Moving bits and bobs to Spain

"Due to the fact that this development will be finished soon ,  and in order to prepare completion  we will need from you ………  a detailed list where you describe the damages suffered .-   In this sense , please bear in mind that accordingly to Spanish Law and Spanish Jurisprudence (case law),  you are entitled to receive damages ( compensation)  of which you have sufficient evidence

Has anyone done anything thinking around the basis for the compensation claim or had any advice? I have not gone back to our lawyers for guidance yet.

Tom

Tom,

It would be interesting to know how many other purchasers have been contacted by their lawyers regarding compensation.

My lawyer Manzanares, who I suspect is also many other purchaser's  lawyer if they  bought through Interealty, have definitely NOT contacted me.

 It would be useful to have your lawyer's  details in order to quote them when addressing the subject of a possible compensation claim with our lawyers ( that's if if they do not contact us regarding our wish to initiate a claim).

I do not know what type of loss or disruption would be accepted as reason for compensation by Spanish courts, though articles I have come across on the internet have indicated that financial loss alone might not be a consideration.

If however you had sold your main place of residence and had to rent a property, then you would have the basis for a claim. Possibly , buy to rent purchasers might also have a chance by claiming loss of revenue. Although with the poor state of the rental market over the past few years they might struggle to prove that they are any worse off financially.

As you say Tom, it would be interesting to find out if others had managed to claim compensation for late completion and on what criteria they based their case. For instance would the stress of the builder going bankrupt added to the stress of having a lawyer who approached the supply of information to his clients as akin to breaking the Spanish  version of the 'Official Secrets Act, be just cause for a claim? In some instances it might be that the lawyer is the only winner when he takes on a case for compensation.

Regards

P.S. Did your contract state a specific completion date?

If so did it stae the amount, either as a percentage or in cash, per day that would be paid in the event of late completion? If these things are written in the contract then you are more likely to actually get  compensation if you go to court.

Tom - could you please clarify for me.  Did you instigate a claim against the developers for compensation or have your lawyers approached you 'out of the blue' so to speak about it?  I just wasn't sure from your message!

Does anybody still have the email which Stephanie sent before Christmas last year which included expected rental income?

I would very much appreciate this if anybody still has it.

Hi Everyone,

I posted a message on the 'Spanish Lawyers' section of the 'General Discussion'  board of this site regarding the claiming of compensation for late completion.

Maria de Castro has kindly answered most if not all of my questions but if anyone has further queries, particular to their own situation,  perhaps they could get some answers there.

Why not try a question of your own?

Regards,

 gosh, I think I opened a can of worms and went away so will try to catch up. Remember I am not a lawyer, I am being guided by our lawyers (in whom I have enormous trust - Gomez, Villaries and Alverez  95 286 88 24) and applying my own perspective/sense checks.

The view of our lawyers is that failure by the developer to complete within the 3 months grace period allowed in such agreements is itself grounds for a claim for compensation. The contract confirms the apartments will be completed no later than end December 2005 (check your contracts under section 4a "Entrega Del Inmueble" in case you have another date) so we are entitled to claim compensation from the end of the third month after that, i.e. from end March 2006.

One word of caution - if I was the developer I would read this site daily, this may become a game of poker and so best not reveal your hand too early.

In this case we are covered by Spanish Law but also by Jurisprudence, so whilst this means we are entitled to receive damages ( compensation) , we must also have sufficient evidence to support that claim - and that will in part be down to individual circumstances. Who knows who bought with the intention to rent, or to live in permanently or as a pure private holiday place - each person must make their own case I think. 

The developer must be aware therefore that simple loss of rental income has some validity as a claim, but the amounts will be subject to some negotiation. Dont believe the odd tabloid press coverage that the rental market is dead in this area, it is booming in the golfing market and thats what we have,  top of the market, premium golf rental apartments in Andalucia!!! And they are almost 2 years late!!!!

I am sure there is some Jurisprudence that the developer will try to fall back on as a base line, and then try to go below it. Hence my thought that this will be game of poker but I think reason will prevail and excessive claims for compensation wont succeed whilst a refusal to offer any compensation is unlikely to be a sustainable position for the developer to take.

Negotiations should take place outside the courts, there is no requirement to go to court to gain compensation. Its only if we are unable to reach an agreement that court action is necessary - but that remains of course a real option for those with  reasonable claims which the developer refuses to come to a deal on. 

Hope this helps but remember, these are just my considered thoughts based on advice I have been given by lawyers I trust. Ultimately I think this is a case where we need to look after ourselves and be reasonable.

Tom