Worthless Bank Guarantees
Helpful member
Off Plan Properties
The change in the law is that bank guarantees are only valid as from the time a developer attains a Building Licence from the town hall. Only as from that moment onwards are bank guarantees valid.
Many developers try to allay purchaser’s fears claiming they have an application for a Building Licence; well, that isn’t enough. Unless a developer has attained a Building Licence, all the money you have paid towards your new property is unsecured.
Should the developer go bankrupt or the development become stalled for whatever reason you will lose all your money. Even if you have been issued with bank guarantees rubber stamped by a bank, they are totally useless unless a Building Licence has been issued.