buying off-plan abroad - cancel contract

avicola

Hi there,

It is good of you to write and be interested. Thanks for that.

And apologies for not keeping you updated, which is for various reasons, mainly dull ones.

Had a meeting with the solicitor 3rd October at our request. The global financial ‘crisis’ only gets worse and so does our position. And of course those of other people, who are in a much more perilous position than us, through no fault of their own.

What we suggested was a deal whereby the developers let us have two apartments in exchange for the deposits. The solicitor is now suddenly all for a deal and announced that it could take 7 (yes, read seven) years for a decision by the court, given the fact that the developers would most certainly appeal if the case went against them. By which time of course the developers could be bankrupt, and we end up with zero anyway.

So he has said he will contact their solicitor and put that forward, or at least try and get some sort of agreement between us.

10th October, he had still not done that as he said he would be better for the demanda from the court to be served on them. (Incredibly, they still had not got it, and we asked him to chase the court up for it. It seems though that 4 months is not at all out of the ordinary for a demanda to be served. Wish I had known).

17th October the demanda was served on them, which gives them 21 days to respond to the court.

Spoke to the solicitor today and he says he has now faxed the developer’s solicitor and when he has that, he will contact him.

Oh, so slow.

And I have good reason to believe that the developers have now gone into liquidation, or are very close to it.

Just think – in 2 weeks we might know something! Or not. (I seem to have developed an undesirable line in sarcasm.)

In one way, I feel angry and determined to get the money back. The law is completely on our side it transpires as the developers very clearly have breached the contract as they are 2 years overdue in completing the build. And worse case scenario, we are still legally entitled to 80% back, despite the EA telling us that we would loose 100%. That gives us great heart and confidence.

But if the court case takes so long to come up, they have still got us by the whatsists.

PasturesNew

It's great you come back and update us. We do think of you between times you know.

Your last but one paragraph is showing promise!

Good luck!

avicola

Many thanks for thinking of us. It is honestly appreciated.

It is a strange situation to be in (to put it mildly). We entered into it of our own free will, but in mitigation were certainly helped to believe in the concept by the EA.

As the law says, 'let the buyer beware.' Too true.

I expect I have already said it before, but I wish I had known about a Bank Guarantee before. It seems that it is 'illegal' for the developer not to provide one. But in practice, it is seldom offered and the EA either doesn't know about it, or says it is not needed or brushes it off with a 'don't worry about the viability of this company' as in our case.

A bank guarantee would have meant that theoretically, we did not have to go through the courts.

What is actually happening in these troubled times is that some banks are claiming it is not up to them to pay .............. so you have to take them to court. Nice one.

One of the other points is that the money should never have gone straight into the account of the developers. That is again illegal. We did query that, in writing to the EA, but we were again told there was no cause for concern, the developers were huge. What should have happened is that monies should have gone into a holding account which means that even if they do go bankrupt, money is still there.

And yes the developers are huge. But do they have all their companies trading under one name? Ha , ha. I think not.

I wish I could think of a way to push the case through the courts faster or get a simpler ruling, but I don't think there is a way.

I hope my comments regarding bank guarantee and a separate account for the deposit might be useful to someone else considering purchasing off-plan.

My biggest advice is to go to a solicitor first rather than last, though that does not necessarily mean a risk-free investment.

neverdespairgirl

Any update on your position?

Lakey

glad to hear you are bearing up avicola, as PN says, I keep looking out for this thread for a happy update.
What with all this doom and gloom around it sounds awful, but I take some solace in the fact that we are all doomed, rich and poor alike!!



As Brucie would say Keeeep smiling, don't you think he's passed his SBD??

agosto

Hi all, and so many thanks for being bothered with all this.

Ha ha, some sad sort of consolation yes, in the fact that we are 'all doomed!'

If I had put the money in stocks and shares then I would have lost a lot too.

Hoping to have a meeting with the solicitor next week to see what he has come up with. Or what the developers have come up with more like, if anything.
Maybe the most interesting thing is that I am now in contact with someone in the same position, same development and potentially several others.

Looks like we may band together. Hopefully will give more power to our elbow.

stay safe y'all.

puddy

Hi I was looking for this thread a while back and couldnt find it, just wanted to know what was happening for you and how its going

Pssst

Really...I have just read the first few postings and not all the threads as its so lengthy but the spanish property developers must see the Brits coming! Thats why they target them with their heavy sales techniques!

But your not on your own ,oh no. What has happened to you is common practice. A friend of mine fell for the same routine. He bought a villa off plan,made a deposit with a future date for a further payment. Of course the estate agents said that he could sell the nearly complete villa,cream of the profit and all would be well. guess what? payment date approaches,not a hope in hell of a sale,eventually looses a very big wadge of cash and the property. Worse,the deposit was raised by mortgaging his home in the UK which is now financed up to the hilt and the mortgage is barely affordable!!

Trillionaire

Avicola any more news?

avicola

Hi one and all,

Here I am, still alive and if not exactly kicking, twitching at least.

Hope everyone's Christmas and New Year went OK. It must be terrible for so many people out there who have, or are under threat of loosing their jobs. Such a difficult time.
Money worries can't be under estimated. If you have any mates that you know are in difficulties, please let them know that you are receptive to talking to them. It does such terrible things to your head.

Re my position, I rang the solicitor a couple of times in December but no news.
Always he was waiting.
Waiting to get the contact details of their solicitor.
Waiting for them to have the 'demanda.'
Waiting for them to have the legally allowed time to respond to it (three weeks).
Waiting for their reply.
Waiting again so it 'didn't look like we were panicking.'

Panicking! Who me?
You bet yur !!!! ....

And then, when I rang him for a final nudge before Christmas, he said he had been talking to their solicitor.

Almost ridiculously, and in a completely low key way, he said that they had agreed to pay and that they 'just needed to decide how to do it.'

I say ridiculous, because I don't believe a word of it. I see it only as a holding tactic.

Will ring him again in the next week and see if there are any more developments.

Best wishes to you all.