Burofax - Process

Hi

Can anyone explain to me the legal process for claiming a deposit from a defaulting buyer? Our lawyer has tried the amicable approach and now has issued a Burofax. What we don´t know is how long the lawyer should wait for a response and what the next step would be whether they respond or not.

The agent we used made a complete hash of the contract the buyer signed - the English translation of the Spanish contract was incorrect and the English version said .... subject to finding finance... whereas the Spanish text doesn´t mention this. Therefore, our lawyer thinks we stand a good chance of getting their deposit. However, as our buyers are English they are pleading ignorance.

We´d like to sue the useless agent, but apparently that´s not the way to go.

Irene

Hi Irene.................a Burofax is the same as an English registered/recorded delivery. The letter goes from Spain with a card attached to the back. The idea is the recipient signs this and hands it back to the postman and the post send it back to Spain. This works in Spain!! Unfortunately in my experience it does not work so well in UK. Our Community send Burofax to debtors and we rarely get the signed bit back and owners have actually broght the bit they should have signed over here to show us months later! If the people choose to ignore the Burofax I think, apart from more correspondence, there is little you can do and I don't think there is any particular time limit but perhaps someone will tell us otherwise.

You are right that the Spanish version of your contract is the correct one by Law in Spain but the trouble is your ex-buyer is NOT in Spain and therefore to get money back is very hard. There are UK collectiong agencies but I'm unsure of how your situation would be viewed. x

We´re dealing with their Spanish solicitor at present. Our buyer is a Scottish minister - WHO SAID WE COULD TRUST A MAN OF GOD?

Irene

I really do hope you get some positive response from his/your solicitor...............I was only relating my experience of Burofax!

For info only, when we bought our resell property we insisted in a clause that stated subject to finance availability, we met little or no resistance from the agent and we did get finance but it is very feasible and quite probable that your UK buyer insisted on a similar clause and if he didn't he should have.... Are you sure the problem is not with the Spanish version as a translation does not normally miss elements of text only mistranslates them, probably the UK buyer only read the English version that reflected what he wanted, if that is the case he shouldn't be pursued because of another faulty contract in a foreign language.

My opinion only but if he has signed the English version that is what he believed to be the conditions.... morally he is correct if he refuses to pay after failing to find the neceassary finance, morals do still count for something I trust. I'm not a godly person at all but reference ' to trusting a man of god ' in this circumstance is a little below the belt me thinks.

Barry

Ok, Barry, let me add this into the mix and see if it changes your view... a couple of weeks before the final deadline the buyer decided that we had asked too much for our apartment and wanted to knock 16k off the price. He signed the contract at one price and then decided he didn´t like it. I think that´s why he reneged on the deal.

Anyway, whether or not it is morally right for him to withold the deposit, remember we are in Spain and the Spanish text therefore overrules the English version. Is it fair for us to suffer because of his ignorance? He should take recourse with his lawyer if he feels that it is not fair, but that´s not our problem.

Irene

Hi Irene,

I wasn't trying to take sides in my post, just adding a little to what was the probable background to your buyers desire not to have to pay the deposit. Incidentally we did actually pay the €3,000 deposit prior to or at the same time as we signed the contract but before we obtained the finance approval, why do you not already have it and the buyer be forced to recover it?

I know full well we are in Spain but is it fair for the buyer to suffer because of a faulty Spanish contract, who drew up the contract(s), I assume maybe incorrectly, that you saw both contracts and received a signed copy of both contract, was the no finance clause not spotted then or did you think at that time it was not going to apply?

I do sympathise with you but also the buyer if he genuinely thought he had successfully negotiated a get out clause.

Difficult !!

Barry

Hi Barry

Our agent (who I would never recommend!!!!) did the contract. We never signed it, but the buyer did. I believe the agent or their lawyer kept the deposit (I´m assured this is normal in the buying/selling process) and we never saw the contract until after numerous requests for a copy: we received it a month before the whole thing collapsed and it was at this stage that our (second lawyer - first one replaced) spotted the wording. The process took 6 months to get to that stage, I may add, with numerous requests for time extensions while they attempted to get a mortgage.

Irene