Tag Archives: Spanish


It is unlikely that many of our clients are familiar with Spanish Law, but, just in case there are one or two out there that have read about how legal cases can have a “sell by date” here, I’d better explain all this business about expiry dates that in Spanish law is called prescripción and in Common Law as “Statute of Limitations”

Under the Spanish Civil Code, a case can “prescribe” within a certain period if it’s not mentioned specifically by the law used.

Law 57/68 doesn’t mention time limits

So, something called “plazo general”, plazo in this case means deadline, is used.

The “Plazo General” has a shelf life of 15 years.

That’s all right then, still got a couple of years, I bought the “property” in 2006.

But hey, I’ve read that in 2015 (7th October) the Spanish Civil Code Article 1964 was changed and that for these types of cases, the “expiry period” was now only going to be for five years.

So, If I paid my money through the Spanish Banking System in 2006, with this new scenario my case was null and void back in 2011.

OH NO, NO… The change in the article carries something that it’s called a régimen transitorio (that more or less translates itself…). This means to give all five years starting 7th October 2015to to have another bite at the cherry if they haven’t done anything yet. So, your sell by date is now 7th October 2020.

Another bite at the cherry indeed… Nobody knew anything about this law until a few years ago. That’s why I like to call it the “great unknown”

So, there you have it, Ladies and Gentlemen, just under 13 months… And I still have four more Spanish/Moroccan developers to do.

There a lot a technical stuff here and I had my doubts if I really wanted to publish it and bore people to death. But I’d rather have that than someone coming to me because they had been given wrong and alarming information.

Talking of information… If you’d like to receive more, don’t hesitate:








  • The law is there to protect off-plan property buyers and their deposits.

  • It’s very short and precise, in black and white

  • If a developer wanted to sell off-plan they had to obey certain rules

  • It’s applicable to Morocco when there is a Spanish developer involved.

  • Developers should have asked their clients to transfer the money to Morocco and NOT to Spain.

  • They breached the law.

  • How can we prove it? – Didn’t I sign my contract with developer x?

  • We must prove to the court that the Maroc side was the Spanish one masquerading as a “Moroccan” developer.

  • How?

  • “A verdict for all verdicts” – What’s this? – We call it a “Matrix” – A sentence confirming all the “masquerading” that’s all.

  • How can you do this? – We’ve got the documents… Took long enough!

  • What happens if we win? – We create a precedent and THEN we’ll put your individual case through.

  • Who pays you at the end of the day? – The “unfortunate” bank – What happened in reality is that developers unconsciously passed the “buck” to their bankers, pity for them, under the law they (the bank) should have blown the whistle and insisted the money went to Morocco. Did the money go to Morocco? – We don’t know but it doesn’t look like it, otherwise…

  • Can I join that “matrix” case that you’re talking about? – If your money went to Spain and not to Morocco, it’s up to you. You don’t have to.

  • Don’t forget… There are TWO cases, one that will give us very good guarantees if we win and there is your individual case.

  • Why don’t I just wait until you win that case and then jump in? – Because it will be more expensive then.

  • And the Moroccan case we are all embarked on?

  • This goes on, business as usual. You will still get regular updates as up to now. This is SEPARATE AND PARALLEL.

  • Again… You don’t have to.

Melilla, 30st August 2019

My thanks to Bufete Salmerón in Seville who have made me aware of this possibility and provided the information and methodology. Bufete Salmerón specialise in Real Estate Banking. You will find there are few who will offer such solid knowledge and experience in this field.



As stated beforehand, we are operating as in common law countries, we have explained that the law permits precedent, in other words, a favourable ruling in the matrix case, will be the guide for winning the subsequent individual cases.

(One Example – Of Many) – Developer X

In the last two years we have established links between S.A.R.L’s (Morocco) and S.L’s (Spain). The extract of the documents we hold, that is the Moroccan Subsidiary’s full legal documentation for Morocco that will eventually be presented to a judge in Spain and hopefully establish the matrix ruling that will create precedent.

We also know that, at least in my experience, that considerable amounts of money invested in Moroccan Property, were indeed, channelled through Spanish Banks.


The procedure is divided in two stages:

  • 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)


Spain was one of the hardest hit countries during these years and specially it’s house market. Although the country was not officially “rescued” by the EU, a lot of money had to be injected into the banking sector, namely what were called “Cajas de Ahorros” or Savings Banks. These were usually public or semi-public sector institutions with a marked regional implantation and whose spirit was in theory to serve the public, in the sense of promoting social campaigns, and developing their, usually, rural environment.

Because of the consequences of the financial crisis, and the resulting and repeated failings of developers to deliver, the formerly forgotten law was revived with hundreds of people benefiting from it.

To be continued