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El blog de Maria

Your daily Spanish Law reporter. Have it with a cafe con leche. www.costaluzlawyers.es

Legal tip 138. The restore action
Friday, September 11, 2009 @ 12:24 PM

If you are in the middle of an off-plan contract cancellation action or are thinking of claiming.

There are many things to be done depending on how the finantial/economic situation developer in the comiong months.

First thing to bear in mind is that this is going to be a buyers market for many years ahead, and with that no-pressure by sellers and buyers running the show....

-You can buy with good price and excellent interest rates

-You can rent with an option to purchase, with a fixed price in advance.

-If you are pursuing cancellation ( action that can also be called: "restore action" as it put balance in the contract after an abusive contrat") You have got several  finantial assets:

-A potential credit against a developer for the refund of x plus legal interests.

- Buying rights on the property in between ( the developer cannot sell to anyone else till the contract is effectively cancelled and your money refunded).

- A better position within the creditor´s meeting ( if that ever happened)

So... it is not just a matter of contract cancellation at whatever cost, it is a matter of re-establishment. Many of the clauses of many of the contracts I have seen duting the last 3 years and a half are corrosively abusive. Repugnant.

I am enlisting some of the games you can play with the above mentioned assets at hand ( but I am not a finances expert.... so please, make your conmtributions! ):

- You can negotiate a great price reduction with the developer along the judicial proceeding and complete on the property at a much reduced price and with much reduced interest rates

- You can sell your buying rights to someone else and withdraw  the claim,  negotiate with both developer and new buyer on the payment of the judicial costs ( it seems German and Norwegian have already some money to look for some sun).

It is all a matter of some fluctuants, not rigid factors such as:

- Evolution of the market

- Flexibility of developer

but the possibilities are there ( together with many other ones, I am sure)

that.... together with the awesome sensation of being back in control of the situation or at least of a great deal of it. What do you think?

Could we all together transform the current situation in a win-win scheme?

Please send your ideas and have a great weekend.

Maria

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4 Comments


concerned said:
Saturday, September 12, 2009 @ 6:12 PM

hi maria , are you aware of developers re negotiating prices rarther than going down the judicial route ?


Maria said:
Sunday, September 13, 2009 @ 1:33 PM

Yes, I am.
Maybe not at the beginning of the procedure but yes, once the serious lawsuit is in place.

I am also aware of some developers offering price discounts that take into account the deposit you are trying to claim back.

I think that all is about of looking for an making a good offer.
Maria


Questions said:
Tuesday, September 22, 2009 @ 10:33 AM

Hi Maria

Many thanks for the interesting article which has prompted a few questions.

I am one of many waiting for a deposit to be refunded via the developer and judicial administrator.

You mention that the developer cannot sell your property/apartment until the contract is cancelled.
Is the developer therefore legally obliged to tell you when they have sold your property?

If the developer does sell your property are you then entitled to your deposit back (seeing as you have a contract with no property to buy) or is this a decision for the judicial administrator?

If you tried to cancel but have not received the deposit (plus interest back) are you still entitled to buy the property at the same price as your original contract? Or is this contract now null and void because you have attempted to cancel (albeit though not received a refund of the deposit)?

Many thanks


Maria said:
Tuesday, September 22, 2009 @ 11:35 AM

Questions, I am answering below in capital letters:

Hi Maria

Many thanks for the interesting article which has prompted a few questions. THANK YOU.

I am one of many waiting for a deposit to be refunded via the developer and judicial administrator.

You mention that the developer cannot sell your property/apartment until the contract is cancelled.
Is the developer therefore legally obliged to tell you when they have sold your property? NO, HE IS OBLIGED TO NOT SELLING YOUR PROPERTY.

If the developer does sell your property are you then entitled to your deposit back (seeing as you have a contract with no property to buy) or is this a decision for the judicial administrator? IF HE DOES, HE IS COMMITTING A CRIME. YOU ARE ENTITLED TO YOUR DEPOSIT BACK AS SOON AS THE JUDGE DECIDES SO.

If you tried to cancel but have not received the deposit (plus interest back) are you still entitled to buy the property at the same price as your original contract? NO IF THE CANCELLATION IS ALREADY IN PLACE WITH A SIGNED CONTRACT CANCELLATION DOCUMENT OR A COURT DECISSION, YES IF THE DEVELOPER AGREES SO. Or is this contract now null and void because you have attempted to cancel (albeit though not received a refund of the deposit)?

Many thanks


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