What is Ley 57/68
Essentially the answer to ‘What is Ley 57/68?’ is that it is the law used to spark the refund of property deposits placed on uncompleted properties in Spain. These refunds can be claimed from the financial institution with which you deposited your funds for the purchase.
According to Spanish Law, specifically Ley 57/68 (it is officially Ley 57/1968 from the year in which it was introduced) Article 1.2, money for the purpose of purchasing a Spanish property off-plan
must be deposited in a Special Account, with separation from any other funds belonging to the promoter, which may only contain funds deposited for the construction of dwellings.
It goes on to state that for the opening of these accounts or deposits a banking institution or savings bank (Caja) as part of its responsibility, will demand a bank guarantee to which the previous condition (Article 1.1) refers.
In most cases banks or cajas did not demand that such guarantees were implemented by Spanish developers. Therefore, in a landmark ruling in 2015 the Spanish Supreme Court found that Spanish financial institutions were liable to refund deposits paid for properties which were never completed.