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 British and Irish 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.

He says: “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.”

“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.”

“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.”

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The firm says that buyers affected by the collapse of Compañía Inmobiliaria Masdevallia should inform the Spanish court as soon as possible, or appoint a lawyer to do so on their behalf.

Masdevallia was the developer behind the ambitious Nueva Ribera and Nueva Ribera Golf Club developments in Murcia. Both Masdevallia and One Properties, which marketed the schemes and which has also filed for insolvency, appear to be linked to Juan Antonio Roca, ex-planning councillor at the Marbella town hall and one of the main people involved in the Malaya Operation, the anti-corruption campaign in Marbella.

Both companies are in a voluntary insolvency arrangement and administrators have been appointed to supervise their management. Antonio Guillen, a Spanish lawyer with DWF who are acting on behalf of British buyers affected, explained: “The administrators will detail the companies’ resources and assets as well as the debts and point out any possible ways of saving them. This procedure takes time and could prove extremely complicated and frustrating for those who are not familiar with Spanish law. ”

“It is also necessary to ascertain whether the developer has a bank guarantee in place to cover any amounts paid by the purchasers towards the construction. This is a requirement under Spanish law although not all developers comply. This document is extremely important as it could make all the difference between creditors losing all their money and getting a refund. Your lawyer will check this for you.”

Antonio Guillen is also currently representing clients of Martinsa-Fadesa, Spain’s largest property developer and the largest insolvency in the country’s history, as well as another Spanish developer Herrada del Tollo S.L. He adds: “It is vital for purchasers affected by the insolvency of a Spanish developer to appoint a lawyer as soon as possible to make sure they are duly represented in the insolvency procedure, as well as considering alternative solutions such as enforcing the bank guarantee, if there is one.”

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