forced complete

[Unregistered]

At the initial meeting with our lawyer when we paid our deposit for a 'flipped' property our lawyer repeatedly told us that our money was safe. He smiled indulgently at my repeated questions regarding the security of our funds and kept telling us there was nothing to worry about and in any case the Bank Guarantee would ensure our money was safe. He explained how the Bank Guarantee worked and even offered scenarios in which we might have to claim if anything should go wrong. They also asked us ti give them power of attorney for the purchase of the property as this would mean we would not have to travel back and forth from Spain to sign the contract etc.,
Tired of waiting almost four years for completion and after repeatedly asking our lawyer to seek the return of our deposit under the terms of the 'Bank Guarantee', (to which their repeated reply was that it would involve a very expensive court case because the bank said, ' Only when a judge says we must pay back the money will we return it to the purchasers') we decided to change lawyers.
When we received our file from them there was no Bank Guarantee. I asked them if they had misplaced it and their reply was, 'The developer failed to do his duty and supply one'.
My Questions.
1.Should I sue the lawyers for gross negligence??
2. What do you think would be the outcome?
3. What would be the approximate cost.
4. Where would I find another lawyer with the ability to do this?
5. Would I get back my deposits and also the money that I paid the lawyer for a) Power of attorney ,b) conveyancing services, plus interest and damages?

Thank you.

[Unregistered]

I guess you don't have the answers and cannot help me.
Or perhaps you do not have the stomach to sue a fellow lawyer. Whatever the reason....Thanks.

[Lawbird Lawyer]

I guess you don't have the answers and cannot help me.
Or perhaps you do not have the stomach to sue a fellow lawyer. Whatever the reason....Thanks.

Patience is a virtue.

[Unregistered]

Thank you very much for your comprehensive answer.
I now see why the lawyer did not trouble himself to persue the developer for my Bank Guarantee.
He arrogantly regarded providing it as the developer's duty and knew that if anything went wrong with the transaction the blame could be pointed solely at the developer.
He was doing the minimum work for his fee, and he was protecting his own interests first...not mine.
So why did I pay him for PoA? He was paid to act on my behalf and protect my interests.
How does a lawyer aquire the swankiest suite of offices in Marbella when he is so negligent with his clients affairs??

All I wanted was a holiday home in the sun to spend our winters in a warmer climate.
Now, like thousands more,we have lost our money with no chance of being able to afford another property. All our hard work and dreams have come to nothing.
Just one more question. Do you know how many Spanish citizens been caught up in the problems caused with the lack of or failing to produce bank guarantees or is it predominantly affecting foreigners?

Yes, you're right about 'Patience'. But I think that even a saint's patience would be tested when trying to purchase property in Spain.

[Lawbird Lawyer]

Dear Sir,

I fully understand your predicament, however no distinction is made between foreigners and Spanish as you hint, they've both been treated/mistreated alike. I suggest you lodge a complaint as well in the Bar Association of which your lawyer is a member, you will have to file it in Spanish. Many people never get to file these complaints in despite of being aggravated and the matter just drifts by oblivious to the Bar Association.

In fact if you follow the link I provided you in my post above to the article on bank guarantees there's a further link to a newspaper article in which the Bank of Spain itself highlights this problem. I believe there's a petition that is circulating over the net on the matter. Perhaps you should join it.

In any case, even if you don't have a bank guarantee and providing your developer hasn't gone bankrupt you can still pull out due to the late delivery in handing over the property and apply/litigate for a refund on your deposits. Please read this other article of ours.

Suing a developer on grounds that he failed to deliver a BG is a bad idea in our opinion as you are bound to lose. Please read this other article. It makes more sense that your appointed lawyer seeks administrative sanctions imposed on the developer for lack of compliance in issuing BGs following Law 38/99. However, this only allows for a sanction, you will not recover your funds on following this procedure. Developers can be fined up to 25% penalty of the amounts they should have guaranteed:

Building Act: Law 38/99

DISPOSICIÓN ADICIONAL PRIMERA. Percepción de cantidades a cuenta del precio durante la construcción.

La percepción de cantidades anticipadas en la edificación por los promotores o gestores se cubrirá mediante un seguro que indemnice el incumplimiento del contrato en forma análoga a lo dispuesto en la Ley 57/1968, de 27 de julio, sobre percepción de cantidades anticipadas en la construcción y venta de viviendas. Dicha Ley, y sus disposiciones complementarias, se aplicarán en el caso de viviendas con las siguientes modificaciones:

La expresada normativa será de aplicación a la promoción de toda clase de viviendas, incluso a las que se realicen en régimen de comunidad de propietarios o sociedad cooperativa.

La garantÃ*a que se establece en la citada Ley 57/1968 se extenderá a las cantidades entregadas en efectivo o mediante cualquier efecto cambiario, cuyo pago se domiciliará en la cuenta especial prevista en la referida Ley.

La devolución garantizada comprenderá las cantidades entregadas más los intereses legales del dinero vigentes hasta el momento en que se haga efectiva la devolución.

Las multas por incumplimiento a que se refiere el párrafo primero del artÃ*culo 6 de la citada Ley, se impondrán por las Comunidades Autónomas, en cuantÃ*a, por cada infracción, de hasta el 25 % de las cantidades cuya devolución deba ser asegurada o por lo dispuesto en la normativa propia de las Comunidades Autónomas.

I trust the above helps you.

[Suzanne]

The link posted above under 'Petition' is only for those who have Bank Guarantees which are not being honoured. It sounds to me that the 'Guest' who has posted does not have a BG after all.

I hope it is in order for me to post the details of a Petition which has been set up for Everyone who is having problems with their 'property purchase' in Spain.

Many who have signed were told by their original lawyer that they had a bank guarantee, in accordance with Spanish Law, only to find that after all they do not have one. Some were told they don't have a BG because they "didn't pay for it". There should be no charge to the purchaser of the property for this BG.

Our Petition is also compiling a Lawyer Complaints Document, as many of us have had to change lawyers - some three times before they found a reputable lawyer who upholds the ethics & principles of their profession. These complaints are serious and need to be addressed.

I was able to deliver a letter about Our Petition by hand to 10 Downing Street yesterday. Initially I was told that this would not be possible, but after some perseverance and discussion (etc!) I was allowed through the iron railings & the letter was delivered. Our Petition will be handed in to Gordon Brown, the Prime Minister, early in the New Year.

Thankfully, many of us are now with a reputable and diligent lawyer whom we can rely on. Thanks to belegal.com for this excellent website & its very informative articles

As I am a new posted, am unable to post the website details but you should be able to find it by googling spanish property scandal petition.

[Lawbird Lawyer]

Dear Suzanne,

You do not need to ask us for permission, you should already know you are free to do it.

The link:

http://www.spanishpropertyscandalpetition.co.uk/

Perhaps it would be a good idea if you opened your own specific thread on the matter to raise awareness on the petition.

With kindest regards

[Lawbird Lawyer]

When we received our file from them there was no Bank Guarantee. I asked them if they had misplaced it and their reply was, 'The developer failed to do his duty and supply one'.

My Questions.

1.Should I sue the lawyers for gross negligence??
2. What do you think would be the outcome?
3. What would be the approximate cost.
4. Where would I find another lawyer with the ability to do this?
5. Would I get back my deposits and also the money that I paid the lawyer for a) Power of attorney ,b) conveyancing services, plus interest and damages?

Thank you.

Dear Sir,

Further to your queries,

1. You may sue the lawyer if you wish alleging professional negligence and claiming on his professional indemnity insurance.
2. We just wouldn't know as it depends on the judge to rule on this matter. However, Law 57/68 stipulates penalties for the developer that fails to comply with this not for the lawyer as not everyone will hire a lawyer to do the conveyance.
3. It depends on many factors, we are unable to give you a general answer. In any case your lawyer should always provide you a Letter of Engagement with a full breakdown of legal fees and expenses as we do. If you don't agree to it, you don't sign it.
4. Propose your case to any lawyer. They must be proficient in litigation however.
5. The outcome will vary. In any case if you claim form thier professional indemnity insurance you could recover the deposits plus compensation and interests depending on the judge's ruling. I doubt you would be able to recover the POA and their professional fees.

[Unregistered]

At the initial meeting with our lawyer when we paid our deposit for a 'flipped' property our lawyer repeatedly told us that our money was safe. He smiled indulgently at my repeated questions regarding the security of our funds and kept telling us there was nothing to worry about and in any case the Bank Guarantee would ensure our money was safe. He explained how the Bank Guarantee worked and even offered scenarios in which we might have to claim if anything should go wrong. They also asked us ti give them power of attorney for the purchase of the property as this would mean we would not have to travel back and forth from Spain to sign the contract etc.,
Tired of waiting almost four years for completion and after repeatedly asking our lawyer to seek the return of our deposit under the terms of the 'Bank Guarantee', (to which their repeated reply was that it would involve a very expensive court case because the bank said, ' Only when a judge says we must pay back the money will we return it to the purchasers') we decided to change lawyers.
When we received our file from them there was no Bank Guarantee. I asked them if they had misplaced it and their reply was, 'The developer failed to do his duty and supply one'.
My Questions.
1.Should I sue the lawyers for gross negligence??
2. What do you think would be the outcome?
3. What would be the approximate cost.
4. Where would I find another lawyer with the ability to do this
Thank you.

Hi, I am in the same situation as you. I have now realised how corrupt the Spanish Law is. I cannot see a way out of this. Unless of course you are prepared to spend nearly as much again. That is what my solicitor is suggesting. I did have a bank guarantee, but it expired within 6 months of the original completion date. My solicitor could have renewed it, but she just did nothing at all. I did not know this, until too late, I cannot see the point of having a bank guarantee that expires just when you need it. I think the only way forward is to get together (there are thousands of us in the same situation) and fight the system together. What do you think?