The following is information that has been posted on another forum, Murcia Golf, regarding Ocahndo Golf being cancelled and an upade form IAP Global
On this forum I have in the past been critised by certain legal parties when I have expressed my concern over the lack of BG´s for buyers but again it shows the importance of this document and that IAP are stating that it is not their fault that buyers have no BG
Dear Purchaser
IAP Global have been informed by our clients that a significant development update has recently been issued by Plus Advisor's for the Ochando site confirming this site is no longer proceeding. Whilst we appreciate the level of background that Plus Advisor's have given throughout this update, we would like to further discuss some of the points raised.
It was suggested that a lack of bank guarantees was a commercial negotiation. During any exchange process, a Bank Guarantee or some such equal insurance should be requested by the purchaser’s legal representatives. This is to ensure that any monies passed to the developer or their solicitors (held by way of Escrow accounts) are protected throughout the purchase period. Instant Access Properties and Instant Access Properties SL (the Spanish office) acted as agents for the sale of this development, introducing you as our clients to the developer and the investment purchase. At no point did IAP / IAP SL take any part of the legal contractual process, nor were they involved with the financing of the construction. For these reasons the funding of any bank guarantees would never be paid by these companies, as the matter of liability was not theirs.
In our opinion gaining something now - e.g. another property - rather than accepting an ‘unknown outcome’ may be the best result. You may believe that you have a legal case against the developer for ‘Specific Performance’; however any litigation is going to be costly and time-consuming. Past experience with the Spanish legal system would indicate that any breach of contract action may take up to 2 years to resolve.
At this time, no information has been provided to IAP Global regarding the alternative development that you may be offered. We have no details regarding the prices, location, rental opportunities or due diligence performed. We will endeavour to work with all parties involved to find the best solution for all purchasers and will contact you again as soon as we have some further news.
In conjunction with some local, well-established Spanish estate agents, we (IAP Global Ltd) have started looking at alternative sites which may be suitable as a replacement investment. The offer from these developers is reasonably straight forward; in return for your contract to purchase key ready (completed) properties, they will offer significant discounts from today’s market valuations of their properties. We are currently performing due diligence on these developments and should they meet requirements we will make further details available.
I am really sorry that buyers now have to now face lengthy legal proceedings and I would always advise that, in order to save money that buyers should join togther in a class action via an independant lawyer