Over the last few years Magistrates' Courts have ruled about different issues related with the bank guarantees enforcement.

Some of the most relevant issues about this matter are:

  • Bank guarantees copies can be enforced as long as the Bank doesn't provide evidences of falsehood. This is a widespread opinion.
  • Expiration dates on bank guarantees are against the law. Bank guarantees just expire when the property is delivered to buyer in time or the habitation's certificate is obtained.
  • For some magistrates' courts, the cancellation of the purchase contract is not a previous requirement to enforce bank guarantees. This is not an unanimous opinion.
  • Bank Guarantees can be enforced for the total deposit paid by the purchaser, even if the amount covered is lower, as long as all the money was credited into the same builder's account. This is not an unanimous opinion.
  • Bank Guarantees include the interest repayment, so the interest amount can't be reduced or removed pursuant to the guarantee's wording.

As bank guarantees can be enforced where the Bank owns assets, it is advisable to check the precedents from the Magistrates' Court and play safe.