Recent visit and further delays forecast

Hi all
Having just returned from Corvera on Saturday 27th of September 2008  I must say that I hope in future the weather is not as awful as it has been over the past week. Torrential rain downpours from Sunday all week. Hey Ho better luck next time.

Obviously we travelled to Corvera to see the developments being made and can report that slow progress is being made. On a positive note since our last visit in March 2007, phase 1 and 2 of the development is taking shape.

On a negative note the delay in the building of the hotel at Roda is a worry, together with the fact that the our agent at Corvera, Carmen, confirmed to us that our phase 2 Magnolia Villa will now not be ready in May 2009 as previously indicated, but will definitely now be due for completion in December 2009.

One positive note is that whilst in Spain we visited our solicitors, we arranged our power of attorney, and for them to apply on our behalf for our NIE numbers. Also we collected at the same time, a copy of our building licence, issued on June 2008, which now means that Caledonia will be in breach of their contract with us if they do not deliver the property by December 2009.

Our solicitor had confirmed to us that is correct but feels it is unlikely that the builder will delay any further than December 2009 for obvious financial reasons.

I have not posted any photographs that I have taken for the fact that they are almost identical to the ones already posted.

My wife and I are very optimistic about the development, the fact that The De Vere hotel group are involved, the fact that the PGA golf union is involved, the fact that the course has been designed by José Maria Olazabal, the fact that Corvera will become the European headquarters for the for the PGA, the fact that the new airport is well under way, the fact that one of the largest European shopping centres Nuevo Codomina, (that we had visited) is fantastic, the fact that Murcia is only 15 minutes away, the fact more banks have opened in the town of Corvera which is a sure sign that in future they suspect the financial situation of Spain and that area in general to recover................ ,the fact that the properties and the clubhouse at Roda, is of very high specification and quality............all of this points to a positive investment.

I'm fully aware of the financial predicament we will find ourselves in and so long as we view this acquisition as long-term and by this I mean 7 to 10 years and I'm sure we will all come out hopefully smelling of roses. I do not believe that there will be a decent rental market for many years to come, certainly not until such time as the golf course is up and running together with its club house.

I am an independent financial adviser, tax consultant and accountant and can assure you I'm not somebody who takes many risks in life, but my gut feeling on this development is that it is going to be a good one.

By the way I would highly recommend using independent solicitors such as ours and and can highly recommend them, should any of you wish to contact them please send me a private e-mail and I will gladly provide you with their contact details. They are based in the Los Alcazares region ........ close to Roda.

regards to all fellow Corvereans...........

Thanks for the update and info. Was there any hint or indication that the phase 1 & 11 laurels and Tilos might be delayed?

 I was also wondering if anyone has seen the licence for the laurel and Tilo apartments of  phase 2? If so what is the stated date?

kev

We have just returned from corvera last Friday and I have to agree that the weather was not at its best . 
We visited Corvera and found that progress was good having been told by our rep from MRI that some of the Tilos will be finished and that they have been invited for a personel viewing either this weekend or next, as for the Laurels on phase 1 on the Island, which we have bought, these are scheduled for completion in April/May 2009.
 We also echo the sentiments fom davidleff that this will be a fantastic investment for the future.

Pauline & Steve 

David

Being a fellow Magnolia purchaser, did Corvera give a reason for the delay from May 09 to Dec 09.

Ken

Hi David, thanks for the update.  You say that the airport is well underway, did you actually visit the airport site or were you told this.

Anita.

This morning I was told that the Magnolias were likely to be delayed towards the end of the year but anyone pushing for an earlier completion would be likely to complete sooner. Although I didn't probe deeply it seemed to be the sheer logistics of handing over two complete phases at the same time. I always thought it would be a logistical nightmare. Sounds like Tilos and Laurels are first in line then we follow.

David
We too have a Magnolia. I was over this week as well and received my Building License. Funny, but mine is dated 24/7/08. I find it strange that two identical buildings can have different license dates? are you sure yours is for June? 18 months from 24/7/08 is 24/01/10. We also paid our deposits in April 2006! What annoys me most is that they have been building since November 07. I suspect that they will 'complete' within the 18 months of the contract, but the property will not be habitable, however they will then take 6-9 months or more to get the Habitation licenses.
It would be interesting if anyone has any paperwork stating any 'Completion dates' from their time of purchase? i was told originally Dec '07. If anyone has anything like this in writing we would all have a strong position? Also the fact that the Golf Course is obviously not going to be finished will also have a detrimental effect on things. Surely the Golf Course should have been the first thing to be started and completed?

Hi to all of you:

To clarify a few points:

Firstly to Anita, unfortunately we did not have time to visit the corvera airport site, but had been told this information by the local newsagent in Los Alcazares, Who's Husband works for Murcia airport, and has been offered a job in the new corvera airport. She has first hand information from her husband that the airport will be functional towards the end of 2010. Hope this helps.

Next to Kenny, the only indication that Carmen gave me for the delay in the Magnolia Villa's was because of the red tape and bureaucracy at the local council. Quite frankly this is the same excuse that has always been used and fairly unbelievable, I think the real reason as stated in previous posts is that they prefer a staggered release and that the apartments will be completed first with a Villa's following shortly after.

For ultraclean, apologies for the confusion but on further reflection our building permit/licence is dated the same as yours 24 July, 2008. This means that completion of the Villa must be at the latest 24th of January 2010. Our solicitor had confirmed to us that if the property is not passed to us by that date we can claim under the contract for the return of our deposit monies. I cannot believe that the builders would allow this to happen, as there would be a run on them with everyone screaming for their deposits back.
The real problem here as previously mentioned, is that although  Villas and Apartments may be passed to us, in time, I really believe there will be further delays on the completion of the golf course, delays on the completion of the hotel, and of the remaining facets that make up the completion of the development such as equestrian stables, supermarket, sports facilities etc etc.
On this matter the solicitor advised us that what we would have to do as a group of property owners, is start an action through the Spanish courts to sue the development company for breach of contract................... let's hope we don't have to get involved in this, as I still believe the property company to be reputable, and the tie-up with the PGA and the DE vere hotel group.............. will prove beneficial to us all.

FINALLY    ....... I'm a bit confused by the statement made by ultraclean regarding habitation licenses, I'm confused by this it would appear this is a separate license from the building permit, can anybody shed some light on this for me.

Regards

Hi all

Corvera has stated that the Tilo and Laurel apartments will be completed by May 09. Does anyone know if this means that they expect the habitation licence to be in place by this date? Would I be right in saying that we do not have to pay the final installment untill the habitation licence is in place?



kev

Hi Kev, you don't complete until the Licence of First Occupation has been issued.  This means the property has been passed by the Town Hall and is fit to be lived in.  Some Developers try to push you to complete before it is issued.  This is not legal.  Without that Licence you can't get connected to any utilities.  You would only have builder's supply which is minimal.  Legally I obviously don't know, but I would have thought that 'Completed' would mean exchange of monies, otherwise who judges when something is completed or not - does that make sense!!

Anita

David and Kev
Sorry if Im giving info you now have but in relation to licenses the building permit is justthat a permission to build and is issued by the town hall. The habitation license is also issued by the town hall and is done after they have inspected the property and judged it fit for habitation. As Anita says this is a safeguard for you and also enables you to get utilities connected.
In another property I have bought my solicitor strongly advises that we dont complete until the habitation license has been issued. The builder will put enormous pressure on you to complete and will say it is normal and that the habitation license is only a formality. Dont. Wait for the license to come through first. I have no doubt it will and indeed buyers on the other development who closed without the license received them about three months later.
Regards
Sean

You should NEVER complete on a property that does not  have a Certficate of Habitation issued as they are not granted automatocally and there are lots of articles in the press regarding

Also I can send people a Q&A document and buyers guide that expalains the importance of getting this document before completio, even more so in these difficult financial times

In addition more banks will not ssue mortgages on propertes without an LFO and rental providers will not take them onto their books

In support of Caledonia on RODA the certificates were in place for completions and, when there was a delay they did not force people to complete

dear davidleff,

thank you for the recent info that you posted . just wondering can you mail me the solicitors contact details that you are using as my wife and i are visiting the area next week. many thanks.

nollaig

I can say from recent experience. A property was 'deemed completed' in December 2007 (exactly as per the contract). Although the villa was not habitable I was told that the builder had filed the paperwork saying it was complete. We eventually 'completed' in June 2008, after we received Habitation Licenses, completed the snagging etc. This was at a low density built, quality resort. I fear that Calidona will be equally adept in using the law to their advantage. File for completion just within the 18 months, but it will take a very long time to get the Habiation Licenses. I am only guessing, but suspect that i may be right?

Thanks for the info Ultraclean, I would not be surprised if your recent experience is repeated,  personally with the current economic climate I would be glad of a delay, it would also give the golf course and other facilities a chance to catch up.


kev