Polaris world dilemma

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This topic contains 11 replies, has 9 voices, and was last updated by Profile photo of Anonymous Anonymous 8 years, 2 months ago.

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  • #54253
    Profile photo of Anonymous
    Anonymous
    Participant

    Hi
    Is any body in our position, we bought off plan on Condado Alhama , due for completion early spring 2009, they rang me and have asked for completion 6 months early, we cannot do this now because of credit crunch, need more time, is any one having the same problem? if so have you had any joy pursuading polaris to delay.
    Also what happens if you dont, do they take us to court to claim the 40% or can they take it any way. any advice would be good. 😥

  • #85780
    Profile photo of Anonymous
    Anonymous
    Participant

    Hi susieT
    we are in exactly the same position as you as Polaris World have brought our completion forward by 12 months to this October, plus having actually visited this summer it’s pretty obvious that all attention is on finishing the apartments early without any of the facilities, including the Golf Courses, town centres etc even being started, so very little chance of renting out for at least 18 months. Like you we’re wondering what the options are and are contacting solicitors for their views. I would like to know from anyone if they can actually force you into completing as worse case scenario we can’t sell on the contract and have to walk away losing the deposit, but obviousy we don’t want to lose anymore money.

    Soksrus

  • #85783
    Profile photo of Inez
    Inez
    Participant

    Hi – I know quite a few people in the same boat! According to my mortgage guy who has been innundated with calls for financing, some are able to delay for another couple of months but if you cannot pay then depending on your contract, you stand to lose 50% of your deposit AND any estate agents fees already paid.

    Check with your lawyer!

    Good luck

  • #85784
    Profile photo of Anonymous
    Anonymous
    Participant

    @sue Tracey wrote:

    Hi
    Is any body in our position, we bought off plan on Condado Alhama , due for completion early spring 2009, they rang me and have asked for completion 6 months early, we cannot do this now because of credit crunch, need more time, is any one having the same problem? if so have you had any joy pursuading polaris to delay.
    Also what happens if you dont, do they take us to court to claim the 40% or can they take it any way. any advice would be good. 😥

    I know instances of this, assuming you can’t afford it at present, then just simply delay them.

    Whilst Polaris appear to be more aggressive about completions, the chances are they will just hold fire ‘for a bit’ and nothing will happen (especially as the market is slack), you’ll just get chased/warnings.

    What will happen in the medium term is that they’ll claim breach of contract (I assume refusing to pay the balance) and sell the property from under your feet, simply sell it (dump it) at the amount you have left to pay on the property in the market (I assume from what you have said the 40% remaining balance).

    Somehow I doubt they will take you court, simply wash there hands of you by dumping your property at the unpaid amount on your contract. I assume if they do this their loss for breach of contract is effectively nil anyway.

    This is a non legal view, obviously the terms of your contract (timings of payments etc) will prevail to a greater or lesser extent and of course seek legal advice.

  • #85798
    Profile photo of Anonymous
    Anonymous
    Participant

    Thankyou for your help folks, it seems that no one is really sure what will happen,I have sought legal help, but our spanish Lawyer is reluctant to commit, Is ther any one who has any legal advice. Or has any lost there deposit and how long after the completion date did this happen:roll:

  • #85799
    Profile photo of Anonymous
    Anonymous
    Participant

    You may want to check out this thread on EOS:

    http://www.eyeonspain.com/Secure/MsgBrdsPosts. … e%20Alhama

    A

  • #86494
    Profile photo of Anonymous
    Anonymous
    Participant

    I and a number of others are now in dire straits we were told our completion date was brought forward by 10 months and now I fear we won’t be able to raise a mortgage as the credit crunch grips. When I mentioned this to Polaris world they told me that everybody had said the same. I have set up a website in an attempt to find others in our position please visit clearskyspanishvillas.com and help support us with your comments etc

    many thanx phill

    pj_sylvester@yahoo.co.uk

  • #86506
    Profile photo of Anonymous
    Anonymous
    Participant

    Unless your contract actually states “completion on or before…” you cannot be forced to complete early.
    If Polaris are in financial difficulties, as has been reported elsewhere, then it is obvious they will try to get in as much money as possible, as soon as possible.
    Your lawyers should be answering these questions for you though.
    With regards to the credit crunch/exchange rate situation, do you believe that you will be in a situation to complete in x months time?!

  • #86549
    Profile photo of Anonymous
    Anonymous
    Participant

    Hi Hillbily

    My contract does mention about the completion date being brought forward but ten months early seems excessive especially when the site will remain unfinished for years to come with no rental potential etc. Someone I have just talked to had to wait nine months for his utilities to be connected after he completed. This would not be tolerated in the UK Also I can’t understand why we have to employ snagging companies? Completion to me means completion.

  • #86551
    Profile photo of Anonymous
    Anonymous
    Participant

    I do understand your dilemma. However, if your contract states that the completion date could be earlier (did it give a period of time? If not, then it has been left open to interpretation and this should have been addressed by your lawyer before you signed the contract, if it was possible that this could become an issue) then, if the property is, to all intents and purposes, now ready for occupation (which of course should include utilities and any other development-specific elements) then you should complete within a reasonable amount of time i.e. fulfil your side of the contract.
    Usually clients are happy if a building is delivered ahead of schedule and complain if it is late!
    As regards snagging on new builds, you are right…in an ideal world this shouldn’t be necessary but snagging is carried out as regularly in the UK as in Spain (if not more so).

  • #86554
    Profile photo of katy
    katy
    Spectator

    If utilities are not connected then the property is not ready for completion. As for snagging..none of the “snags” are ever rectified if you have completed.

  • #86560
    Profile photo of Anonymous
    Anonymous
    Participant

    First of all, it is necessary to mention that until the First Licence of Occupation of your property is issued you don’t have to complete, I mean the developer can’t force to sign the deeds before the Notary if in that moment they don’t provide the FLO. In all the purchase agreements from PW you have that statement
    As Katy said ‘If utilities are not connected then the property is not ready for completion’. Usually utilities are not connected because the lack of FLO.

    Sue, do you have a Bank Guarantee for all the monies you paid, even the reservation fee ? I mean do you have the original ? Have you seen it ?

    As everybody said before it depends on the wording of your purchase agreement but I’d say that PW is short off money now, so they can’t spend in legal fees hiring lawyers in order to oblige buyers to complete. If you are going to fight you have some chances, obviously you can’t use a recommended lawyer because these lawyers are lawyers from PW and they never cause any problem to the goose that lays the golden eggs

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