Advice – following company going into administration

LoadingFavourite

This topic contains 11 replies, has 5 voices, and was last updated by Profile photo of adiep adiep 6 years ago.

  • Author
    Posts
  • #55957
    Profile photo of Anonymous
    Anonymous
    Participant

    I really just need some advice. In 2006 I bought an apartment off plan. Usual stuff – I was green – used the only solicitor who spoke English in the town – he did not get Bank Guarantees and did not look after me. I did not realise this large company was in trouble until a year later when it became clear they could not offer what they planned – it was a large project. I tried for some time to get an exchange, then the company went into administration and then I tried to cancel the contract. No help from our solicitor except to want money to register us as creditors. The building completed after this – but poor quality and we did not want it – at our age living on a building site with high condo fees because of unsold homes was not an option. For months we tried to cancel – even to walk away – just wanting to forget about it even though we have lost 60k euros. We finally employed a new solicitor – Spanish but in the UK. He cannot get anyone to answer anything and the old solicitor won’t give up the paperwork. He has created an expensive bill having done nothing for us except get us into this mess and never helped us when we wanted him to. We have asked for an itemised bill so we can know exactly what we are paying for and get it checked to see if it is fair, but it has not been forthcoming. We have had threatening letters from the builder to try to get us to complete, and the new solicitor is spending money just trying to get some response from the builder and the old solicitor. I have just retired – partly due to ill health and just want to see the end of this. I cannot afford to continue to pay a new solicitor for endless calls and letters to no avail. I am told this large company may come out of administration next year. The bank has repossessed and pretty much sold the unsold properties at knock down prices. At some stage surely they will need to contact us about our uncompleted property? Are we better just to leave it and see what happens – just ask the new solicitor to wait or what? Are there any risks to just waiting? We have pretty much accepted we have lost this money.

  • #101477
    Profile photo of Anonymous
    Anonymous
    Participant

    It very much depends on the Company, the sums involved etc.

  • #101478
    Profile photo of Anonymous
    Anonymous
    Participant

    The company is Martinsa Fadesa – the old solicitor failed to get us registered as creditors and the new solicitor thinks the administrators of the company will be able to commence legal proceedings against us for the enforcement of the contract. I am prepared to walk away but not to complete on this terrible property.The new solicitor has said that if I wish to avoid a claim from Martinsa Fadesa’s administrators, it will be necessary to show that there were defects in the property which were important enough to rescind the purchase due to breach of contract by Martinsa Fadesa. On those grounds I could dissuade the company to commence legal proceedings. All this will cost he says. Can’t they just take my deposit – will they really want to pursue me for the rest – which was about 132k but buying the whole thing from new now would be less than 110k.

  • #101481
    Profile photo of Anonymous
    Anonymous
    Participant

    CES,

    Very sorry to read about your situation. Which development was it?

    Do you have faith in your new lawyer? What does he suggest? Any chance you can get Martinsa-Fadesa on breach of contract? Sounds like they are not delivering anything like what you signed up for.

    If the old solicitor won’t give up your paperwork you might want to threaten him with legal action and reporting to the official consumer office. That might make him think twice.

    In my opinion, and don’t take this as any substitute for legal advice (not that that did you much good) if you walk away, they won’t pursue you to complete.

    But don’t put your head in the sand. Make sure you are in contact with the necessary people and aware what is going on until the case is finally closed. But I doubt it will cost you much more other than legal fees, so don’t worry about it too much.

    Mark

  • #101496
    Profile photo of Anonymous
    Anonymous
    Participant

    Hi Mark

    The development was the Costa Esuri one. The development is now completed (apartments that is) with hundreds of them up for sale. Unfortunately, the rest of what was promised, but which is not really written in clear detail in the contracts (i.e. commercial complexes, hotels, etc) is never going to happen. Essentially you get an apartment of average quality (or poor in our case as it is not what they showed us) in the middle of nowhere with no facilities except two golf courses, one of which is not open. There are great holes in each area of housing where the commercial centres were supposed to be. The countryside however is beautiful and that is what attracted us in the first place and I suppose this is why the Spanish are buying the apartments at cheap prices to either rent out or as summer holiday homes/lets.

    I am not sure the new solicitor has much expectation of delivering a satisfactory outcome – from our point of view we just want out even if it means losing our deposits. This is part of what he last said in the last email:

    It is extremely difficult to envisage the prospects of success in any litigation matter, and in yours this is even more complicated, as there is an administration process which obviously affects your position.

    Please note that the fact that your credit has not been included in the administration file of Martinsa Fadesa, may two negative effects:

    – Your credit, if it is finally recognised by the administrators of the company, will be position in a very last place after the rest of the company’s creditors, as the procedure to include the credit in the administration file has not been properly followed.

    – If you credit is not finally included in Martinsa Fadesa’s administration file, this will mean that the administrators of the company will be able to commence legal proceedings against you for the enforcement of the contract, as they announced in the letter that you received earlier this year.

    In my view, although a wait of a year or so would clarify whether Martinsa Fadesa will be able to pay its creditors, your chances of obtaining any satisfaction from Martinsa Fadesa are certainly slim.

    However, if you wish to avoid a claim from Martinsa Fadesa’s administrators, it will be necessary to show that there were defects in the property which were important enough to rescind the purchase due to breach of contract by Martinsa Fadesa. On those grounds you could dissuade the company to commence legal proceedings, or to respond a claim in the event that this is issued against you.

    All of this sounds very costly which the new solicitor confirmed. He also talked about whether the previous solicitor had properly followed procedures to establish our credit but without the paperwork he cannot do this and the old solicitor wont give this up. How or where do I go to make a formal complaint about this as I thought solicitors were supposed to pass on paperwork when asked to do so? I don’t want to litigate against our previous solicitor as I think we would get nowhere – there is a parochial feeling to that part of the world. I just want to end the contract. Why is it so difficult to do this? I have not yet responded to our new lawyer as I need to explore the least costly way of sorting this out. I think we have got used to the fact that we have lost 60k.

  • #101504
    Profile photo of Anonymous
    Anonymous
    Participant

    Well, my understanding of Spanish law is that if you were promised things in brochures and other sales material (or even verbally) then they are in breach of contract for not providing it. Did you keep copies of all the sales documentation like brochures and leaflets?

    That said, this is Spain, and even when the law is on your side it can be a nightmare trying to get justice (slow, expensive, unresponsive).

    Are you in touch with other Martinsa-Fadesa clients with similar problems? There must be hundreds in the UK. Wouldn’t it help to share info and ideas? Feel free to organise a group in this forum if you like.

  • #101506
    Profile photo of Anonymous
    Anonymous
    Participant

    @mark wrote:

    Well, my understanding of Spanish law is that if you were promised things in brochures and other sales material (or even verbally) then they are in breach of contract for not providing it. Did you keep copies of all the sales documentation like brochures and leaflets?

    That said, this is Spain, and even when the law is on your side it can be a nightmare trying to get justice (slow, expensive, unresponsive).

    Are you in touch with other Martinsa-Fadesa clients with similar problems? There must be hundreds in the UK. Wouldn’t it help to share info and ideas? Feel free to organise a group in this forum if you like.

    Hi

    Yes we have kept everything and a string of emails which show promises of bank guarantees that never materialised.

    We are in touch with a handful of people who are in the same or similar boat – different situations have occurred though, because of how well or how poor their solicitors handled the case. I think the situation with the plots is also different. So, some have been recognised as creditors even when they are buying an apartment in the same block! In our case our solicitor just did not bother.

    I would love to get a group together – if only to share information – where and how would I do that that?

  • #101532
    Profile photo of Anonymous
    Anonymous
    Participant

    I am pretty cetain the “Costa Esuri” forum has a thread on this. I agree the quality is just thrd grade. Fadesa had always operated in this manner. All gloss & no substance. A family buisiness who were building Council Houses for the local fisherman carried on with the same ethos while dealing with International clients.

    It may sound uncaring but is a blessing that they went down saving a lot of anxiety & agony to many a innocent buyers.

  • #101534
    Profile photo of Anonymous
    Anonymous
    Participant

    @CES wrote:

    I would love to get a group together – if only to share information – where and how would I do that that?

    I will have to look into setting up a dedicated forum for Martinsa-Fadesa clients to share info. Will let you know if I can work it out.

  • #101535
    Profile photo of Anonymous
    Anonymous
    Participant

    @mark wrote:

    @CES wrote:
    I would love to get a group together – if only to share information – where and how would I do that that?

    I will have to look into setting up a dedicated forum for Martinsa-Fadesa clients to share info. Will let you know if I can work it out.

    Thanks Mark

    I have just had a quote of about 1600 euros to settle my account with the old solicitor – effectively to get my hands on the paperwork. They say this covers reviewing purchase contarct, representing client in the purchase, NIE, meetings, POA, emails, telephone calls and representing us outside of Ayamonte (I assume but don’t know if this is to do with administration)

    I am supposed to be going over tonight to pay the bill on Monday and collect the file. Is this a fair amount given we have nothing in the end – we have not purchased!?

  • #101551
    Profile photo of Anonymous
    Anonymous
    Participant

    I changed lawyers after my first lawyer failed to get me a bank guarantee in an ‘Off Plan’ purchase, failed to respond to my enquiries, and failed in just about every other respect. (He was recommended by the estate agent).

    Anyway, after having signed the purchase contract on my behalf he wanted half of his total fee to release the file. His total fee, had he completed the purchase, would have been 1% of the purchase price. Therefore, the purchase price was 175K, so 175k x 1% x .5 = 875 euros plus IVA. I paid rather than continue with this lawyer.

    I did not proceed with the purchase but cancelled due to non delivery of the property in the specified time. My second lawyer is still trying to recover my deposit but after three years I am not hopeful.

    Good luck CES

  • #101552
    Profile photo of adiep
    adiep
    Participant

    Dont give up on that deposit David.

You must be logged in to reply to this topic.