Trampolin Hills Golf Resort SL, a company that sold hundreds of properties to British and Irish purchasers without having planning permission in place, has been forced into administration leaving 2,500 unfinished homes.
Antonio Guillen, a Spanish lawyer with DWF in Manchester who is advising purchasers on the insolvency of several Spanish developers, says the company has been put into what is known in Spain as "compulsory administration", which implies that the procedure has been started on the request of one of the creditors. It could also mean the company directors are personally liable. Two administrators have already been appointed to manage the company's affairs.
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He said: "Trampolin Hills has recently become known for the irregularities in its residential development in the area of Campos del Río, Murcia, especially since it appears that the company started to sell off-plan units without having all the necessary permits in place.
"It has also been alleged that most of the bank guarantees provided were issued by non-authorised insurance companies.
"Anyone who has purchased a property off-plan from Trampolin Hills or owns a property that has not been fully finished needs to inform the administrators and the court before 2 December to ensure they are included in the final list of creditors. They will need to supply any documents that can help to prove the payments made, such as purchase contracts, payment orders and bank statements."
Mr Guillen said they should also check whether they have been supplied with a bank guarantee. A guarantee is compulsory under Spanish law, although not all developers comply, and will ensure that if the property is not finished, a guarantor, usually a bank, will refund the money they have paid plus interest.
"It could mean the difference between them losing all their money and getting a refund," he continued.
"Ideally, purchasers should contact a lawyer versed in Spanish insolvency law who will ensure they have all the right paperwork and are properly represented in the administration procedure, as well as contemplating alternative solutions such as enforcing the bank guarantee where this has been provided."
(GK/KMcA)
