After reading a BG issued by SGR in favour of ‘BRONCHO PROMOCIONES SL’ which is the developer of ‘UNITED GOLF RESORTS’ I must say that it is completely useless and unlawful.
Those who have this kind of BG must be aware that it only guarantees a ‘right of purchase’ which is not the purpose of a valid BG issued in pursuant to Spanish law, in particular 57/68 Act. This Act was enacted to secure the stage payments of purchasers should for example a developer file for creditor protection or the build be cancelled for planning reasons and thus not delivered in the stipulated deadline
In that Act is also laid down that a BG should only expire upon the granting of the Licence of First Occupancy by the Town Hall (section 3) while the mentioned BG has a wording that makes it subject to the sign of the public deeds
