November 5, 2007 at 9:27 pm #53448
Last December I entered into a contract with a developer called San Jose, based in Murcia, to purchase an apartment at Santa Ana del Monte, Jumilla. I paid a deposit which was supposed to be covered by a bankers guarantee, with completion due December this year. Completion has been delayed until December 2008 because licences have been held up, the developer is blaming the town hall in Jumilla however, it is very difficult to establish the truth.
Under Spanish law all developers are required to issue a bank guarantee following acceptance of a deposit, but to date San Jose have failed to do so despite numerous requests from my solicitor in Spain. Failure to issue the guarantee is punishable under the law, by a twenty five percent fine of the deposit amount, but this does not appear to be easily enforceable, San Jose just dismiss any threats out of hand.
The problem is that this is deception on a grand scale, there must be over a hundred other purchasers in the same position as me, our money was supposed to be protected under Spanish law but now we find that we could lose everything should the developer go out of business or not receive the licences. I know that a large number of people are involved because of discussions on two web forums.
Has anyone been successful in getting a fine imposed on San Jose?
November 6, 2007 at 3:27 pm #76040
Do you know why the licences have been held up?
Is it a technicality or land ownership issue.
Now more than ever, purchasers should tread carefull.
Check with the Town Hall on the Licences.
Have you had feedback and information from other purchasers?
How financially sound is San Jose, are they the developer or contractor. Is the development company a company set up for the one particular development, with little or no assets, or is it being developed by a parent company with substantial assets?
“deception on a grand scale” Yes, as it seem many, even on this forum have found out to their expense.
What searches and checks have you done on San Jose, the developer of the site and the constructors of the site?
Are any of the properties completred?
Did you use an independent lawyer or one recommended by the Developer or Agent?
November 6, 2007 at 6:40 pm #76045
Matt – I think that for the Fine (re: BG) to be imposed you would need to take them to court initially.
Have you found the forum on santaanadelmonte.co.uk ❓
November 7, 2007 at 12:20 pm #76049
Matt – Looking at the above mentioned forum; there are many people asking why they don’t have a BG. A response from the developer’s office on there, in part states:
‘Regarding the bank guarantees, it is not that easy to get bank guarantees to all the clients at once and that’s the reason behind the delay; besides, we are talking about a big development with hundreds of purchasers involved.
We already have in line several entities who will be issuing us with bank guarantees. All of that is nothing but a long burocratic process. Therefore, the fact that the bank guarantees are delayed does not invilved that we San José is acting against the law……..’ End of quote.
A ‘delay’ of 2 years for some on this development & still no BG 👿
Some who do have a BG have discovered it has expired & their apt here is still not completed. Think it’s high time to take collective, strong & unwavering action.
November 7, 2007 at 1:24 pm #76051
With all the media attention and threads on a forum such as this regarding people losing money, due to illegal builds, dubious agents and developers, etc., I am amazed that when purchasers are told reason for delays are “because licences have been held up”, that having paid out good money, they don’t have an inspection made of the building licences and the applications for, even if they have to pay a representative (Surveyor/Architect) to do it for them. Then is the delay is not technical such as the build specification and more something to do with the land ownership, etc., at least they know where they stand and what the next course of action they should be taking, should be.
Also, I wonder where matt has disappeared to, as he has not responded, after asking.
November 7, 2007 at 4:40 pm #76055
yes they should, but isn’t that’s the job of a decent lawyer?, ……..and the court system to make sure the laws regarding BG’S are uphelp, and if not, heavy fines given to the developer and full monies and compensation paid back to the buyer, without a further court case probably taking a few more years, just to get back what is rightfully theirs!!
November 7, 2007 at 5:10 pm #76056
“but isn’t that’s the job of a decent lawyer” Probably so, if that is in their brief to trace all Licences and Consent as they progress, or not as the case may be.
But if people are uncertain or do not have full confidence in they lawyer, or have not briefed them to confirm all consents as and when approved, I think it is money weel spent to make enquireied direct to the Governing Authorities.
Do you believe that when a lawyer is instructed to act on an acquisition, they follow all applications, consents, refusals as time goes on?
If so, much better than what goes on in UK and elsewhere.
November 7, 2007 at 8:31 pm #76061
Thanks for replies, I did use an independent lawyer from the outset and she confirmed, before she handed over my deposit, that the developer had permission for the development and sent me a copy of the licence. It would appear that a licence is required for each stage of the build, my property is up to ground floor level and has been since last May awaiting further permissions from the Ayuntamiento de Jumilla.
November 8, 2007 at 12:19 pm #76073
yes, i would expect a decent lawyer to check out all the issues you mention, our lawyer in the UK would do this without being asked, as part of his job.
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