Courts say banks have to pay up

Buyers in failed off-plan property schemes can get their cash back

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Banks are being forced to return deposits that buyers paid for off-plan homes that were never built

A LANDMARK judgment from the Supreme Court (TS) is forcing banks to refund deposits which buyers put down on off-plan housing developments that were never built. A lawsuit brought by a client who purchased a property from the German promoter Berliner Bau Project La Siesta in Dénia, Alicante, in 2004 has led to the ruling.

The development was never constructed and company representatives did not turn up for the trial. This led to long court battle with Banco Sabadell to retrieve the deposit, with the court finally ruling that the €76,800 would have to be refunded by the bank.

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