A consumer group has criticised the Spanish developer Martinsa-Fadesa, currently under court administration, for obliging around 1,000 clients to carry on making stage payments for properties that have never been built.
“Buyers have to carry on paying for homes without knowing when they will ever be built, and without knowing what their money is being used for,” claims Adicae, an association representing users of banks and insurance companies.
Only a tiny minority of clients who bought off-plan have got their money back, whilst the remainder face “the torture of years before they get their money back,” Adicae told the Spanish press.
Adicae have also accused Martinsa-Fadesa of introducing new clauses making refunds conditional on properties being sold on to other buyers.
Martinsa-Fadesa was forced into administration almost a year ago, unable to cope with debts of around 7 billion Euros, and Adicae has accused the administrators of failing to protect “the most basic and fundamental rights” of buyers who have suffered as a consequence of Martinsa-Fadesa’s business failure. Adicae also criticised the administration process for its “lengthy processes, unchallengeable decisions of dubious fundamentals, and the great uncertainty amongst those affected.”