Recovering money lost in off-plan property deals
10 Feb 2016
It is welcome news from the Supreme Court in Madrid that people who bought from a developer should be compensated. So how did the situation come about? The problem started when many people were attracted to buy off plan during the property boom.
Many people were attracted because prices were so good and they had the chance to choose the interior design. However, some unscrupulous developers did not have the necessary planning permission or were caught out when the bubble burst and could not complete the development.
How can you avoid being stung in the future? When buying any property in Spain it is always advisable to consult a solicitor with Spanish land law experience who can guide you through the legal processes and flag up any potential legal problems. Also take a look at the Gov.UK website which adds that you “should also check that your lawyer has professional indemnity insurance and not sign any papers or hand over any money until you have taken independent legal advice.”
It is understood that banks or insurance companies which issued policies or guarantees on off-plan properties are liable and must pay back the money with interest. For those whose banks did not do due diligence on promoters ensuring they had insurance and guarantees as required by the law, they can also be pursued through the courts if necessary.
If you have lost money through buying off plan or are involved in other property disputes, contact Golden Leaves on 966 493 082.