Did developer make changes? - Abusive-Null and Void
Tuesday, June 24, 2008 @ 8:26 PM
It is frequent ( almost a general rule) to find an off plan purchase contract with a clause which says something like:
" The buyer gives permission to developer to make those changes required by technical or legal reasons"
Well... that is an abusive clause and therefore, it is null and void. You can ask for compensation if those changes were not expressly allowed by you and for cancellation of the contract if there are substantial changes that derive in a " aliud pro alio" .
The clause for the legal regulation of possible changes between what is being contracted off plan and what is finally handed needs to meet these criteria:
1.- Reasons for change need to be expressed in the contract. It is not valid those generic references to " Act of Nature", " Force majeure", " unplanned circumnstances", " legal or technical reasons"
2.- Reasons need to be valid reasons: There are some parameters to judge on the validity of the reasons:
- Fact which happens out of the control of the developer´s activity ( it is not the denial of license, which is a regulated by Law, controllable and predictable fact)
- It needs to be unpredictable ( rains are strikes are predictable, as they are commun and frequent every year)
-The exact fullfilment of the contract needs to be specially costly for the developer
3.- The financial settlement needs to be established in the same contract
- By reduction of price
That reduction of price needs to operate too if the changes consist on a lack of quality .
If the defect is meaningful: cancellation.
By Maria L. de Castro
web@costaluzlawyers.es
www.costaluzlawyers.es