Current situation at Golden Beach

The current news for any buyer is that they are only going to finish the blocks already started and the rest of the development will be mothballed until the recession is over

The golf course is finished but not open yet

They are giving buyers of the blocks ,which will not now be built straight away ,an option to change to another apartment in the blocks being finshed ,and perhaps some free upgrades 

Worth looking at but not for me [ I was a buyer in the block near the medical centre and the beach] and in any case there are other alternatives which may now be a better deal 

For example in the block which is expected to be finished by August 2009 there is a 2 bed apartment at 249.000 € but as an alternative I  can find you a very nice 3 bed villa ready now on a plot of 300m2 at an 'asking price' of 265.000 €  !

So before taking the developers alternatives look around!

I am also waiting for Block 6 and have just heard that there is a further delay until 30th September 09.  What would happen to the 25% deposit I have put down on the apartment if I chose to buy elsewhere?

Depends on your contract

If you are in the blocks now part built I think they expect to finish within the contract time but if not then you can exercise your bank guarantee

For the blocks they have decided not to build I understand they are giving back the deposits relatively quickly but will know for sure as soon as I receive mine back as I am in a cancelled block

Have we bought in the same block?  My apartment is beside the medical centre too, so is that one of the cancelled blocks?  It is getting to the stage where I am getting tired of waiting - I put my deposit down in April 2007.  How do I exercise the bank guarantee or will I get the deposit back if the block is cancelled?  I bought through Masa, but are they the relevant people to be speaking to about this? Thanks.

Yes I am in the same block and I am just cancelling now

if you want more details send a PM or you can use the web site contact details

Hi everybody,

I've been neglecting this blog. I've been pre-occupied with San Antonio's financial difficulties at Fortuna Golf. What is happening at Golden Sun? I've put a deposit on a pent-house apartment in block API-1 Is this going ahead? As far as I've been told, it should be completed in September 09.

I've checked with my solicitor regarding bank guarantees and I don't appear to have one either for Fortuna Golf or Golden Sun!!  What I can gather there doesn't seem to be much benefit with bank guarantees if the developer goes into administration anyway.

I would appreciate some up todate information from someone who obviously knows more than me.

I bought through IAP.

Regards,

Terry

Sorry Terry but you are wrong with the comments on the BG and the failure of the developer to issue one breaks Spanish law

It is a vital piece of paperwork and something that your lawyer should advise you on plus it does  give some protection if the developer goes into administration

Hi everyone,

I agree that a Bank GUARANTEE should BE IN PLACE TO GIVE YOU PEACE OF MIND.I assumed that one was in place for my property at Fortuna Golf. It was only when San Antonio, the developers were in serious financial difficulty that my solicitor informed me that one had not been issued. Apparently only a very few were issued on that development.

When I enquired about a bank guarantee at Golden Sun I was also informed that one was not in place. here either. Now I don't know enough about Spanish law to know what the situation is but I  urge everyone to check with their solicitors to make sure one is in place.

 I have been advised that  If  you are lucky and have a bank guarantee in placeand it is  invoked, then it is likely to take some years to work through the Spanish  legal system.That's all I meant.

Does anyone know if API-1 Block 1 is going ahead?

Regards,

Terry

Hi everyone,

I agree that a Bank GUARANTEE should BE IN PLACE TO GIVE YOU PEACE OF MIND.I assumed that one was in place for my property at Fortuna Golf. It was only when San Antonio, the developers were in serious financial difficulty that my solicitor informed me that one had not been issued. Apparently only a very few were issued on that development.

When I enquired about a bank guarantee at Golden Sun I was also informed that one was not in place. here either. Now I don't know enough about Spanish law to know what the situation is but I  urge everyone to check with their solicitors to make sure one is in place.

 I have been advised that  If  you are lucky and have a bank guarantee in placeand it is  invoked, then it is likely to take some years to work through the Spanish  legal system.That's all I meant.

Does anyone know if API-1 Block 1 is going ahead?

Regards,

Terry

Terry

I know that the blocks near the medical centre are not going ahead and the developer is offering a change to a possible upgrade on the blocks which will be finished

I am surprised that you did not get a BG for this developemnt as they were available

Anyway if you are in a block not being built you should not have any problems

Anyone want any more info please get in touch

BG is not just piece of mnd but a legal requirement under Spanish Law for any new property purchase exactly for the problems that yo are having

If they go into administration without a BG you are just another unsecured creditor

The clever thing that the developers are doing is not actually making any public statements when they withdraw from the building of a project as seen at La Tercia Real and therefore the only event that will then allow buyers to claim is when the agreed contract date, shown i the BG, has been exceeded

The BG costs the developer money, they have to conform to certain financial controls including ring fencing the money received which they then cannot easily use for construction costs so they would normally deposit the money in a seperate account proving the properties were sold, along with the staged payments and then mortgage the land and build

The issue mow is that with falling property prices some valuations are coming back lower than the builders mortgages and cash flow then means that the developer cannot discharge the mortgages resulting in cash flow problems and sometimes making it cheaper to stop developing and wait for the BG claims to be made

If you have a valid BG and proof that either the contract date has been exceeded or that the development will not be built the claim process, using a good lawyer is quite simple and quick

Some problems happen when the lawyer may have connections with the developer and is not quite as independant as he should be and a BG has not been issued, or when the BG has expired and then it is a much more lengthy and expensive process to recover money

Your lawyer is at fault if he did not advise you about the requirement for a valid BG at both the sites where you bought

we have bought in API-1 block 2 and are concerned about the general state of the site in terms of infrastructure and facilities and the fact that it appears as though the rest of the development will not be going ahead.  we also bought through IAP.  The development is already behind schedule and it would appear that there is a lack of any real activity on the site to complete the infrastructure and we believe that the rest of the development will be "mothballed".  Look forward to hearing from anyone to share views/comments etc.

BIKO100  

Hi Folks,

This is my first property abroad and it's all a but puzzling.

I was there at the weekend will upload pictures in a bit.

We bought through IAP and actually saw inside the finished block (block 2, floor 3)(Northern side of the development by a new roundabout)

We saw our apartment and it all looks good. They say that they are just waiting for "habitation licences" for the finished block.

Does this mean we will still have to buy it at the price from IAP? Can we negotiate a discount because of all the delays? Does anyone know if IAP got BG for this development?

Thanks in advance for any help.

TimC

First of all it is not IAP that gets or holds the BG it is issued via your lawyer to you so your should be asking your lawyer

Most contracts allow you to excdercise a right to cancel if a property is late and this is normally via a BG or you have to go to court to recover the money

Some contracts include a compensation cause that allows for the payment of compensation if a property is late

If however you don´t have this clause or if you have not excercised the right to cancel then it is highly unlikely that you will get any reduction on the original contract price

Legally the property is not complete and you don´t thave to complete until the Certificate of Habitation is issued

Due to the recession it does appear that Torrevisa will finish off the blocks they are now building which will proably include the block adjoining yours which is just coming out of the ground

They are very attarctive but to be realistic the price paid a couple of years ago are now above market value

However long term I suspect they will turn out OK...it is a very attractive location and perhaps one of the best beaches in Spain...I was in the sea there this week...you can go out circa 125 m and still touch the sandy bottom! 

The blocks near the medical centre and beach have been cancelled for the time being and the villas I think are also

The golf course has been built but not open yet

From my experience the  bank guarantees issued by Torrevisa are good ones and if you are in any doubt about your own situation you should take legal advice 

As you would expect both myself and any agent can find you a similar apartment now much cheaper...lots of distressed sales..eg  2  bed duplex in Palomores , seller paid 185.000 € several years ago but now has to sell at 130.000 € to clear the mortgage!

Do not complete without the Licence of First Occupation and all the promised facilities.....and with legal advice review your options

Thanks for the advice. I'll contact our solicitor in Spain and see where we stand.

Hi.....

Hope this the right spot to ask a question.

We have one of the green-topped villas and are fortunate to have a view over the proposed golf-course.

We were out from the 17th - 24th June. Everything looked great but there were some worrying signs eg

No sprinklers were working, at all ,for the whole week!

For the last 2 years we have been used to little green buggies with workers on board going to and fro......not a sign for the whole week !

The little 'depot' is now pretty much deserted - no buggies or mini tractors or workers' facilities etc.

Has worked stopped altogether? Is it a case like Calas Pinar that there is a little 'hiccough' or have things ground to a halt?? 

Anyon ehave any info??

Jo

Hi Jo,

I have purchased one of the apartments in block six down beside the medical centre - unfortunately these apartments are not going to be built now so I am in the process of trying to recover my deposit.  I hope everything turns out ok for you as this is a super little town and I'm disappointed that I won't get the chance to live there!

Kind regards,

Joan

What Joan says is true and you should receive via the bank guarantee both your deposit and interest at circa 5/6%

They may offer to just repay the deposit but if you are firm they will pay interest

Just now there are alternatives in San Juan..re sale apartments close to the beach at competitive prices..also villa which are about the same price as the larger top floor apartments

Hi All,

I'm little late in joining this forum but I wondered if anyone has a more up to date picture on Golden Sun. We purchased through IAP and despite numerous enquiries to our nominated solicitors Plus Advisors, they have still not confirmed the situation regarding the Bank Guarantee.

I'm assuming that they're dealing with hundreds of other similar enquiries since Torrevisa entered the administration process but equally we're reluctant to ask the advise of alternative solicitors until we've had clarification from Plus Advisors.

Any more recent update from those in the know would be appreciated.

Many thanks

Paul