BANK GUARANTEES

HI All

Why would I like my deposit back when promaga miss the completion date?  

This is aimed at anybody who does not quite grasping the situation. Lawyers  / ADH.

First Reason

Phase 4 apartment 4 bed prices  Feb 2007      

Euros 325,000   + costs fees mortgage arrangement  10% -12%   exchange rate  1.45 euro

Total325,000 + 35,000 =  360,000 euro =  248,275 pounds

Today’s buying cost   £287,230.05 GBP      minus             2007 buying cost  £248,275 pounds

£40,000 more

Second reason price reductions        (see some prices as today) Vista Hermosa

I am sending you 5 different properties, one flat’s price of two bedrooms, two flat’s prices of three bedrooms, one three bedrooms townhouse’s price and 4 bedrooms townhouse’s price:

Block 13 portal 3 ground floor left. Semibasement garage S-13 and one parking place at street level c-99, + store room nº 9: prIce 267.880 € + 7% VAT 3 BEDROOMS+ GARDEN

Block 13 portal 1 ground floor. Semibasement garage S-1 y c-86 + trastero nº 11:                   price 276.760€ + IVA   3 bedrooms+ GARDEN

Block 13 portal 2 ground floor. Semibasement garage S-04 y c-96                                   

price 223.000€ + IVA 2 bedrooms + GARDEN

Three beds house price 290.000 nº 28 type L

Four beds house price 316400 nº 13 type b

You had to pay as well the  7% vat and the deed fees ( notary).

These properties will be available in a couple of weeks, I could discount only a 3% less of each price.

For information your information.

Bank guarantees it should be quite simple.

Types of BG
1.- Ordinary BG.-This BG cannot be claimed upon immediately by the purchaser in case the developer defaults. Prior to executing it, it actually requires a judge’s ruling stating that the bank ought to refund –or not- the off-plan purchaser. This means that the purchaser will actually have to engage the services of a litigation lawyer who will claim upon said BG in a special executive procedure. The litigation expenses are borne initially by the purchaser albeit may normally be claimed back from the bank together with the full refund of the stage payments and legal interests. This is the most common type of BG which is set up and one cannot argue that it is illegal or unlawful, it is just less practical.

2.-“Aval a primer requerimiento”.-This is just an ordinary BG which includes a special clause by which it can be claimed upon immediately by the conveyance lawyer without the need of a judge’s ruling. This is really the ideal BG to have because it saves the hassle, stress and additional expenses of having to go through a court procedure, even if it’s an executive one.

So why were we not told about the second type of bank guarantees anyway.  

It has been very quite lately on the threads about the development hopefully be can get some positive and constructive input back into the threads.

Thanks Calvin

Hi,

I bought in 2004 and I already have the IVA included in my instalments, so I do not think that I have to pay this again ( i hope not). I do understand that prices have gone down and if you can it would be wise to cancel the contract  "get out" and buy cheaper. But knowing this company they will do the utmost to stop this.

Sincererly I just hope that the houses are finished because with the current global situation and crisis it will be interesting to see if upon completion a Spanish bank will be willing to provide you with a mortgage on a higher amount than the current market value.

I think I am okay "if completion goes ahead" as I was one of the first ones to buy, but I do understand that it might be difficult for people who bought when prices had gone up.