Buyer default

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This topic contains 1 reply, has 2 voices, and was last updated by Profile photo of Anonymous Anonymous 7 years, 9 months ago.

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  • #54738
    Profile photo of Anonymous
    Anonymous
    Participant

    Hi,

    I have tried to find the answers to my questions by trawling through lots of posts, but couldn’t find an answer. Apologies if this has been answered elsewhere. I do have independent lawyers, but they have not given my any useful insight.

    I paid €115,000 (30%) on an off plan apartment in Manilva. I can now no longer afford to complete, and am trying to work out what my options are.

    The LFO is there (over 2 years late), and the only reason they are not chasing me for completion is that (according to my lawyer):

    “.. the lawyer´s promoters (sic) … informed me that they are dealing with another promoters (Constructora San José) for payment purposes due to the financial problems. She will contact me as soon as they have an agreement with the said “constructora”.”

    I have heard from another purchaser that they have been unable to get a mortgage because of creditors having a charge on the development.

    The purchase agreement does say:
    “The Parties agree that in the event that the buyer defaults on any of his obligations under this contract, the seller may rescind this purchase and sale, notification is necessary. The seller will be able to retain 50% of the buyer’s payments up to that date as damages.”

    My q’s are:

    1) I assume that there is no prospect of getting my deposit back (despite the para from the contract, quoted above)?

    2) Is there much likelihood of the developer pursuing me through court? (I live in the UK). Doesn’t the quoted para ‘decide’ what the developers recourse is?

    3) Can I use the fact that they are in financial difficulties / the charge is causing problems in getting a mortgage, to help my position?

    Thanks in anticipation for any informed replies. John

  • #90175
    Profile photo of Anonymous
    Anonymous
    Participant

    John – Try posting your questions on:
    http://www.belegal.com

    I’m sure that one of the lawyers on there will be happy to advise you.
    All I know is that once the LFO is issued it may be a lot harder to get your money back, but each case is different & there are obviously other issues involved in yours. All the best.

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