Food for thought!

 I am not a great believer in internet forums, as the number of posts I have made will testify. They are a great place to exchange information, but, they are also a great place to spread rumours. My rule of thumb is “those that say the most have the least to say”.

However, I offer the following as “food for thought” in the current climate.

If, and I do say IF, the rumours are correct, and Peinsa do, at some point, go into liquidation, what will be the effect on all of us (buyers). Let us look at a couple of scenarios.

If Peinsa tell me that my property is finished. My bank guarantee no longer applies. If I don’t complete and Peinsa liquidate, my deposit becomes an unsecured creditor and the chances of getting it back are no more than a snowball in hell. If, however, I do complete, then the property is mine by right and no longer an ‘asset’ of Peinsa to be disposed of at the will of some third party. Perhaps it would be better to pay the balance and complete as soon as possible.

If I am on a later phase and there is no chance of my property being finished in the near future, what then? Surely I must ensure that my bank guarantee is as watertight as possible. In this way I will be assured (albeit after much work and expense) of getting my deposit plus interest back. (There still seems to be some conjecture as to whether an “expired” guarantee is as valid as any other)

In a nutshell these are the only two decisions I have the ability to make.

So, action is required rather than words. If you are in a position to complete, then complete. This, in turn, will make the chances of liquidation subside, as more cash is injected into the company. Bear in mind, that the deposit you have paid (if under a bank guarantee) is not held by Peinsa, but by the bank specified on your guarantee.

Am I right or am I wrong? The simple facts are often the best. Do you want the development to be finished or not? If you do, then do something positive to bring it about. What I see so far is going to have the exact opposite effect.
 

Jon

Jon

You make an excellent point at the end of your post. Getting the thing finished is in all our interests and does reduce the (at least) the chance of Peinsa liquidating. However, if they have no workers on site it cant happen.

Maybe a good way is for those of us who are on later phases to form a group to deal directly with Peinsa to try to move them to finish the site so that we can reciprocate with a speedy completion. I am a member of a similar group on a different development and we have engaged new lawyers to represent us. There are about 100 owners coming together which makes it cost effective in terms of legal fees but also we are a strong voice when dealing with the developer. (by coincidence one of the builder on that site is also Obralia!!

Best regards

Sean

Hi Jon & Sean,

Agree with the points you have made but the problem ijn my case is that I have no faith or trust in my solicitor . After nearly 3 years I finally received a bank guarantee which is only for 5 months and expires in January 2009. My house will certainly not co mplete till / A pril if work commences now and based on the experience I have had getting the first guarantee I hold little hope of getting a renewal. I agree with Jon that I would be willing to complete now and negoptiate a price reduction  and if we grouped together employ another builder to finish. I would even except if Peinsa agreed to renew my BG but I have little faith in them doing that.

I still want the the house but I am now seriously thinking of calling it a day and getting my money back.

Regards

Paul

I think you should take advice from another lawyer

I understand that a Bank Guarantree under Spanish Law can not have a deadline but I am not a lawyer

But if it does state a date, and it is not lawful, may take time to prove it in a court

Many seem to have one !!....typical banks worldwide!

I have BG for Sun Beach opposite you but it has no time scale...which is  ' I am told ' is correct and in accordance with Spanish law

Take legal advice as it is your money at risk but if it does state a deadline in January then ' execute it now...today' ...just to protect your money

You say you want your home in San Juan' and it is a great location but....... there are rumours about the completion of your development.....may be right and may not ....but why take a risk

Get your money back first......that is if the BG has a written  date.....you can always buy again at a todays  price or  any decent agent can find you a good buy in San Juan....or other locations nearby at a very competitive price

In the current economic situation do not take risks

Paul

I understand your position and fully understand why you would want to chase your money at this stage, Im in the same boat (except for the problems I am having with the BG). I too still want the house and I am prepared to get invloved in any sort of a like minded group that would talk to Peinsa, get completion by one method or another.

I am involved in another development further up near Murcia which is still going ahead and making good progress but our problem there is that we are worried that all the promised facilities will not be delivered. We have formed a group and we are engaging new legal representation but the prime aim is to deal with the developer to ensure the development gets done.

I think we could do the same in Calas. I am prepared to take up the running if there enough people willing to joing in - so if anyone feels there is merit in this approach please pm me. If there is sufficient interest I'll set up a separate forum for communication and to discuss startegy and tactics to be used.

My motivation here is simply to get the buildings done and to have access to CDP as we all wanted when we bought.

Best regards

Sean Curtis

Hi Sean, we completed on our house in CDP a fortnight ago and we are glad we did. Our BG ran out in March and our solicitor has been chasing Peinsa to renew it since then.  He told us that the Spanish banks are just not giving out BGs any more due to the housing market and that three promotors in the area had gone bust.  He was of the opinion that one of the building contactors had gone bankrupt but that another company was stepping in.  It would be a shame if after all this time we don't see a thriving little community there.  I hope you get the support you need.  If there's anything we can do please PM us. 

Jo and Jim Ph3