Law 57/68 was enacted to protect off plan buyers of property in Spain against the risk of the developer failing to deliver the property according to the contract.
The law is very short and very precise. It distributes responsibility not only to the developer themselves but to their bank.
Any developer wishing to sell off plan, required their client’s deposits to be safeguarded by a bank guarantee or specialised insurance company issued in the buyer’s name.
A significant number of Spanish Property Developers expanded their business to Morocco in the late nineties under the umbrella of that country’s second property market push that was sponsored by their government.
The marketing of off plan properties in Morocco was directed from Spain itself and conducted by the mainframe Spanish arm of the group. This opens a possible application of 57/68 as a viability.
We have obtained all the legal documentation to prove that there is a link between the two companies. Something of an exclusive.
Other legal firms have had terrible difficult difficulties in obtaining these documents and had to forego the possibility of applying this law.
The proposed procedure has two gradients:
A general precedent ruling proving the existence of the link between the Spanish and Moroccan Operations (Matrix Case)
Use that precedent to submit individual cases in a second stage.
All buyers are invited to participate in contributing towards the cost of this master case whether they are NHI clients or not.
Upon a successful ruling (will take around a year) the cost of the individual personalised cases will be reduced considerably.
We feel that the final hearing will be in under two years.
IMPORTANT: This is a totally separate case to the one you may be involved in the Kingdom of Morocco.
A potential favourable ruling on the link between the S.A.R.L and the S.L (A general matrix ruling)
Individual case by case (Each client individually).
What is a Matrix Ruling: (In this particular case) It is a case won by the accusers at the first instance court that will create a precedent, Law 57/68 is one of those pieces of Spanish legislation that admits precedent. Spain is a civil law country and not Common Law, as for example the UK. However, in some instances the civil code admits precedent which in Spanish is called “jurisdicción” (jurisdiction has a different meaning under, say, English Law). What are we trying to achieve with this? – Very simply… We are trying to prove that the S.A.R.L (Morocco) and the S.L (Spain) companies are one and the same. If that ruling comes through, it will be taken into consideration by a judge when the time comes to take to court each individual case. According to my legal sources, if this is established there is an 80 to 90 percent chance that the defendant will win each individual case. The Matrix case will take less than a year to come through.
Armed with precedent, each individual client will take “their” bank to court in order to claim the deposits originally transferred and to win a compensation package. This is the second stage.
For the Matrix Case there is no need to send any personal documents, we will only require a signed mandate form and a Power of Attorney. Both documents we will prepare.
For each individual case: If you are an existing NHI client, we will have all the information on how you paid the developer. Eventually, you will need to notarise and apostille the following documents:
Sales Contract (French Version Only)
Proof of Payment (Very Important)
Power of Attorney (Spanish Version Only)
Copies of Passports (No need to Notarise nor Apostille this)