Do we have a case to sue on a failed development?

mulder

Hi

A number of clients purchased in a Sri Lankan hotel development through a 'reputable' property company.

A few of us expressed concern over the legitamacy of the project during the last 18 months but have been fobbed off by the property company with lame excuses. Recently they informed us that the developer had gone AWOL and advised us to seek legal action through the Sri Lankan lawyer to reclaim our money. The have since failed to interact with the group we have formed on email and have completely washed their hands on the problem

We feel we have three options

1. Pursue with the lawyer who has indicated it will cost £200 to put a hold on the land and 4-5k each to proceed with legal action.... The majority of us do not feel confortable with this based on previous dealings with him and is it bad money after bad money....especially as no-one knows the whereabouts of the developer.
2. Pursue a case against the property company. We feel they have misrepresented us in this purchase, did not undertake necessary diligence and did not see or bother to check the warning signals over the last two years. We transferred our money to a non escrow account 4 years ago.....
3. Do nothing and write the money off.

We have more details but would realy like to canvas proffesional opinion as to whether we have a case on option 2 and any ideas on option 1.

Thank you for your time

Trollfever

You could get ideas from the property investors who post on this Board. They have invested in Bulgaria, Canary Islands, Egypt and other areas.

P.S.

Cyprus can be added to the list.

neas

trollfever, your too mean.

Essentially trollfever is saying that this has happened before and will happen again, investing in foregin properdees... is high risk vs high reward.

Unfortunately in terms of business if you cant afford to lose an investment... dont risk it...

Sorry.. but this time.. you lost.

Fire_Fox

mulder wrote: »

Hi

We feel we have three options

1. Pursue with the lawyer who has indicated it will cost £200 to put a hold on the land and 4-5k each to proceed with legal action.... The majority of us do not feel confortable with this based on previous dealings with him and is it bad money after bad money....especially as no-one knows the whereabouts of the developer.
2. Pursue a case against the property company. We feel they have misrepresented us in this purchase, did not undertake necessary diligence and did not see or bother to check the warning signals over the last two years. We transferred our money to a non escrow account 4 years ago.....
3. Do nothing and write the money off.

We have more details but would realy like to canvas proffesional opinion as to whether we have a case on option 2 and any ideas on option 1.

Thank you for your time

Did the property company actually represent you or did they represent the developers? That is who paid their fees?

FoxtonsRIP

mulder wrote: »

Hi

A number of clients purchased in a Sri Lankan hotel development through a 'reputable' property company.

A few of us expressed concern over the legitamacy of the project during the last 18 months but have been fobbed off by the property company with lame excuses. Recently they informed us that the developer had gone AWOL and advised us to seek legal action through the Sri Lankan lawyer to reclaim our money. The have since failed to interact with the group we have formed on email and have completely washed their hands on the problem

We feel we have three options

1. Pursue with the lawyer who has indicated it will cost £200 to put a hold on the land and 4-5k each to proceed with legal action.... The majority of us do not feel confortable with this based on previous dealings with him and is it bad money after bad money....especially as no-one knows the whereabouts of the developer.
2. Pursue a case against the property company. We feel they have misrepresented us in this purchase, did not undertake necessary diligence and did not see or bother to check the warning signals over the last two years. We transferred our money to a non escrow account 4 years ago.....
3. Do nothing and write the money off.

We have more details but would realy like to canvas proffesional opinion as to whether we have a case on option 2 and any ideas on option 1.

Thank you for your time

How much are you out of pocket so far?

mulder

Thank you for your useful and constructive comments neas, fancy meeting up sometime......?

Firefox - Each investor would of paid the broker an arrangement fee based on the value of the property and they act on our behalf. Ive made other investements with them that have all be sound and profitable. I think with this investment the developer had good intentions but due to redtape and hidden problems couldnt proceed (longer story) however we feel the broker took his eye off the ball with this and could of acted much sooner whilst in contact with developer. The broker insists that he hasnt been paid the arrangement fee/kick back from the developer....

We feel the broker should foot or part fund any legal action against the developer, that hasnt been forthcoming so we are where we are now...

Foxtons - Id say ranging from 7-20k dependant on size of property.

Fire_Fox

Isn't a broker simply an introduction agency: they don't offer financial advice do they? If you are lucky you might have a case for asking for your arrangement fee to be refunded, but you'd need legal advice on that. If the broker is intending to take a cut from both parties they are not acting on your behalf.

As the investor you are responsible for doing your own homework, which includes employing the appropriate professionals to check that the 'red tape' had already been addressed BEFORE you shell out any money. If you were to invest in a new build in the UK a solicitor would only advise you to buy 'off plan' once planning permission had been obtained and a proper contract/ insurance in place.

Sorry to sound harsh but it sounds like you all saw dollar signs in front of your eyes and gambled your money away. Move on and chalk it up to experience. Not sure why you are having a pop at Neas, you might not like to hear it but he/she is telling you as it is.

neas

mulder wrote: »

Thank you for your useful and constructive comments neas, fancy meeting up sometime......?

Firefox - Each investor would of paid the broker an arrangement fee based on the value of the property and they act on our behalf. Ive made other investements with them that have all be sound and profitable. I think with this investment the developer had good intentions but due to redtape and hidden problems couldnt proceed (longer story) however we feel the broker took his eye off the ball with this and could of acted much sooner whilst in contact with developer. The broker insists that he hasnt been paid the arrangement fee/kick back from the developer....

We feel the broker should foot or part fund any legal action against the developer, that hasnt been forthcoming so we are where we are now...

Foxtons - Id say ranging from 7-20k dependant on size of property.

Sure i'd love to meet up . I'd tell you exactly the same thing... sometime people shouldnt lie about reality.... its plain and simple you lost it, the companies gone bust, itll be tied up with foreign law and you may end up spending more money on something that doesnt exist.

mulder

then do, ill wipe that smile off your face.

I think your absolutely right but I and the fellow investors dont appreciate your smug atttitude.

pfpf

mulder wrote: »

then do, ill wipe that smile off your face.

I think your absolutely right but I and the fellow investors dont appreciate your smug atttitude.

i never post on this board, but sometimes have a read when i'm bored.

i dont see anywhere where neas shows a "smug attitude", all i see in their 1st post was an honest and helpful opinion.

i really have no idea why some people post on here and then react badly when the advice/opinions are not to their liking. why bother posting if you already know your stance point?

slopemaster

mulder wrote: »

then do, ill wipe that smile off your face.
.

Bogger off. If that's your attitude, you don't deserve any advice or sympathy here.