off plan development

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This topic contains 6 replies, has 5 voices, and was last updated by Profile photo of Anonymous Anonymous 10 years, 8 months ago.

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  • #51707
    Profile photo of Anonymous
    Anonymous
    Participant

    I have bought an off plan apartment that is due, according to the contract, to be finished next summer. The work on this phase has only just started and I can´t see that it would be at all possible for this development to be finished by then. Does anybody know if it would be possible to get my money back on these grounds? At the end of the day it will be a good development, but I don´t know if I want to wait forever.

  • #61634
    Profile photo of Anonymous
    Anonymous
    Participant

    I believe that in most contracts there is a clause where you can claim your money back (with interest) if the development is more than 3 months late. I don’t think you can ask for it back now, you will probably have to wait until next year and see if the build goes beyond the date in the contract. Check your contract and see what it says.

  • #61643
    Profile photo of Anonymous
    Anonymous
    Participant

    Thanks for your reply. If the apartments are ready but the developer has not received the first occupancy licence does that count as the development being late? I know of one development where the apartments have been ready for several months, but there is no occupancy licence yet.

  • #61675
    Profile photo of Anonymous
    Anonymous
    Participant

    eyeson spain is quite correct in terms of what the contract should say but in reality it is very difficult to exercise this clause in the contract. I paid a deposit in 2004 for a property due to be completed between May 2005 and November 2005. The property is still not finished and for the last 3 months I have been trying to exercise the clause in the contract that states I am entitled to a full refund plus interest. I have emailed the agents and the lawyers that hold the contract more than 20 times and spoken to them at least 5 times but to no avail. The lawyer told me that the builder is very unlikely to refund anything to me. What is the point of a contract if the builder can chose to ignore it? To add further insult to injury the written promise that we received from the builder advising us that a bank guarantee would be arranged was never followed up on. 😥

  • #61677
    Profile photo of mariadecastro
    mariadecastro
    Participant

    Dear Stina and Dman:

    I have recently solved a similar case with devolution of amounts, interests and some expenses to a member of this forum ( cazybianchi). I did with the Consumers Act in my hand and the fact that Agencia Tributaria is doing lots of inspections to developers. They must be interconected with institituions like FACUA that is very much in control with anti-consumers practices of real estate agents and developers.

    But, in anticipation I say that every case is different. It would be worth it for me to take a look at your contract and know the name of developer and municipality.

    Best,

    Maria de Castro

  • #61678
    Profile photo of Anonymous
    Anonymous
    Participant

    Dman,

    I have C&P’d a post below from Cesar on another thread. This also applies to your situation. Phone your lawyer and then follow it up in writing, demanding to have a copy of your Bank Guarantee. They have to obtain one by law. Make sure it is legal, and has your name on it, your deposit amount and refers to your apartment. I have highlighted in red the points most appropriate to you.

    Joined: 24 Jan 2006
    Posts: 62
    Location: Gijón / Oviedo, Spain
    Posted: Sat Apr 01, 2006 12:26 pm Post subject:



    I may tell you I have reviewed this issue lately after a phone conversation with Mark regarding his last published column, to be sincere I had to review the 57/1968 Law, I wasn’t very familiar with it as here (Asturias) providing a BG in off plan purchases is not as common as It should be. Most of times the builder would use a simple insurance policy, something, by the way, allowed in that 57/1968 Law, and will only provide you a BG if you specifically ask for it. (but by your E-mail I guess the policy you were shown doesn’t cover the deposits made by purchasers)

    The BG or insurance guaranties wont end till the builder gives you your house and he provides the LFO. This documents must be attached to the contracts and the money has always to be deposited in special accounts that can be only used in the related promotion. I may add that the rights granted to consumers by this law are considered non-renounceable

    The sentence saying your money is now granted by the construction may be true but legally speaking is pure crap

    Initial consequences ruled in this law to promoters/builders who fail to provide this guaranties have been revoked by the 1995 Spanish Criminal Code and 1999 LOE or General Building Act. Now, Everyone failing to provide the BG or insurance may be imposed fines up to the 25% of the non-assured amounts (LOE) also, if they don’t give you your house and fail to refund your money they could be sentenced from one to six years of prison (this may sound simple but it’s not… you have to prove they used the money for other purposes)

    About your lawyer… if you think he has ‘let you down’, and as for what you are describing I wont deny it, yes, go to his Bar Association (Colegio) and report him. Keeping brutally sincere you will find very, very, very difficult to meet a lawyer willing to sue a colleague (I do directly admit I personally wouldn’t) but every Colegio has a special procedure for this cases with lawyers appointed to do this work. Additionally we do have our insurance policies (I’ve never had a claiming demand in my 12 year professional live as a practitioner but I keep my 650.000 € yearly insurance up to date )

    Cesar
    _________________
    César Fernández
    construction and planning Lawyer
    cesar@gonzalezsastre.com

  • #61682
    Profile photo of Anonymous
    Anonymous
    Participant

    Hi stina, I have sent you a private message re Los Lagos.

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