Bank Guarantees Developers Responsibility??

[johncleasby]

I have read on several occasions that it is not the responsibility of the Lawyer to issue Bank guarantees but that of the Developer. I have also read that a lawyer has no duty of care towards a buyer with regards to the authenticity or legality of a bank guarantee as it is the responsibility of the developer. I am somewhat confused,it was our lawyer who sent the guarantees to us requesting signature not the developer. Are we saying that lawyers have absolutely no responsibility in law to establish enforceability,legality of a guarantee and most importantly where the buyers money will be deposited for security.I take it that when a lawyer pays the monies direct to the Developer that also is no longer his responsibility

[Patricia]

John,

The lawyer´s responsibility is to request the bank guarantee from the developer, check it is correct and that it meets the legal requirements. If the lawyer requests it but the developer fails to give it, it is not the lawyer´s responsibility, though he/she must let the buyer know that the guarantee has not been provided and that the investment is not safe.

Regards,

[john cleasby]

Patricia thanks for your reply,but what happens when the lawyer requests the buyer to sign a bank guarantee which is fraudulent and unenforceable,surely he must be responsible for not ensuring its legality.

[Unregistered]

John,

The lawyer´s responsibility is to request the bank guarantee from the developer, check it is correct and that it meets the legal requirements. If the lawyer requests it but the developer fails to give it, it is not the lawyer´s responsibility, though he/she must let the buyer know that the guarantee has not been provided and that the investment is not safe.

Regards,

Patricia,thanks for your comments.when you say check it is correct and that it meets legal requirements,what do you mean?

[Patricia]

Hello,

I mean observing the legalities in connection with the obligation from the developer to grant guarantees:

Law 57/1968, of 27th July (https://www.boe.es/buscar/doc.php?id=BOE-A-1999-21567), and Law 38/1999, of 5th November (http://www.boe.es/boe/dias/1999/11/06/pdfs/A38925-38934.pdf), of Ordenación de la Edificación.

Regards,

[john cleasby]

Patricia,thanks for your reply.However if a lawyer completely ignores the signed purchase contracts and gives his clients deposits directly to the developer,surely that is not correct,and if the developer then goes bankrupt should the lawyer be held accountable????

[Patricia]

Hello John,

We cannot advise further without having checked the documentation, however, every time a reservation contract is signed and the 10% has been paid for it, the lawyer pays that amount to the developer based on logic, as it is used to fund and pay the building works to continue.

Regards,

[john cleasby]

Patricia, thanks for your response. If the purchase contracts state that all monies paid by the buyer shall be placed into a separate Bank account to which the Developer will not have access to. if the monies are then paid directly to the developer what protection does the buyer have????

[Patricia]

Dear John,

I am afraid we are unable to interpret your words or express an opinion about your interpretation of the contract. In this case, It is crucial to check the documentation beforehand so we can answer your questions.

Regards,