Spanish bank ordered by Malaga court to return 186,000 euros paid by a family to a developer that went bust

The purchasers had made two payments amounting to 186,461.50 euros (to other banks but the business was later transferred to Santander). Because the transaction was never completed the contract was cancelled; however, their money was not returned to them.

In court, the judge said that under Law 57/1968 they had the right to be refunded because the payments had been made for a single property which was going to be used as a residence. This meant that the development company was obliged to return the money the family had paid, even though it had not provided them with a certificate to that effect beforehand, as it should have done.

“The purchaser who has paid sums of money on account should not be held responsible for the seriously negligent or fraudulent action of a developer which has failed to provide an individual certificate or guarantee,” the judge said.