British buyers take legal action against developer of Corvera Golf and Country Club in Murcia

A group of 10 British buyers is taking legal action against Calidona, the developer of Corvera Golf and Country Club in Murcia, arguing breach of contract and demanding their money back. The group are represented by Irwin Mitchell, a firm of British solicitors with offices in Spain.

The buyers are also worried they may lose all their money – in some cases the bulk of their life’s savings – if the developer of the resort goes bust like hundreds of other Spanish developers in recent times.

With the Spanish property market in crisis, this is a real risk. Listed Spanish property developer Martinsa-Fadesa, for example, has been forced to seek protection from its creditors, leaving numerous British clients without a home to show for their money, whilst Murcia’s mega-developer Polaris World narrowly avoided bankruptcy proceedings only last week.

Off-plan buyers at Corvera Golf have paid deposits and stage payments of up to 200,000 Euros for homes costing between 190,000 and 550,000 Euros. Irwin Mitchell believe that more than 100 British clients could be affected by Calidona’s alleged financial troubles and failure to deliver on spec. The developer is now said to be chasing clients for further payments.

Breach of contract

Irwin Mitchell argue the developer is in breach of contract for not having built luxury facilities that were promised at the time of sale, for example “a five star hotel, in-door swimming pool, spa, medical centre, equestrian centre, leisure facilities and tennis courts, as well as a commercial centre with bars, restaurant and shops.”

“The group claim that none of the five star leisure facilities have been built, and that they are now being chased for final payment and face the threat of being sued under Spanish law by the developers Corvera Golf and Country Club, SL, despite being informed that building licences are not even in place for some facilities,” explain Irwin Mitchell.

“And to add to their concerns, they also fear that the failure to build the facilities on this and on a previous site, Roda Golf, is a sign that the developers have run out of money and may go bust, taking the group’s hard-earned money with them.”

Solicitor Alex Radford, from Irwin Mitchell Abogados in Malaga – the Spanish arm of UK law firm Irwin Mitchell – said the issue was of increasing concern to a growing number of people who had committed hard-earned money in Corvera, and who travelled to the emergency meeting in Birmingham from across the country.

Radford said: “This is obviously a very worrying time for all of these people. Buying a property in Spain is a big decision. These people have worked hard to earn the money to buy these homes and saved for a very long time. To pay out this money was a decision they would not have taken lightly.

“Misled by the developers”

“Having done that, quite rightly, they expect to receive what they have paid for. They have been promised five star facilities to go with their homes, and they have been very badly let down indeed. Clearly they have been misled by the developers, and we want to get justice for them.

“These people want their money back or all the facilities they were promised to be built – it really is as simple as that. We believe the developers are in a breach of contract because of the lack of facilities that they said they would build when they first sold homes to our clients and a large number of other people who have also invested hard-earned money in a deal the developers haven’t honoured.”