Happy New Year Chris!
Thought you may have commented on mark’s post re. it’s all the greedy Agents to blame not those poor maligned Developers 😯 Even I came out on the Agent defence
Here is a clip from Mark incase you mised it.
Many of the problems were the result of an insane, credit-fuelled boom. Things got out of control, and yes, greed was a big part of it, but it ain’t going to happen again, least not in our lifetimes. It wasn’t just the Spanish who were greedy.
Many horror stories have been blamed on Spanish developers. Sure there were some high-profile dodgy Spanish developers, just like there were in many other countries. But I suspect most of this class of problems were brought about by British, Irish and other foreign estate agents who used hard sell and exaggerated claims to sell to people who should have known better. The agents cleaned up and made off with their commissions, leaving the developer and clients to blame each other. I’ve spoken to lots of Spanish developers who were trying to do their best but were overwhelmed by the boom and then the bust. They might have been naïve and didnt’ know how to manage estate agents properly, but they never set out to screw their clients.
I know of one case where a British agent sold several hundred units off-plan to British buyers, took millions of Euros in commission, and then left the developer to pick up the pieces when boom turned to bust. All the buyers pulled out, none of the sales went through to completion, and the developer returned all the deposits plus interest, ending up more than 10 million Euros out of pocket. The Spanish developer acted with great decency.