Hello all legal eagles
Sorry if I am asking you to repeat answers given already, but we all like to know what happens in our specific circumstances.
In my case the developer wanted stage payments for my villa in 2004, but I could not afford all the stages only the first 30% which I paid in May 2005.
The builder suggested he could fund the build until completion on three conditions.
1.I paid his interest charges specified at a set sum and put into the contract
2. I paid for the Aval, again at a set sum
3. I paid for any other finance charges arising from his builders mortgage.
Pablo, I think the bigest issue is number 3. I dont know if it is worded as loosely as that in the contract, but by agreeing to pay the mortgage finance charge you could find that if you dont take over the mortgage you could be liable for his opening and closing commisions which may be a total of 2% or more of the morgage value.
You do have certain consumer rights in Spain and in accordance with EEC guidlines “Cláusula abusiva”: This Spanish term refers to clauses in a contract which go against good faith and are unfair. They do not reflect an equal balance between the consumer and the professional – usually to the detriment of the consumer.
I dont know if this could be applied but it is certianly worth checking out.