2nd February 2012
60 overseas property buyers set for day in court
Up to sixty overseas purchasers of off-plan property are expected to appear as claimants at a court in Spain later this year.
The case brought by 47 international claimants against CAM Bank (bought recently by Banco Sabadell for 1 Euro) and developer Cleyton GES SL could be one of the most high-profile industry cases since the crisis began.
FINCA PARCS ACTION GROUP claim that none of their members received bank guarantees after purchasing plots on an inland development, close to the village of Agramón, 80km from Murcia between 2006 and 2007.
Speaking to Global edge, FINCA PARCS ACTION GROUP Chief Co-ordinator Keith Rule said:
“Of the three hundred plots sold, we believe bank guarantees were not issued on around 100. Many purchasers are taking individual action but our case focuses on 47 cases which includes buyers from the UK, Ireland, Dubai and Thailand”.
Under Spanish law (LEY 57/1968) bank guarantees are a legal right when purchasing off-plan.
A hearing which took place this week in a court in Hellin concluded that an initial four day trial should take place on 21 to 24 May.
In an unusual move, the defendants have asked all 47 claimants (and in some cases their spouses which makes the total 60) to appear at the trial in person rather than allowing third party lawyers to represent them through power of attorney.
Raising the stakes
The move raises the cost of the trial for the claimants and will also fuel international media attention.
Rule told Global edge he is unperturbed by the prospect.
“We will do everything possible to ensure all individual claimants are able to attend the trial" he said.
It will be a huge logistical exercise as we will need to organise flights, transport and accommodation in Hellín for the 60 of us, but this is just another hurdle that the group has been subjected to since paying our deposits in good faith 6 years ago”.