If you were one of the thousands of people who paid and lost your deposit for an off-plan Spanish property that was not completed, make sure you make your claim for a refund before the deadline of 7 October 2020.
Who can make a Spanish Off-Plan Property Deposit Claim?
If you paid a deposit for an off-plan property in Spain which was not completed, you may be able to make a claim for a refund of the deposit paid (plus interest!).
To make a refund claim you need to be able to prove three things:
- The contract that you had with the developer;
- Proof of a payment into the developer’s bank account;
- Proof that the property was never finished in the time stipulated by the contract.
If this sounds familiar please get in touch to arrange a free, no obligation assessment of your case to determine if you would be eligible to claim and, if so, how much you are entitled to.
What is the Spanish law relating to deposits for unfinished off-plan properties?
Essentially, a series of Spanish Supreme court rulings have set out that the banks in which the defaulting property developers deposited the property purchasers deposit money, are liable to refund these deposits regardless of whether a bank guarantee was provided and regardless of whether the developer is insolvent/ bankrupt.
Recent rulings have seen a court in Malaga order a bank to pay out over €11millions euros in respect of over 200 claims from people who had put down deposits on off-plan properties that were never completed.
Our previous article Spanish Off-Plan Property Deposits to be Refunded by the Banks provides further information about the legal background explaining why it is possible to claim a refund for unfinished off-plan properties in Spain.
I have previously tried to make a claim against the Spanish developer – can I still make a claim against the bank?
Yes. Many claims were made against the developers who had usually become insolvent and who did not or could not pay the refunds even where a court case against them has been successful.
Spanish Supreme court rulings have set out that the banks in which the defaulting property developers deposited their customers money, are liable to refund these deposits regardless of whether a bank guarantee was provided and regardless of whether the developer is insolvent/ bankrupt.
What are the costs to make a Spanish-Off-Plan Property deposit refund?
Claims can be made on a no win, no fee basis so there is no initial cost to make a claim for a refund of your off-plan deposit.
The legal fees will be deducted from the amount recovered for you. If the claim is not successful, there is no fee to pay.
You should ensure that you instruct a reputable lawyer who specialises in these claims and agree the fee amount to be deducted from the amount awarded to you from the outset.
We are able to arrange a free, no obligation assessment of your case to determine if you would be eligible to claim and, if so, how much.
We can also recommend lawyers who will take your case on a no win, no fee basis providing you with the opportunity to recover your money whilst ensuring no further risk to you or your savings.
How long will it take to make a Spanish Off-Plan property deposit refund?
Court cases in Spain can take time and banks tend to appeal to try to frustrate the claims. However, overall the process can typically take about two years.
There is, however, a deadline for the date which the claim must be started depending on your personal circumstances. So, as long as your lawyer starts the claim for you before this deadline you will be in time, regardless of how long the case lasts thereafter.
What is the deadline to make a claim for a refund of Spanish Off-Plan property deposit?
The deadline to make a claim for a Spanish Off-Plan property deposit refund is 7 October 2020. Therefore, do not delay in finding out if you are eligible to make a claim.
Contact us on 01244 470 339 or at email@example.com and we will be happy to put you in touch with a recommended lawyer who can progress your claim.