I've just received a letter from the MHV developer saying that if I don't complete in the next 7 days then they will take legal action and sell the apartment to any third party at whatever price and deduct the difference from my deposit payment and also charge community fees, accrued interest, legal costs etc. They will then hand me back what's left.
Of course the private purchase contract says none of this and they are trying to put the frighteners on purchasers who are delaying or refusing to complete. In the meantime the spanish market has slowed down dramatically, developers are left with unsold units and large borrowings on which they must pay interest to the banks who have financed their developments.
I also know that there is a large group of buyers who are currently taking the developer to court for delays, poor workmanship etc. and they represent soemthing like 20% of the development's units.
As far as I am concerned the developer can f*** off and I'll see them in court because my lawyer's advised that what they are trying to do won't stand up and as long as I stand my ground and can bide my time they will not be able to keep my deposit or a large part of it at all.
Grupo have offered sizeable reductions to some purchasers (I've heard 15%-20%+ off the agreed price) that's how dire their cashflow position is.
Is anybody else refusing to complete on the same or similar grounds. If you are, have you also received the same or a similar letter recently?
I know the developer monitors these boards, so here's a seasonal message for Grupo:
Grupo - don't think you can frighten non completers off. We'll happily see you in court and I personally can wait for 5 years+ if I have to. Of course you may have gone bankrupt before then if the market doesn't pick up. So f*** off and have a merry xmas and great new year. Your greedy and unscrupulous practices alongside the agents you fund like Viva Estates are now starting to bite you back. Serves you right.
The people I feel sorry for are those who are in financial hardship and have paid top dollar and completed without much fuss. Ultimately they'll be ok but it'll take a very long time to payback.
Regards,
RSINGH
Regards