PRESS INFORMATION - media enquiries to Sam Dabbs on 07711 672893
People in the process of buying a property off plan from the debt-laden Spanish developer Martinsa-Fadesa should contact the companyβs administrators as soon as possible, warns law firm DWF.
Antonio Guillen, a Spanish lawyer working for DWF in the UK, says buyers have 30 days to inform the administrators and the court if they wish to be included on list of creditors. They should also try to ascertain through their lawyer if the developer has a bank guarantee in place to cover their deposit or any other sums they have already paid towards the price of their property.
Martinsa-Fadesa, one of the largest developers in Spain and with projects in several countries, filed for voluntary insolvency last week after being unable to get further finance from its bankers. The company owes more than five million euros.
Around 12,500 families, including hundreds of Britons, are believed to have put money down on an off-plan property with Martinsa-Fadesa and now do not know whether it will be completed or if they will have their money refunded.
Antonio Guillen says: βAnyone who believes they are a creditor of Martinsa-Fadesa β and that includes purchasers of properties off-plan or owners of properties that have not been fully completed - should inform the administrators and the court as soon as possible. This has to be done within 30 days of the insolvency arrangement being published through official channels. Under the Spanish Insolvency Act all creditors should receive a personal communication from the administrators but this does not always happen.
βIt is advisable for anyone affected to contact a lawyer versed in Spanish insolvency law and provide them with proof of payment. The lawyer will ensure that the necessary papers are in place for the purchaser to have their payment recognised by the court and the administrators.
βThe lawyer will also ascertain whether the developer has a bank guarantee in place. This is a requirement under Spanish law although not all developers have been complying with it. The purpose is to ensure that if the developer goes into liquidation and the property is not finished, a guarantor, usually a bank, will give purchasers their money back plus interest.
βThis document is extremely important as it could make all the difference between buyers losing all their money and getting a refund.β
Representatives of Martinsa-Fadesa have stated that the developer intends to continue trading and complete all the off-plan properties although it is too early to gage whether this will finally happen.
Antonio Guillen adds: βAs usual, cash is king and if Martinsa-Fadesa wants to escape the situation it is in at present it will have to sell off assets, generate more income and find the necessary finance to re-float the business. In the meantime buyers should ensure that they have all the necessary documents to prove their rights and payments, including bank guarantees, and seek legal advice to assess their options until more information is available about the future of the developer.β
Notes to editors:
DWF LLP is one of the fastest growing regional law firms in the UK. With over 880 people based in Leeds, Liverpool, London, Manchester and Preston, DWF provides a range of services grouped under the following practice areas:
Banking & Finance
DWF has developed extensive sector-specific expertise in a number of areas including: automotive, education, retail & leisure, legal expenses and food and resourcing. Further information on DWF is available via www.dwf.co.uk.
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