If you were affected by this subject it is of the upmost importance that you claim as soon as possible.

Construction companies or developers of permanent or temporary family residences that receive advance money before starting or during construction must meet the following requirements:

  • First. They must ensure, in the case that the construction is not started or is not completed within the agreed term, that the money paid upfront is returned plus the interest. This must be done via an insurance contract by an authorized insurance company or by a bank guarantee.
  • Second. The money received must be deposited in a special type of a bank account, separate from other funds belonging to the promoter and that can only be accessed for expenses related to the construction of the dwellings.

The contracts between the promoter or constructor and the client in relation to the dwellings in which the delivery of anticipated amounts of money is agreed must explicitly state:

The obligation to return to the buyer the money received upfront plus annual interest in case the construction does not begin or finish in the terms and time agreed on in the contract, or in the case that the Certificate of occupancy is not obtained in due time.

  • The reference to the guarantee or insurance contract with an indication of the name of the guarantor or insurer.
  • Account number through which the buyer must deliver the amounts agreed in the contract.

Once the period of construction or delivery of the dwelling has expired, the buyer may choose between the cancellation of the contract and the return of the money paid upfront, or they could choose to grant an extension, which will be included in an additional clause of the contract, stating the new terms of completion and delivery of the housing. Remember that the rights of buyers are unconditional.

Finally, when the certificate of habitability is issued this document cancels the guarantees of the insurer or guarantor.

Lastly, if you have lost funds paid upfront to a builder or developer, you should know the following:

According to the ruling dated December 21, 2015 number 733/2015 issued by the Supreme Court, banks have an obligation to respond to the amounts advanced to developers or builders by purchasers of homes that have not been entered into an account Special or endorsed by the promoter.

This is great news for thousands of affected families.

If you were affected by this subject it is of the upmost importance that you claim as soon as possible. You need to provide your lawyer with all the relevant documentation regarding the payments and the property in order to start the claim process.

To receive more information about this or any other matter, please do not hesitate to contact our team of real state lawyers.