Hi Claire and Drakan 🙂
Thanks for the info which I am sure has been of interest to many as well as me. ( hits in 24 hours confirms that this is a topic of inerest)
It still leaves such a mess that many will find very difficult to comprehend and take a 300,00 euro property that is awaiting an L.F.O.
Dont complete and when the legals are sorted you will be bound by contract to complete with penalties and legals if you loose in court.
1 Dont complete,or the developer goes bust and you loose your 100.000 + euro deposit.
2 Those that have completed have a tangible asset,albeit one that could fall in value,but thats the same as any property or investment assuming your in it for the money.( if not then its not a problem).
Its clear that at this point nothing is lost with this option.?as any loss or profit will only be realised when or if you sell.
However whats apparent is that the ones that paid well over the top on a development thats going to drop in value(ie 30% + below the value in 2003) may well chose to walk as an option but they have realised the loss here.
3 Complete and save ? your deposit following legal advice that the legals will follow and and we know that in the main this will happen.
5 Good point that the builder may not pursue you with legal issues still pending however assuming that this is given I would assume they will be going after everything they can probably backed by the banks as you still have a contract pending and they will be looking for the maximum financial return including covering negative equity.
6 The banks may have difficulty in chasing someone for the shortfall if you stop paying as they would have to explain lending on an illegal property if that was the case in the first place.
Its a clear that each must decide what to do according to advice given and time will tell how it works out for indivdual cases.