Restrictions On Legal Standing Of Buyers Who Purchase A Home In Installments To Initiate Insolvency Proceedings

25 May 2009

Malaga Commercial Court no. 1 issued a ruling on February 5, 2008 (JUR2009/87939) which held that the buyer lacked legal standing to request insolvency proceedings against the developer since, pursuant Art. 3 of the Insolvency Act, the individual was not a creditor of same.

The petitioner had previously filed for a termination of the agreement and therefore the Judge determined that he could not be considered a creditor until there was a ruling clarifying the contractual relationship between the parties, with continued uncertainty as to the existence of the credit claimed by the buyer.

For further information, please contact Christian Krause Moral: ckrause@mmmm.es