Liability of the guarantors in the new legal regime on advanced amounts in the purchaseof off plan homes after Law 2012015, of July 14th, on management, supervision and solvency of insurance and reinsurance entities (LOSSEAR)

Abstract

This paper analyzes the position of the guarantors —insurance and financial entities— in the refund of the advanced amounts paid on account of the price of the home purchase contract after Law 20/2015, of July 14th, on Planning, Supervision and Solvency of Insurance and Reinsurance Entities, highlighting how the new normative text does not improve the position of buyers of homes that make adavancedpayments on account but, practically maintaining the regulation of Law 57/1968, reduces their position and rights against the guarantors of the amounts paid on account of the purchase price of a dwelling when, inter alia, the inalienable nature of their rights, the imperative nature of the rule and the executive nature of the insurance contract or guarantee are eliminated. Also, it is analyzed if the doctrine established by the TS during the validity of Law 57/1968 could be maintained after the reform introduced by the legislator in the First Additional Provision of the LOE (LOSSEAR).