Property deal fell through now solicitor asking for a lot of money

Gwhiz

Hate to say it but I think you may be screwed in that case.

hazyjo

Thanks for posting it all up. Good luck - really doubt anyone here can help... very different situation now.

Jx

barricades

maninthestreet wrote: »

Portuguese property, Portuguese solicitor, Portuguese law......

I know it's portuguese, but I'm in the UK and there is no Portguese section on this site.

I know there are plenty of Portuguese related sites but not ones with the calibre of knowledge as on this one. Plus I'm sure plenty of portuguese solicitors frequent those forums, I don't particularly want to bump into my guy.

Also it's all EU, so surely there must be some sort of EU laws applicable? Is it easy for them to pursue me in the UK even though they are in Portugal?

hazyjo

You should think about adding 'Portugal' somewhere in the title. If there is a remote chance of anyone with knowledge of the Portuguese legal system on here, they might be able to assist. The chances of them finding your thread without it is nigh on impossible.

Jx

Honest_EA

barricades wrote: »

Ok... more details it is then.

It's three apartments and they are in a development in Portugal. The Portuguese solicitor I'm using is one which was basically given to me by MRI (grrr) and they seem to have a very close working relationship with the developers. Any time I've talked to my solicitor they've 'just had another meeting with the developer about one thing or another'.

I'm not sure if we've exchanged contracts because I'm not entirely sure what that means. Basically about three years ago I sat in an office in Lisbon and signed an off plan agreement where I give them deposits on 3 apts. As far as I know we paid money to the solicitor for that part.

At the end of last year the apts were finnished and we were meant to give them the rest of the money. We tried to get finance but couldn't. Last week I finally got a letter from the developer saying:

"Subject: Promissory Contracts of Purchase and Sale of a Future Asset and of Lease for the purpose of tourist exploration under a suspensive condition signed on 17th August 2007...
You did not sign the public deed of sale and purchase on the date previously designated. So, [the developer] considers the referred promissory contreacts definitively non-fulfilled due to a cause exclusively imputable to you, on the terms of article 808 No1 of the portuguese civil code."

The amount of money they are asking for is the same as the amount I was expecting to pay them should the whole thing have gone through. As far as I'm aware their involvement since we signed the promissory agreements is a couple of phone calls.

I really appreciate everyones help with this.

Christ on a bike! The very mention of MRI should have made you run a mile. Unfortunately their sales tactics for overseas properties have put thousands of people like you in exactly the same position so you will have to take a ticket and join the queue if you want to pursue them, although I dont give you much hope. They are basically a sales company who flog off plan properties in emerging countries like Bulgaria, and cheaper parts of established countries like Portugal, Spain and Italy. They hook you in with promises of amazing returns on your investment and the ease of getting finance once the properties are complete. Most people put down a deposit once they have been pressurised during one of their inspection trips and then pay the first installment and sign a preliminary agreement a month later. MRI only allow you to use solicitors that are in cahoots with them so you wont be signing a fair contract and it will be heavily weighted in their favour if you cant complete, which you obviosuly cant. Therefore it sounds like they have got you snookered.

My advice would be to forget about the 3 installments you have already paid and dont communicate with their solicitors any more as you cant complete on the 3 properties and wont be paying any more money to dodgy solicitors. They wont come after you in the UK as you are one of 1000s in the same position who couldnt complete due to the economic crash and MRI are now facing claims from every possible angle. Put it down to a bad investment but you were played like many thousands so you are not alone. Just google MRI to get a gist of what they have been up to in the past. There is nothing postive to say unfortunately.

silvercar

What puzzles me is why exchange on 3 apartments when you are not even in a situation to afford one? Have your circumstances changed that much?

Gwhiz

silvercar wrote: »

What puzzles me is why exchange on 3 apartments when you are not even in a situation to afford one? Have your circumstances changed that much?

I would guess it was the thought of £££££££££££££££ and $$$$$$$$$$$$

Trollfever

Gwhiz wrote: »

I would guess it was the thought of £££££££££££££££ and $$$$$$$$$$$$

And €€€€€€€€€€€€€€.

A failed property speculation.
Cut your losses.

Richard_Webster

Also it's all EU, so surely there must be some sort of EU laws applicable? Is it easy for them to pursue me in the UK even though they are in Portugal?

Property Law is even different in Scotland, Northern Ireland, The Channel islands and the Isle of Man from English Law, let alone Portugal!

N79

barricades wrote: »

Also it's all EU, so surely there must be some sort of EU laws applicable? Is it easy for them to pursue me in the UK even though they are in Portugal?

Nope - the Commission has avoid walking into the mine field of harmonising Napoleonic code aligned property law and Common Law aligned property law, at least for the time being.

An English court will happily enforce a Portuguese court judgment and given the costs we are talking about it will be worth the while for the developer to chase you. The English court can bankrupt you or order the sale of your house, for example.

You need a good independent Portuguese lawyer to advise you. If you don't speak Portuguese and need an English speaking lawyer then the British Embassy to Portugal will be able to provide you with a list of English speaking lawyers of varying specialties. They don't "recommend" these lawyers but generally they will be fine - and will be willing to take on British clients. A proper Portuguese lawyer will be able to provide you with your options.