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Yes, I have put down a large deposit on one of those properties at CALA ROMANTICA and it was due for completion at the end of June. I have visited the site several times this year and have seen no visible progress since January. Whilst all of the houses themselves are just about complete, there is still lots of work to do on the gardens and roads. After quite a few attempts to contact Euroterra, my Spanish lawyer eventually got hold of them a couple of months back and they explained that they have cashflow problems and are working with their bank on a solution. As my contract allows the developers a 6-month slippage in delivery of the property, my lawyer tells me there is nothing we can really do until end of December – or until the developer goes into administration (at that time they had not). I’m unable to get replies to any of my emails asking for an update.
I have been following discussions on a Spanish forum regarding another development of theirs that has similar troubles (Google EUROTERRA and DUQUESA to find that). There are very recent posts on there and nothing to indicate that they have gone into Administration yet
Would welcome any news – I’m sure it can only help if as many impacted people as possible keep in touch and share the information they have on this forum, though I believe that most of the purchasers were either German or Spanish
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Thanks for the reply. According to my lawyer they have gone into administration. If we ask for deposit back we may only get 50%. We could have it finnished, by whom I’m not sure, or have it as it is but finnish it ourselves at lesser price. It has to go to court. I wish there was a way to find out if the bank could re-imburse people, but no help being given on that. Hope this helps a bit. So glad to share with someone else as there is just no help at all.
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Many Thanks for the update. Yesterday I asked my own lawyer to check the status of the company. I suspect that all of the deposit we have put down has been spent. I was misled into thinking that our deposit was guaranteed by a bank (according to the law) but it doesn’t look like that is the case at all. Our contract says that if WE drop out before end December then we’d only get 50% back. If the house wasn’t completed by then we’d get it all back. But of course if they are in administration, I guess all that goes out of the window. Will be interesting to see what options the administrators come up with. Of course with house prices dropping we were already looking at having to pay well over market price for the property (the Euro rate doesn’t help much either). By the way, where do you live ? We are in Bristol.
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The bank may still be able to do something in December do you think? I like maybe you just want my money back now and start a fresh on something else. Please if you hear any news let me know and I will the same to you. I live in Blackpool. I have just read about the problems the buyers in Duquesa are having too. They don’t seem as bad though as at least they have got in their houses. Thanks again.
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A couple of days ago my solicitor got an email back from Terrapolis that explained that because of the sitatuion with the bank, “they are looking for administration. They presented the claim to court earlier this month, but it’s not registered yet”.
So I’m hoping that the info you just posted simply means they are officially in administration now i.e. they are temporaily protected from their creditors (claims for deposits back etc) whilst a rescue plan is worked out. However when I see the word ‘receiver’ in your note I wonder if it’s gone beyond that stage now and they are already being ‘wound-up’
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My lawyer in Manacor has now made contact with a lawyer from Jaen who is representing some of the purchasers.
He thinks that the best solution could be to negotiate on a price for the delivery of the house (but we’d need to reduce our expectations of how “finished” it would be). He thinks that trying to reclaim our money would not be a good idea – as ‘ordinary’ creditors we come a long way down the list, so may not get much back anyway. I quite like the idea of potentially being able to get hold of the house at a reduced price
I need to now give him power of attorney so he can appear in court for me and find out some more details there.
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I am being told the same. So at least it is the same story. Do bear in mind though water may not be connected do we know how much that could cost in a foreign country. The houses un sold could take a long time to complete. The gardens could cost a lot too so we have to consider all costs when deciding.
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Yes, lots of things to think about – it suddenly could become a big and long project for me to run, which is not what I had in mind at all. But possibly (as I have read about in similar cases) the administrators will plan to fund additional work to at least get the houses to the state where the habitation licence is granted.
My solicitor has estimated a cost of around 2200 euros for his dealings with the bankuptcy court if it all goes smoothly (in addition to the original solicitors fees for the purchase) and I’m told that I need to get power of attorney for him from the Spanish Consulate in London so he can act on my behalf with the courts. Let me know if you want details of that. Where is your solicitor based ? (mine is in Manacor) and which plot were you buying (mine is no 72)
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fyi, on that other (spanish) site that I mentioned earlier (the one with a discussion about the Duquesa development) there is now another new and active thread (from mid Sept) talking about the Cala Romantica situation. If your spanish isn’t up to it, Babelfish does a half-decent translation of it. Worth keeping an eye on. Best Wishes
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@Andy B wrote:
I was misled into thinking that our deposit (£75k in total) was guaranteed by a bank (according to the law) but it doesn’t look like that is the case at all.
Hi Andy, my apologies for butting in here, but is your current solicitor the same one that failed in his duty to ensure you had a Bank Guarantee???
And who ‘misled’ you?
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No Charlie – it was the sales person from Euroterra. They pointed out a contract clause that explained that the deposit was guaranteed by an organisation called Europolis – which I think turns out to just be another part of their own group :0( As so many people seem to be finding out, the law that insists bank guarantees are always provided is not strictly adhered to.
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Anyone else from UK (apart from Roskellp and myself) buying at this Cala Romantica development in Mallorca ?
The latest from me is that I got the ‘Power of Attorney’ document from the Spanish Consul in London last week (that was quite an easy process – cost £37) and have sent them off to my lawyer in Mallorca so he can represent me in the Administration hearings in court. Anything new to share from your side Roskellp ?
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The latest from my solicitor is that the bank refused to loan the builder /adminstrators the money required to finish the development, so the builder is asking whether the purchasers are prepared to contribute the required funds (no indication whether or not that would be taken off our final payment).
No specific details available yet though and other options being discussed such as possibly offering us our properties at a reduced price so we can finish them off ourselves.
What does seem clear though is that if the builder goes under there will be very little money for us creditors after the preferential creditor (the bank) gets what is owing to them
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Thank-you. My impression was the money was to increase the amount on the contract. Also no amount stated so it could be 20k could be less. Also the builder has gone he won’t be coming back. What would be really great and the only way that I would accept the property now, as it will be damp and probably been vandalised, as they have been vacant for some time now. Is if they said have it as it is, no more to pay and the unsold properties will be sold at auction as the unsold ones will remain as they are until sold, so even if we did ours up the others will drag the development down anyway. Let’s still see what happens next. What a mess!!
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No developments or news from my side recently I’m afraid. I believe that whilst the developer is still in administration, they will have protection from claims for refunds from individual creditors like ourselves (even for breach of contract) until they actually get declared bancrupt and all their assets are sold. There is some information at this EC url
http://ec.europa.eu/civiljustice/bankruptcy/bankruptcy_spa_en.htm
I’ll post here as soon as I hear anything from my own lawyer
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Thanks Andy, so I am best sitting it out. There is somone who has posted on the Spanish site who is British but I could not manage to post a reply on it, to et them to talk on this site he/she was asking if security was still on the site.
It’s strange you have not been told about the other buyers putting up more money before the bank takes the villas for payment owed. Will still keep hoping for refund because the developer is well in breach f contract and the bank should never have sold with no bank guarentees which is also against the law.
Thank-you for any news you get. -
I know Charlie picked up on this earlier and I’m afraid she is right if your lawyer has not got a bank Guarantee (from a Bank or Insurance co.) s/he has not represented you very well.
http://www.eyeonspain.com/spain-magazine/bank-guarantee-legal.aspx
The above was written by a Spanish Lawyer
Good look guys
Regards
Paul
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roskellp
your last paragraph is common sense you would think? In our experience, common sense in Spain stands for very little far to often. Despite the fact that we trust that a legal body like a lawyer will do the right thing, this is often not the case. That in itself is bad enough, but then to to be told ”tough luck , you are on your own” is the real kick in the groin.
Being in the right, following the rules, trusting a lawyer is working in your interest doesn’t mean justice in Spain in the same way we would expect in the UK. Rather than the very obvious guilty party/s being punished, more often than not you will first have to find a genuine independent lawyer, pay out at your own expense, and hope for your day in court in several years time due to the backlog, and then hope you get a straight judge who has not been corrupted by those you are up against?
Good luck to you and others in the same boat. The system stinks, and I feel that if we are expected to abide by EU rules then it should be a two way thing, and implementation of laws, regulation and justice should at least be recognised as fair throughout. That’s far from the reality at present sadly.
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Hi,
The last I heard concerned a proposal before the administrators that if enough of the buyers signed-up to make 30k euros of their final payment available early, it might be possible to commence building this month (with the properties of those people being addressed first).I didn’t sign-up for that myself and haven’t yet heard if enough people committed to it to enable this idea to get off the ground (and I’ve not been over to Mallorca to visit the site for some months)
Will be getting my solicitor to get a status update for me soon
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I should consider the following before parting with more cash.
1) What guarantee there is to show that funds paid will apply to the particular development or indeed to ones property.
2) What kind of sub standard materials will be used.
3) How much of the money is going to be used towards infrastructure i.e. roads etc and who will complete this.
4)What if any salary the developer will take during the period.
5) Who will be monitoring the construction from there onwards
6) How will the funds be ring fenced.
7) Strict guidelines to be established for completion/hand over.
8) What remedy for cost over runs.
9 ) The ten year guarantee for all its worth . What part will be covered & by whom.
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Sorry, I maybe late & events may have moved on. In the event that they have not and you all decide to pay the €30k.
Please ensure that the payments are ring fenced. None of the old contractors are involved in finishing and if they have to be a fresh contract has to be signed with each & every thing listed in details.
None one from the developers should be a signatory of the bank accounts and if possible have one of the buyers be joint signatory to this new bank account to over see payments and the quality of the finished units.
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