occupation licence

Hi

We are purchasing on phase 4 and at press ther is no licence,our solicitor has always advised us not to complete without this

but today has told us that we should complete without the licence.they saying that peinsa are more than likley to go bankrupt and if we have not completed we would probably loose the property.

We would like to hear if others are in the same situation or any comments

Mark Ange

Hi
We faced this choice in February as our bank guarantee expired in March, and we decided against continuing to wait without one.
We signed up in summer 2005 for our 3 bed on Phase V, and after so long a wait, from the outside it looks about finished, but the road isn't and there's no reliable handover date from Peinsa. The uncertainties about Peinsa's finances, habitacion licences and consequently mains services connection persuaded us to pull the plug. But if Peinsa hang on, and it gets going again, maybe it could all come right? It's a lousy decision to have to take.
We're hoping to find something else.
Grant & Lynne
 

Just to put the other side for the moment. I had a long conversation with my solicitor this morning who tells me that he has firm confirmation from Peinsa that a new builder has been engaged and he has started the process of completing the site. (That does not mean he is actually on site yet) obviously this will still take some time.

However, to say that Peinsa are more than likely to go bankrupt is speculation at this point it could go either way. If you are nervous about it and can proceed against them to get your money back that might be the best way for you, the alternative is to holding on with all the risks attached to that. I have to say though that completing without a license seems to me to be fraught with risks.

Good luck with your decision, not a pleasant one, Im in the same boat myself!

Sean 

Whilst Penisa are clearly struggling on finances they are not at rock bottom - I say this as in the last 3 months they turned down £2m euro's of buyers money when 13 of us were willing to exchange to earlier plots on phases 1-3 on a like for like basis.

They are struggling in that they no longer employ cleaners to clean the houses prior to completion, they are giving money in lieu of white goods and they are paying the necessary taxes at the last minute to enable the end of works to be processed.

The habitation licence is only part of what is needed to complete - we know this from recent experience - the notra Simple has to recognise the house, rather than plot and to do this there is a number of processes to go through which can take up to 2-3 months.

Our advice - do not complete without all the appropriate paperwork.