Anyone opted out?

 Trying to find out how difficult it is to get out of the contract. I've been told it can take up to 2 years with a loss of 50% of you're

initial money. The contract has a clause that states you can opt out with no loss if the builder exceeds the 6 months after completion date.

Cheers, Steve

not thinking about it yet as i tied my euro rate...but would have otherwise as price would have gone up £20,000.

were expecting completion in nov for M4 but latest inspection update almost the same as last. if next one in feb not much different i may look into my contract further.

at least i have bank guarantee if builder goes bust.......but how solid is that ? bank may go bust.

all the best ....tim jones, m4 28

 Cheers Tim, I'm checking with a solicitor next week to see if I have an option but I'm not holding out much hope as the contracts seem to be stacked in the developers favor. Plus the developer was or is a Lawyer!!! He wont drop the price either as it wouldn't be fair on people who have already bought.

I'm due to have the final documents to sign next week but once we sign I hear we could be down 20 or 30% of the original value.

Not the best start to owning a property in Spain.

interesting !  keep us updated on your solicitor's comments.

what phase are you on.....m4 like us ?

you say you are ready to sign soon...so your discussions with your solicitor are urgent then !

also, does that mean all the pools, green areas, trees, sports areas are complete like they told us they would be before any completion was allowed ? my fear is that they may skimp on the luxuries, although medsea estates told me this wouldn't be the case due to strict planning provisos with the council due to it being in a nature reserve.

when you say you will be down 30% is that  due to the falling pound and because you bought at a very early  stage before building commenced ?

stay in touch and i hope to meet you there !

I have given notice on my contract which has a clear unconditional statement about cancellation after the 6 month delay period has elapsed.. Frondoso refuse to honour the contract. I have contacted the Bank de Valencia to call on the Bank guarantees as the builder in material breach of contract  [ I am a uk contract law person] and as yet the Banks refuse to honour the guarantees nor reply formerly to any correspondence.

I understand that the norm is for the purchaser to refuse to sign the completion papaers due to a significant delay forcing the case to court and rather than a refubd the judge orders compensation to be paid to the purchaser for the delay as the developer is in material breach of the contract.

Given the exceptional circumstances with the sterling/euro and the ever ongoing delay I am going to hold out for a full refund as I can see the pound being worth .5 of a euro within  3months as a result of Gordon Browns borrowings and cash printing policy. So a little bit of compensation will not cover the 100% increase in the price of our properties which are worth no more now then three years ago!

What a mess I think the mistake was buying on a development with such a long build period that has almst doubled!

We need to forge an alliance here

 I signed my contract in april 2007 and the house was due for completion may 2008. Part of the reason for the delay was the building of the infrastructure, ie sewage, roads, water etc. The local planners wanted all of the infrastructure in first which held him up. This is what I've heard but it could be a smoke screen to cover the 6 month get out clause! Unfortunately the legal system is not like the UKs and I think it could be a case of just how much we are willing to lose, to break even will be a miracle,

Its amazing how quickly the want the deposit but you become the leper when you want it back!

 Sorry Tim, About the pools. I've been told the end of May but I'll believe it when I see it! The 20-30%. I bought mine for around €235,000.

The majority of property in Spain has dropped in price due to the recession, Murcia is still very popular with the locals but the forecast is for

house prices to drop in value. With the Euro at its current state the UK buyers  will be holding off from purchasing and the Spanish buyers will

also be getting very nervous and hold for a reduced price.

Three options:

1. Buy the house and hope to rent for 4 years until the value returns.

2. Buy the house and try and sell it asap

3. Fight the contract.

Cheers, Steve

Dont be fooled by all that Spanish retoric that the contract does not stand.. it does see artical below

The Aval Bancario (Bank Guarantee) or Insurance Contract were both established by a 1968 Law to protect buyers in off plan developments.

• The developer must guarantee the devolution of the deposited amounts plus 6% of annual interests rates, through an insurance contract or by bank guarantee, for the cases when the construction doesn't start or doesn't finish in the agreed time.

   

  They also need to open a special bank account for your amounts (different from the general one of the developer) and have it expressly written in the contract.

   

• In those contracts where the parties agree on anticipated amounts, the developer must expressly state:

   

  a) That the developer will give back to the buyer all the advanced
  amounts plus the 6%, in cases where the construction fails to
  start or end within the agreed deadline, or the certificate of
  habitability is not granted.

  b) Reference to the bank guarantee or insurance contract,
  indicating the name of the Bank or the Insurance Company.

  c) Specification of the Bank or financial institution and the
  account number where the buyer's money is deposited.

  At the signing of the contract, the developer will give the buyer the document that contains the guarantee (the Aval or the Insurance Contract) and the document must have a reference to the amount that is anticipated.

   

• If the deadlines for starting or finishing are not met, the buyer can choose between cancelling the contract with the devolution of advanced amounts plus 6% annual rate, or to concede a time extension, which will be stated in an additional clause in the contract, specifying the new deadline with the date for finishing the construction and completion.

   

  The insurance contract or the bank guarantee together with the document that fully proves that the work has not been started or that the completion deadline has not been met nor complied, will have executive power as it is stated in the Title XV of Book II of Civil Procedure Law, to demand from the insurance company or the bank, the amounts that the buyer is entitled to, without prejudice of any other given rights also applicable.

 Thanks for that, is that from legal sources and if so what would be time frame?

Its probably as fast as the build at Frondoso so your great gran kids might see the benfit of it!

No idea on timescale my guess a min of  1 year...

From my point of view the build time has been significantly delayed due to the total lack of resources to tackle the vast earthmoving / ground stabilisation work required at the off set.. the site was not equipped correctly with the correct plant to do such a task and was tackled with a small 360 deg excavator and 8 wheeler quarry wagons rather than earth scrapers and a moxy. [ i am a civil engineer]

I was told that a planning issue also delayed the work, something to do with the roof terraces / tiled areas but i am not sure that it was true. I visited the site in Jul 08 and had a report done in November and NOTHING had been done to progress my property, likewise to date NOTHING has changed from November till now. It appears that the spirt of progress made in early 2008 ended in July/August. I would also add that the grounds and swimming pools had not even been started. How can you rent a property with no pool this far from the sea and a property smack bang in the middle of a building site. At the original completion date my property was a peg in some dusty dry land.. thats as far as they had got.

Josie has not been very understanding about my request to cancel, in the delay period my farther has been diagnosed with aggressive terminal cancer, and one part of the reason for purchasing here was for my folks to avoid the UK winters as his health had been gettying worse for a while. .. they will never get that chance now. The euro situation is also a factor with escalating costs not just buying the place but running it and getting too and from it.

I am sick of the whole thing, crazy that i parted with almost £50 in early 2006 and its now 2009 and i still would not have a clue when it was going to be completed. In that time a close mate had his off plan property completed, enjoyed it for a year and then sold it for a massive profit... hes laughing at me and to add to my misery a question now exists over my deposit.

The developers seems to be able to dictate to the banks regarding the guarantees this is illegal in my eyes.. I have been chasing my bank since early November 2008 and to date i am no further foward with getting my cash back.. Josie as confirmed in writing that he will not cancel the contract, what right he has to do this when the contract states clearly my entitlement to cancel is anyones guess all I know is its does not smack of honesty.

Whilst i appreciate the developers dont want anyone to cancel the fact is they should have resourced the job so we didnt have any entitlement to cancel by finishing on time rather than running years late on a timescale that was already double all the other developers... planning, scale of the job or not the delay is DOWN TO THEM as project managers.

The whole investment has gone wrong, its worth less than the purchase value, the demand to rent has gone as the tourist numbers have fallen by record levels, my parents are too ill to use it, the cost of getting to and from spain is doubling, and the exchange rate will fall even further... what a complete disaster ...

I just want to draw a line under it as my desire to continue with this property has long gone.

i can only tell you thing, i hope the builder doesn´t give you your money back.
I bought my property and all you say is far from reallity in terms of the lack of infraestructure, machinery and all that.

You say that when they ask for deposite they want it quick but when you ask back for it they are not that fast.
Well , well, well, when you hear about making money you put your deposite quick and try to speculate but when you hear things a getting tough for everybody you want to scape as if nothing had happened, well mates, averything has got a risk, stock market, opening a business, i thing you saw a quick money return and that is what you wanted.
Anyway i can tell you the site, still can give you money back when is completed and with a profit, but again teave the ones who didn´t buy to speculate to enjoy our properties and hold.

Then do whatever you want to do with your property.

I think between spanish and foreign, have probably bought around 250 people and you must be one of the only few that is not happy with the site and the builder.

Never, and i say never is Spain has happened to exists a builder which finishes a site on time and we all know it.

Just a fair comment to say that the site looks great and me, my wife and other friends are looking forward to come to live on it.

Why would you not want the developer to give me my money back? I HAVE A LEGAL ENTITLEMENT TO IT !

I have made a simple polite request to cancel... for personal and financial reasons ARE YOU ABOVE THE LAW?

Do you NOT HONOUR THE AGREEMENTS YOU ENTER INTO?

I have waited 34 months so far! ENOUGHS ENOUGH

What are your motives here? SELF INTEREST

FACT: THE DEVELOPER IS IN DEFAULT

FACT: THE DEVELOPER HAS SIGNED AN AGREEMENT THAT ENTITLES ME TO MY MONEY BACK

FACT: THE DEVELOPER HAS REFUSED TO REFUND MY DEPOSIT DESPITE HIM BEING IN MATERIAL BREACH OF THE CONTRACT.. THE SANCTION FOR THIS IS MY ENTITLEMENT TO CANCEL

FACT: THE BANK GUARANTEE REQUIRES A LAWSUIT

RETURN MY DEPOSIT: IT EASY....ITS YOUR OBLIGATION.... ITS YOUR FAULT!

Oh and just to note I Speculate for a living have done so all my life and a few extra Euros are not my motive here...

My father now has cancer... I am 4 years older so are my kids.... stuff the extra Euro's

I EVEN OFFERED TO WAIVER THE INTEREST to get the thing resolved...

YOU ARE SO FAR OF THE MARK I HOPE WE NEVER MEET!

On reading the posts on this thread, I decided to review my contract to establish my cancellation rights. In summary,  the contract states that the seller has two years from the date of issue of the license of construction by the Town Hall to complete the building work. In addition, the delivery may be delayed by 6 months without any form of penalty.  The contract also states that the license of construction was applied for on 27th September 2006. Can anyone tell me if it was granted on this date, or if not, what is the relevant date?