- May 13, 2008 at 9:18 pm #53941
…what position would I be in?
I’ve heard a rumour that my developer in Murcia may be about to go bankrupt.
I’ve currently paid about 52% of the purchase price
I have had an appendix to my contract drawn up that has allowed me to use my property for the past year – I have furnished it and used it for holidays.
If the developer did declare bankruptcy, where would that leave me?
Other purchasers on the same development are in various stages of purchase – some have paid the balance and been given their Escritura, some have been given the Nota Simple for the land upon which their property stands, and others are in the same position as me.
What would be the process when a developer goes into bankruptcy, does administration fall to the bank to which the developer are in debt to?
Wouldn’t the bank want any potential purchasers to complete so that they could regain some of their investment?
Any advice welcome!
- May 14, 2008 at 9:02 am #82464
If your developer were to go into receivership then I´m pretty certain the administrators would see your outstanding payment as a debt to the company.
Usually some members of staff are kept on at the company by the receivers to help sort out outstanding business.
Receivers generally look at a company with a view to selling on to a new owner as the first choice.
You would no doubt appear as a debtor not a creditor so an attempt would be made to request payment from you. Obviously that would involve a legal right to title of your property. If your developer is fully up to scratch with his permissions and licenses then there is no reason why you will not receive your title deed in due course and be able to pay your balance at the notary.
Whilst in receivership, a company is very sound and all attempts will be made to complete the outstanding work in progress.
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