Build off plan in Spain? Concerned about not having a bank guarantee? – Comaskey Properties

Look how we resolved the issue for our Belgian buyers this week!
So, recently we had a buyer looking to invest in a new build property near to Guardamar. All went well, he saw the property, put a deposit down, recruited a lawyer in Torrevieja and suddenly a week later it all fell apart. The builder told the lawyer (yes, we know, the buyer should have been using Spanish Solutions in the first place!!) that he will issue the bank guarantee two weeks after the next stage payment. This means our buyer was at risk of losing his 80,000€ if the builder went bankrupt before the guarantee was received. The Torrevieja lawyer was not too concerned or maybe did not see the danger to the client. Either way, we employed the services of Silvia in Spanish Solutions to talk to the bank for us and here’s how it went.

From: S [mailto:[email protected]]
Sent: 17 November 2016 15:26
To: a***@ban*****
Subject: bank guarantees

Hi A***o,

We have a question for you, about a problem that we would like to solve for some clients of ours:

We have clients who wish to buy off the builder but this builder in particular takes some time to issue their bank guarantee to them.
The clients want to have the bank guarantee on the same day they put their funds. In this particular case we are speaking about a payment of 80.000€.
So to solve the situation, Ian was suggesting we provide the bank guarantee for that period of time, until the builder issues the final one (2-3 weeks).

Therefore, how does it work nowadays with bank guarantees?
What would be the requirements?
And how about costs?
How quickly could it be done?

Thank you very much!
Kind regards / Saludos cordiales,

At this Stage Ian weighed in….

De: Ian
Enviado: jueves, 17 de noviembre 
Para: Silvia ; a****o
Asunto: RE: bank guarantees
Exactly Silvia.
Clients are unhappy handing money over to a builder in case they go bankrupt before the bank guarantee is issued by the builder. I can totally see their point.
We will provide them with this security for the couple of weeks it takes for the builders to cover it. IT is only fair for our buyers that they are totally protected from the type of thing that happened in the days of the Spanish Property boom. (and bust).

What if the builder does go bankrupt in the two weeks before the guarantee is issued? Is the bank or me liable for this amount?
If we can do this, it will be a huge selling point and will get us even more credibility with our foreign buyers.

Next correspondence is from the actual bank who issue the guarantees…

From: A****o
Sent: 17 November 2016 17:07
To: Ian ; Silvia 
Subject: Re: bank guarantees

Dear Mr. Comaskey and Silvia,

First of all, if a builder is offering a bank guarantee for the deposits made by his clients he must have a credit approved to hand over the document in exchange of the money at the precise moment he is getting paid. It is the first time I hear that a builder is issuing the bank guarantee two weeks later. This is no guarantee at all.

On the other hand, if you provide your customers with that guarantee for this lapse of time, as you say, in case the builder runs away with the money you will be responsible for it, not the bank.

I do not think this is a good idea unless you really trust the company.

Best regards.

Suddenly this is not going well!!!

De: Ian 
Enviado: lunes, 21 de noviembre
Para: A***o; Silvia 
Asunto: RE: bank guarantees
Thanks A***o,

So its impossible to “buy” a bank guarantee and effectively we are guaranteeing this money ourselves? We will do it when we are totally confident of the financial situation of the builders. Is there a way to insure this money through the bank, in the unlikely event the builder goes bust? Are buyers of new build property aware that estate agents are not protecting them?
Best wishes,


From: A***o 
Sent: 21 November 2016 12:44
To: Ian  <
Cc: Silvia <
Subject: Re: bank guarantees

Dear Mr. Comaskey,

When talking about bank guarantees, it is always like this. Banks give a document to guarantee the amounts on behalf of the clients but, if the guarantee is executed, the money is taken from the bank’s customer, in this case, your account.

As far as I know, there is no other way to grant the money.

Best regards


So, we hit another road block and still our buyer is not protected. It was time to bring in the real expert- Pedro Molino, our barrister and in-house solicitor in Spanish Solutions.

De: Ian 
Enviado el: miércoles, 23 de noviembre 
Para: pedro;  Silvia 
Asunto: FW: bank guarantees, new developments, a situation

Hi Pedro,

We have a situation where you can help we hope. Our Belgian clients are concerned about the delay between paying the money over to the builder and having the bank guarantee in our hand. The developer Actavia in particular is guilty of this. Have you had any dealings with them? We have one client who will buy a property there from us today, if we can come up with a way of absolutely guarantying the buyer they will not lose their funds. XYZ were representing the buyer, I’m hoping the problem is that the developer did not want to work with them and were just making things difficult. (Although they have a reputation for being a difficult builder too).
Going forward however, I thought the bank could provide us with bank guarantees if we just paid them a premium- It appears this is not the case.
Any simple ideas jumping out at you? When you are around La Zenia next can we take 5 minutes for a quick chat on this?
All the best,


So can Pedro solve the issue?? Absolutely, he can!!!
Hi Ian:
Yes, I think I can help.
We have had this situations many times in the past with different builders. Builders and Banks are always difficult and they don´t like helping clients. Typical Spanish.
The solution is quite simple actually.
After the Supreme Court resolution in relation to Bank Guarantees, every single bank has the obligation to guarantee the money paid into a builder bank account. Therefore, before transferring the money, you should contact the bank officially (legal letter, burofax,…) informing that the client is transferring the money to buy a property from the builder. You have to specify all the details (name of client, builder, property,…..)
Once the Bank acknowledge the letter the money will be automatically guarantee although the individually bank guarantee is not issued yet.
I hope this help

Pedro Molina López- Solicitor/Abogado
Molina Solicitors Abogados

And just like that the situation is fixed- Our client gets the House they want, the builder gets the deal, everyone is protected and its a win/win/win.
We think this sort of thing shows the advantages of working with a real estate team like Comaskey if you are buying property on the Costa Blanca. Most other agents cannot fix a situation like this, and are either knowingly or unknowingly exposing their buyers to great risk. We involve our legal team in all our purchases and other agents cannot do this basically becuase unlike us, they dont have a legal division!
If you are thinking of buying new, resale or comercial property, we are the agent to speak to first. Another reason why we can justifably say, “Finding the right agent is just as important that finding the right House”.
If you wish to find out more about how we can help you, your family, friends and clients, Please email Claire; [email protected]
Not only can we help you legally like no other estate agents in Spain, but we save you money too. In 2016 we ran our “Summer sales event” where we were giving away 100,000€to our clinets in cash back, discounts and special packages.
Are you interested in saving money? Wouldnt you like to be the one who can say they paid less for your house in Spain than anyone else on your Street?
Get in touch today and we will make it happen,
[email protected]

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