Corvera advise legal proceedings will be taken against purchasers failing to complete

Can Calidona really take legal proceedings to force us to complete? I thought that the contract says that if we do not complete we forfit the deposit - nothing else (as if that isn't enough!)

All this threat of legal proceedings is worrying as I am sure most of us still have equity in our homes in the U K etc or businesses - how vulnerable do you  think our UK assests are?

how many of you have asked maria de castro what she is advising? pm if you r working with her too!

crg

Hi

My Spanish Lawyer (not MRIs) says that you can't be sued for any UK assets, only Spanish assets (if they find out about them).

Trevor

corveragolfapartment.co.uk

Hi Cazbaz

Re your question about legal action...Item 16 on page 9 of the contract (mine anyway) says that Calidona get to keep the deposit as a penalty if the Purchaser does not complete. But it's clause 7 on page 6 that's the killer punch and carries the serious implications. If you look up on the net Article 1.454 of the Civil Code (which this clause refers to), you will see why the monies we have paid thus far have not been described anywhere as deposits or down payments. In fact, all payments made have been specifically termed 'partial payments', and therefore the protection offered to the buyer by Article 1.454 to cancel the agreement and only lose the deposit as the penalty is avoided ie...extracted from the web: "the seller then has the right to demand Contract fulfilment. If the buyer desists the seller may demand him to buy for the agreed price". Clause 7 of our contract states ..'under no circumstances shall the provisions of Article 1.454 of the Civil Code apply'. Just to make matters more difficult, under clause 6 on page 6 Calidona are entitled to interest on any due amounts that are not paid up on time. Sorry!
 
In practical terms the Calidona legal team are going to be very busy taking each individual case to court. It will literally take years, given the large number of buyers likely to default because they simply don't have access to the funds to complete anymore. Meanwhile the ownership of the properties will be in limbo and they will remain unoccupied. I would think it far more sensible for Calidona to keep the deposit as the penalty, cancel the contract and then remarket at a discount at least equivalent to the 30% to 40% deposit that they already have in their bank account. If they concentrated sales efforts in Germany for instance, buyers would get the benefit of the discounted price, are not adversly affected by the value of the euro and are able to take out a mortgage at rates much lower than we were prepared for in 2005 when we put down the deposit ...sorry, partial payment!

I know Calidona are threatening to take legal action as ploy to get those that are wavering to complete, but in practical terms this will be a costly and lengthy exercise...so Calidona spies, if you are reading this, take my stategic business advice as above...there's no charge for it!
 

Stuart99

This message was last edited by Stuart99 on 3/4/2009.

Hi Trevor

That's interesting about your Spanish lawyer's view on assets. My UK solicitor has written to me saying  " you may find that they will get a judgement against you in default and that could result in you being made bankrupt ". But then he does not specialise in Spanish property law.

I'm just about to appoint a Spanish lawyer and grant POA. From my previous post you will see that  it seems Calidona have the right to persue contract fulfillment, but I now think the contract was flawed to start with and and am prepared to go to court if needs be to have it cancelled.
 

Stuart99

surley there are consumer laws that prevemt them from abusing their power! especially when it comes to the huge delays that we have seen - they could in theory never had applied for the permits athus keeping our money without an end product!!?

Just an update to my original post.

In answer to a question I put to Pablo about  Schedule 6 of the contract ie "Agreement for the Assignment of Contractual Position", I have now received written confirmation that this part of the contract has been revised and it no longer stipulates that the price the contract can be assigned for has to be the same as the amount made as partial payment to Corvera, In fact there is no longer any ref to price on the schedule. Pablo has emailed me a revised copy. In theory this should make it easier to sell on the contract , since you could charge just £1 for it if you really wanted to end your contractual involvement and walk away...not that you would find anyone wanting to take it on, even at £1...believe me, I've tried selling my 71000 euro deposit for £1 and failed!!

Stuart99

Stuart 99

I am indeed very sorry to read of the financial problems you and others at Corvera now face re completion. I fear there has always been some element of risk in being involved in off-plan purchases for Overseas Property, whatever benign economic and exchange rate conditions may have prevailed at the time deposits are first paid.

As you know Spain has for many years been notorious for property scandals, planning problems and disputes and building delays, plus of recent years totally mindless major speculative building projects running well ahead of any possible logical buyer demand.  So now we see 'Ghost Towns' of completed developments with unsold units, or partially built and now abandoned projects. In the view of most property commentators the Spanish Golf Course planning consent and development scenario had got completely out of hand. With upwards of a million or so unsold units of every type in Spain, what the actual market values of properties are at the moment is anyone's guess.

As the developers at Corvera are still building units and have largely completed the infrastructure, albeit very wisely delaying the last phase in the light of market conditions, I should not despair of off-loading your Euro deposit for a song or hopefully better to some Eurozone resident. But  please do take highly reliable legal advice on that issue and ensure any transaction is 100% legally water-tight  on every possible count. There will be property investment 'speculators' appearing towards the bottom of the property market slump and recession willing to buy from 'distressed' sellers to make money on their own account, they will be taking a very long term view. In your case time is rather short I imagine before you are due to complete, nevertheless I sincerely hope things work out for you and others.

Regards

MP

It's worth taking a look at Maria del Castro's recent blogs on this forum - Legal tips 57 & 58 on "El Blog de Maria".

Difi or anyone, can you post a link to those points on maria's blog. Not sure where i find it on this website

many thanks

I Think this is the link to Maria's blog  www.eyeonspain.com/blogs/costaluz.aspx

kev

If that doesn't work go to COMMUNITY at the top of the EOS page - scroll down to "All blogs" to take you to the blogs page then look down the right hand side under "Most Popular Blogs" you will find "El Blog de Maria".  When you click on that it brings up all her very useful legal advice.