Compensation from builder - who benefits?

Re-posted - not sure this was in the right forum.  Thanks.

Hi - this is an unusual request in that I'm sure not too many communities get a claim for poor build quality paid but this has happened in a community where I owned a house (sold in 2012).  We were the original owners, had the cost of putting things right and some of the costs of bringing the case to the courts.  I never thought it would be paid so didn't think too much about it when we sold.  Anyway, the payment has been made to the development and is in the owners' bank accounts including the person we sold to.  Do we have a claim on the payout?  Many thanks for your advice.  And take heart all those who are suing - sometimes you win.

Thank you.  Johnny

Was the claim made against the developer made by the community for defects or problems with common property or was the claim made by individual owners for defect or problems in the individual units?

This is important to answer your question.

If the claim is by the community for problems with common property, then the funds are paid to the community.  If the community then choses to return it to the individual owners, the funds go to the owners at the time of such pay out.

If the claim was done by individual owners for problems with their respective units, then the funds should be paid out to the owners that made such a claim and not to any new owners.

If you are unsure of the facts, it is probably because the community was the one that made the claim as otherwise you would have had to appoint lawyers and procurators, pay court fees, etc. in your own name,  and for sure you would remember this.  

In the likely scenario that the claim was made by the community, in the selling documents, you could have stated that any payback would come to you but if you did not state this in the Escritura of Sale, then the moneys rightfully go the current owners, it being presumed that the sellers got their investment back through the sale price even if technically this is not correct.

Hi Lobin

Thank you very much for your clear and concise response.  It was the former - the community went after the developer for defects in the communal parts AND defects to the individual houses.  It was paid out to the community who chose to pay it to themselves. 

We didn't make it a condition of sale (in hindsight we should have) but we didn't think we would ever be paid.  A salutory lesson and any one selling should take note.

Thank you again.

Having purchased an apartment after 6 years of research, in 2007 through the Atlas company who advertised every week on UK TV we found our lovely apartment inland of Guaramar, an old Spanish Village with everthing you need to enjoy life in Spain. We have still not moved to Spain because we feel the Habitation Certificate which we stil wait for  is important. The builder failed to complete several areas and even stole some of the fixed Electric & water equipment to fit in another complex he has built. only a third of the apartments have been sold. the Bank owns 1 third & the builder still owns the other third.

All the Non National owners pay the community fees but for some reason most of the Spanish do not pay, they say it is because theyare unable to ?. The community fees are 80€ a month which did cover the utility costs. Now because the HC is not granted and a few problems that are to lengthy to mention. We can spend a holiday in our own apartment but have to pay €70 to get an electrical supply and pay the bill when we leave. We also have pay SUMO TAX (! of the government taxes).Our Administrators & President have done a lot of work to sue the builder & claim the outstanding fees from the non paying owners. We now pay a live in care-taker to look after the complex & swimming pool.

We have now been told by the Administrator that we are unable to claim any debt through the court from the builder & non payers that is over 3 years old. As the builder has a debt of over 275k in unpaid community fees & unfinished work we will have to carry on paying the €80  community fees for some time to be able to have all the work done. This tell us that the Spanish owners have knowledge of the law that is not told to the purchaser.