than this in another ruling of the refunding of Spanish Property deposits. It found that even where there was no bank guarantee provided, the bank was still liable to provide a refund to its client. The Supreme Court found that under its duty of care to its client, Spanish banks and Cajas (building societies) should have ensured that a bank guarantee was provided for all off-plan property purchases in Spain. Essentially, it has said that, even in the absence of a bank guarantee, the bank is liable to provide you with a refund if your property was not delivered by the builder.
There is, however, a 15 year statute of limitations on starting the refund claim process. So don’t delay, if you paid money to a Spanish financial institution for a property that was never built visit our Apply Now page for information on how to get a Free Assessment of your case. We operate on a ‘No Win, No Fee’ basis so you will not be required to fund the case in advance.