DE COTTA MCKENNA AND SANTAFE LAWYERS V POLARIS WORLD

News today that Parador properties are in voluntary administration. They have stated that agreements are between developer and buyer. Parador were merely acting as an  'introduction'.  Any thoughts on this one??   Afraid I can't put mine into print.

Parador where on a commission basis and if they where  paid by the builder when the property was completed then this could mean that this commission could be available to the purchaser if and when the properties are completed. I am not just refering to this complex.

Agents are normally paid commission from the builder when buyers have paid their 30%.

Copy of Official Communication - I don't think it needs further comment!

Parador Properties, which was once considered to be one of Europe’s top estate agents, has gone into voluntary administration.

The company had operations in Ireland, Spain, Sweden, the United Arab Emirates, and the UK, though most of the homes it sells are located in Spain.

The company took a client-centered approach to property sales by flying prospective purchasers to their desired destinations and offering advice about specific areas and communities. Simon Lambert and managing director Jack Hamilton founded Parador in 1998.

Homes Overseas received a statement from Quay West Communications, Parador’s PR company, moments ago. It says: “It is with regret that Parador Properties has announced that, due to the downturn in the overseas property market, it has gone into voluntary administration. This does not affect property purchases by any of its clients, as all contracts were made between the individual client and the builder; Parador Properties acted only as an introductory agent.”

''Parador Properties acted only as an introductory agent.”


Tell us about it !

hi guys..its Parador UK that have gone into administration - Parador Spain are still operating from their head office in Torrevieja! Just spoke to them now! They have a telesales team operating from there..just the UK agents are no longer....

As I understood the set up at ACC, Parador are the promotor, Huma the builder. Parador Spain got the exclusive of selling ACC, no matter the agent you used (parador got a % on all sales). Parador took over the running of the sales side way back, but was not the first company, another was dropped by Huma due to lack of sales. For instance, everyone who worked at the site, beside a few worked and was employed by Parador Spain. Parador was not just an Agent introducing you to Huma. Huma wouldn´t have the assets to provide all the bank guarantees on the proposed project. Bank guarantees are placed against a companies assets, hence Paradors increased involvement. If not, they would of washed their hands of it long ago.

Hence, if your going to take anyone to court, Parador Spain is responsible for marketing a product illegally as no permissions were given at anytime and they would of had full knowledge.

Its never been a hidden fact and anyone who asked the local townhall would of been told that building permission had not been granted, 2nd stage licence etc.....is like buying a car that had not gone through crash testing.

I agree, Parador were not just an agent who 'introduced ' clients to ACC. Their agents told us that ' we never ever sell properties that do not have the full legal and planning paperwork'. They said that ' other agents sell when only provisional licences are in place, not us, you can be sure that everything is in order.'    Their clients trusted their advice.

So, they were selling properties with misinformation. They are now saying that they were just an introduction as a cop out so they do not have to take some responsibility for their actions. They surely must  have been misselling.

We have tried to complain to the AIPP of which Parador are members, but we found that this organisation is really just a body who collect fees from members and do not really regulate the agents. Anyone can be a member, if they pay, basically.

Not only did our agent mis sell our property, but our solicitor also assured us that the licences were all in place. Really we should be taking all of them to court, trouble is, we cant trust the judicial system to protect us either. 

What an experience !!!

Agreed, I was told the same, Huma is a repuatable builder with all the correct licenses etc in place.....bull~?~~@
Parador mis sold and now cop out by saying they were an agent only. thieving crooks!!

I agree with what you say ,even when we were taken to a recomended solicitor  fuster and co by our very nice parador rep when i questioned the solicitor as to the high cost of legal fees etc we were informed that it was to cover the work involved in ensuring that Huma were the legal owners of the land that was to be developed as the Acc and that all relevent liceinces and documentation was correct and in place!!

We were assured at this point that everthing would have to be correct before our stage payments were released to huma ?

Both stage payments were released without the hint of any problems with only 1  payment out of 4 made getting the benifit of a bank guarantee...

Wow, i´m so suprised that a solicitor relesed funds without  some letter from the bank stating that they are holding Huma´s assets to be able to issue a BG, They had 3 different banks doing it (one after another), so as a guess they was running out of capital and hence no BG on second payment. You must have seen bank signs outside building sites, thats the bank to ask. Remember, BG are not automatically given, it is not law too either, they only have to offer one and its up to you to pursue. Taking a BG from a builder puts his assets at risk, yes you pay 30% for the house to be built, but the builer will have to give up a lot more ie. land, cash and property to cover them.

A simple and sure way to find out if there are any problems with a property you want to buy, ask the developer which bank they are using, a good company will never spend their own money or yours to build the property which is for sale, they will take individual motgages on the plots, this is a stepping stone pratice. The builder can effectively build with a fraction of using its own fund, they will still want 30% (this buys their next project & pay agents commission), but by asking their bank if there is a mortage on your selected plot, you know everything is in place and legal, this can save you thousands of pounds, firstly you don´t have to pay a solicitor to do initial checks too find its illegal (waste of .5 to 1% of value of property) and you can´t buy it and secondly, that mortgage will be transferable and again this will take out the 1% set up fee (you may even get a better rate).  (you will still need a solicitor for contract and notary)

The Spanish system is not flawed, its pretty good, but always rememeber, they are all strangers...agents, promoters, builders......people in the bar etc, 

maybe i should write a book.............i´m full of useless info


This message was last edited by lostproperties on 9/7/2008.

lostproperties,

Yes, you are full of useless information, what a load of claptrap. A Bank Guarantee is a LEGAL requirement, no ifs, ands, or buts. We have enough mis-information from lawyers without your drivel. I am sure you may be a very nice person, and I don't want this to degenerate into some sort of pointless argument but please before you start giving out information make sure you have your facts straight,.
One other point from one of your previous posts, Huma was the developer, not the builder. Ferrovial were to be the builders.

This message was last edited by annie1 on 9/7/2008.

A Bank guarantee has to be given (not just offered) by the developer, this has been law since 1968. It has to be given at no cost to the buyer. a further point is that the developer has 'purchased' the bank guarantee for it to be given to the buyer. There is no excuse for a bank not to honour the BG.

That just shows you as a novice and in the hands of a so called reputable company Parador,we were informed by the rep that Bank Guarantees were not a legal requirement but Huma was such a good company that it was giving its cusomers Guarantees.

We were informed that there was usually a cost to the purchaser for the issue of B.Gs but again this was wavered by Huma,! what a great company!! The sort you would want to do business with,!

After many calls to parador spain i was informed that B.Gs were being issued,at that point we were holding just 1 issued to my partner for the second stage payment delivered to her direct from Huma.
What happened to the first stage B.G ? and what ever happened to mine, both of them?

It is over 4 years ago that we parted with our money ,not as if we were at the end of the line in order of B.Gs ??

Does anyone have an up todate address for both mail and e-mail for fuster+co ?

Thanks 

Gary