At what point can a bank guarantee be executed?

Delayed delivery what to do?

The developer is obliged to deliver his home as scheduled in the contract otherwise you must compensate the damages that the delay will cause.

The delivery date must be provided in the contract in a clear and precise way.This is required under Article 5.5 of Royal Decree 515/1989 of 21 April. Consumer protection with regard to information provided in the Sale and Lease Housing.

If your contract does not establish the date of delivery should formalize a Sheet Of Complaints to the same promoter, as such failure constitutes a breach of the rules protecting consumer and can be brought before the competent organ of the Autonomus Community, after the timely processing which impose a sanction to the promoter.

The housing should not be considered until you delivered. Non-receipt of the copy of the license of first occupation and the livability card, in addition to the newsletters hitch to various supplies. Do not accept delivery "supplies of work" That is flawed delivery, that does not have to accept.

The first day behind schedule, ie, in terms begin the delay, send Burofax Certificate and acknowledgment to the developer requiring inmediate delivery in accordance with the agreement or a justification for the delay. While he answered achieved by this method to record its dissatisfaction with the delay.

To calculate the compensation to which they are entitled the first thing you should do is carefully read your sales contract. If it states that the developer must pay for delays, then that will be the compensation to which he is entitled.

If the contract is not expected anything have the right to be compensated for any damages that may prove.For example:

-Expenses incurred for the rental of cother homes, fully justified by the Lease and bank statements or receipts evidencing payment of the monthly rent.

Speding Removal credited with invoice

Expenditure Guardamuebles, credited with invoice

Interest legal representative of the money part of the price that was paid, it is not fair that the seller is left with them.

Damage moral. Some courts are supporters also include damages compensable moral damage, althougt not a view shared by all.

If you are unable to prove any harm or injury then not entitled to compensation. The mere delay is not compensable.

Throughout the duration of the delay you.Must not fail to meet its payment obligations under the contract, or else lose the right to claim for breach involving the delay.

The mere delay is not sufficent reason to terminate the contract of sale with return of the quantities delivered.

Miguel Gastalver  Advocate specialist Housing.

Am i understanding that there is no compensation due then? i was told a few months ago that it will be around 4% by my lawyer but heard nothing since.  Does anybody have their contract?  My lawyer has mine in spain so god knows what mine says. She has power of attorney so in theory we don't need to see the apartment until its beds are made! I must admit i have paperwork everywhere so just wondered whether i should have it somewhere (you want to see my office, i'm amazed i can find my keyboard)

suzanne

Suzanne, the compensation for missing the due date for delivery is 10%. However, the developer will refuse to pay this as he knows you will then have to go to court and that could take ages before the case is heard.
If you cancel with the developer missing his delivery date you are entitled to legal interest. It will vary from year to year but will average something like 4% per annum.
Like you I still don't know which way to jump. I swing one way then the other. One thing is for sure even though things are on the move somehow the gloss has been rubbed off this project.
Alan

My solicitor advised me that you would only receive compensation if you planned to live in the apartment as a resident and as a result of the delay had to rent whilst waiting. You can only cancel your contract if the licence has NOT been granted, so if you are unsure and are still in an unlicensed property...get out now!  Once the licence is granted you cannot cancel through the bank guarantee.

Maybe it's time to check contracts. My understanding is if delivery exceeds 6 months from the date on your contract you are entitled to compensation.

My lawyer has agreed I can claim the compensation, Paul Cox confirmed this before he left, but that the developer will not pay and we would have to claim through the courts.
Of course the developer knows that the majority of people will not want to wait this long.

I am reaching the stage now where I feel I will do this simply because the developer has not been truthful with me and 4 years legal interest is a poor investment.

If in doubt contact our resident forum lawyer Maria.
Alan

Hi Everyone

We have just received our cheques back after cancelling many months ago.  It has been quite a long process with no real reason why it should take this long.

If you cancel against the bank gaurantee you will get your deposit back plus 4% - for one year only.  It is not 4% per annum.  Therefore the so called legal interest just about covers your legal fees.  So in effect you provide an interst free loan.  You can go to court for compensation but you will have to prove damages.  This is not easy and unless you have had to find alternative accomodation virtually impossible.  Other small losses incurred would not be worth fighting for.

We bought two top floor units on phase one, south west facing over looking the pool in November 2003 at Euro 170,000 plus costs.  So we got in early at the best price.  However, as we were going to rent these out we decided to cancel.  You will see units advertised for Euro 220,000 but if you wanted to sell quickly you would not get this price.  More like Euro 200,000 if you are lucky.  So even for us who bought at a good price we would be lucky to break even.  I actually think that the market is set to fall further.  I do not think valuations mean much.

If you are buying to live in or as a long term holiday home I still think they are good apartments, well built and near to the beach, but a bit small.  However, there are some very good buys around at the moment and I think that this slow market will persist for 3 - 5 years.

We love Spain and have actually purchased another apartment off plan which is now complete.  It is in Alcaisdesa and built by Ros y Falcon.  They have been a delight to deal with, extremely professional.

I am not sure that we would buy off plan again - we would have to know the developer.  The way we have all been treated has been terrible.  If I was keeping the apartments my main concern would be when the rest of phase one will be finished.  Also the other phases will impact on phase one so when and how will these be finished.  We have never understood why the developer chooses not to keep their customers informed.  It has caused them more trouble and makes us suspicious.

Best of luck to all of you who are staying with the development and thank you for all your comments which have proved useful over the last few years.  If you have any questions you think I could help with please send me a private message.

Hi gwilymashworth, My solicitor has already quoted the scale of interest per annum I would receive. It is as follows: 2004=4% - 05=4% - 06=4% - 07=5%
I would seriously challenge what you have been paid. I had a similar situation with the cancellation of an apartment in Elviria and was paid interest per annum.
Regards,
Alan

We have just had our monies go in the bank.  We were sent a draft and it has taken 8 weeks for it to clear through the spanish system.  So when you do cancel get the money wired.  We were not given a choice at the time.  We feel very relieved we cancelled.

We also bought right at the beginning off plan for 170 plus costs.  And we also got a super duper valuation about 12 months ago.  But after talking with other agents in the area we realised this wasnt a true reflection of its actual value.

We were given 6% on the total of our deposit held, not a compounded 6%.  But we were happy to just get our monies back.

Too many problems on this site, as Alan says, is this an indication of the future of the site.

 

Hi,

Well there seems to be a run on cancellations.  We are 99% sure we will cancel this week as we're purchasing in Block 3, which hasn't received a FLO as yet & are still able to do withdraw.  We will be pretty happy to just get out now with our deposit  and buy elsewhere.

We got in fairly late, circa 2004 & paid 217k for a top floor apartment, I agree with the comments about it being a long term investment because if we were to sell in the next 5 years we would be luicky to break even, after paying legal costs etc.  It would probably be more cost effective for us to rent on a week by week basis.  If its to live in, then I think its a fab place.  We, as well as many others, were disappointed by the agent who told us nothing would be built in front of our apartment, which overlooked the Golf course, only to find a few months later constrcution work had started & our view is now obscured...quelle surprise!

Our solicitor has advised that she cancelled 28 contracts last month & 2 this month, so it seems many are getting out, although im not sure of all of these are on Arenal.

Having looked at other properties, the quality of the apartments, coupled with the price & fixtures & fittings are pretty hard to beat.

Re Disney, it is widely believed this is a hoax & probably being circulated by people/agents keen to encourage people to buy.  Just look at the amount of villas for rent near disney in Florida & you will see that whilst it may bring business in, you still need to work very hard to break even each year, if its an investment.  I have a few friends who have Villas there & say it is difficult to rent without putting in daily effort updating personal websites.

For those remaining in, good luck, I hope all goes well & would like to thank you for the updates given here, which have allowed us to understand what is happening

Alan S, Im afraid this means one less Spurs supporter at Duquesa & it looks like you'll be surrounded by Gooners....another good reason to pull out

Take care

Sean

 

 

 

It's not nice seeing everyone dropping like flies.  Unfortunately, we're stuck in whether we like it or not now.  The option has gone to cancel and we have to send over another 20,000 euros because of valuation.  Maybe we can rent to you lot that pulled out? how does that sound? I'm sure you'll take pity and all us people with sore ar*es from being slapped so hard!

I am moving towards canceling now and it's not a decision I will take lightly. There is no doubt the quality and finish of the apartments are of a high quality and even in this depressed market the price paid by us early purchasers is very good. However, I believe it will take a very long time now before we would start seeing an appreciation on the value and what happens if your circumstances change and you need to sell? I think it would be a while before you could shift it.  As I have bought for investment as well as personal use I am feeling more and more that I am left with little option but to pull out.

Could be the gooners will be the only one's left!
Alan

Hi All

For those thinking of cancelling I would think long and hard ,In 2 maybe 3 years or even 5years you may regret your decision.Obviously I do not know individual posistions but I think that if you have bought below 220 you will have quality apartments,and we think that the posistion is fantastic.I would not like to be on the beach, but in a central position to the port ,beach and Sabbi.No taxi to get home after a drink etc. shopping etc.

To all those cancelling good luck in finding some where else.

Ken Lynn

We're staying in. Just on the basis that it's a great location, the build is good and we got it for a good price in 2003. My only worry is it turning into a ghost town what with everyone dropping off. Also, if there aren't many people moving in, what will be the running costs? The gardeners have to be paid, whatever the number of residents. Must admit, I didn't know that the option to cancel was lost once the licence had been granted........ hmmmmm

You'll be OK Margo.

Prienesur have to pay the Community Fees for all apartments not sold/completed, so the actual level of the Fee shouldn't be effected even if only a few have actually moved in.

Thanks Wflem. I've just started to feel a bit jittery about it all now. I wish I had more confidence in the company. Let's hope our solicitor turns out to be a good one. I've met her and I liked her. So fingers crossed.