We’ve all heard horror stories in the news about individuals that have lost deposits on their house abroad.
Often, the sum of money is substantial, leaving people devastated and desperate to get back what is rightly theirs. There has been uproar in past years, particularly in Spain when people have lost deposits on properties that were not fully developed, leaving them massively out of pocket and with piles of debt to worry about. Luckily things have changed recently, so for more information about this and to find out what to do if you have lost your deposit, read on.
What has changed with the law?
Under Spanish law developers and builders who receive deposits are now obligated to place the money in a separate account and provide a bank guarantee. This means that buyers can secure a refund if their property is not completed. However, this law was not always observed and when the crisis took hold in 2008, developers had not set aside enough cash to repay customers.
In December last year, the Spanish Supreme Court ruled that banks which held deposits are equally liable for refunds. If banks appeal and refuse to make the payments, the cases could drag on a further 18 months. Lawyers predict that the whole process could end up costing banks £15bn, excluding interest owed and legal fees.
How can you go about retrieving a lost deposit?
If you are owed money due to a lost deposit, you’ll need to take serious and immediate action in order to retrieve it back. Securing a lawyer and taking the case to court is going to be your best bet, but you need to ensure that you are financially able to back this up. Depending on the complexity of your case and how much money you are trying to get back, costs will vary.
It’s important to note that claims can only be brought before courts once, which unfortunately means that if you are unsuccessful you won’t be able to fight for your deposit again.
Each case also has to be fought individually, so if you have more than one deposit that you are hoping to get back you will have to deal with them separately.
Seek help from us
EU Property Solutions acts on behalf of individuals who have found themselves with deposits tied up in unfinished developments. Through careful planning and consideration, our team of trained and experienced negotiators can help pull people out of the red and find a successful resolution when it comes to reclaiming a lost deposit on an unfinished development.
The specialist legal team at the firm offers completely impartial and independent advice while eliminating language barriers, guaranteeing a smooth process from beginning to end and ensuring that you get the outcome that you want and deserve.
For more information about EU Property Solutions and the work that we do, visit our website at: http://eupropertysolutions.com/