Compensation For Late Completion

We are in the process of discussing compensation with our builder. The property was completed on time but the Licence of First Occupation took a further 15 months. I am seeking advice from people who were in a similar situation to us but received compensation either with or without court action. What level is the norm? They are offering a level of interest based on  our deposit and a time period from completion to issue of licence.

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Are you saying that the developer is agreeing compensation for late completion?  Do you mean you are getting your deposit returned or they are just compensating you for the delay?

To get ANY money out of developers these days is quite a challenge so if they have offered something then you're doing very well!

Justin

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Did you have to rent as an alternative?

Can you prove the financial loses due to the delay?

If you do not settle out of courts, the judgement in Courts will be based on effective financial loses or expenses and you can add to a an amount under the concept opf moral damages.

Press developer with the knowledge of Court Decissions allowing the paying of monthly rental amounts as monthly compensations or if you can prove that the financial value of the object was damaged by the delay, make you numbers and fight on them too.

Best wishes,

Maria

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They are compensating us in the form of an amount of money which will probably be deducted from the final payment. We had set in motion the return of all our deposit but as the Licence was issued we are being told by our solicitor that the builder now has all the power, so we are seeking compensation.

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In motion means verbally? Do you have a written commitment for refund?

Until you are requested to complete you can ask for the refund of your money. Have they requested you to complete?

Maria

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Prior to the licence being issued and after many promises from the builder that it was to be issued we directed a solicitor to get all our deposit back. We had on many occasions asked for our money back but were told that we would loose 25% as stated in the contract, even though this was worded if we backed out prior to completion. Our solicitor  sent a legal letter that, they indicated, the builder had to respond by mid Dec 07. We believe they did not which prompted the procedure to take the builder to court. This is where it gets even more unclear as the next thing we were informed of was that the licence was issued end Jan and our solicitor informed us that the builder would win if we took it any further and that now we only had grounds for compensation. If we took the builder to court we would only win compensation, this our solicitor informed us due to 'recent cases' being brought before the courts. We were asked to complete by end February but as there was still concerns over the legality of the build we and others are still holding back. The legality we are told has been resolved so we have to make a decision but as we are getting mixed messages we are unclear as to the paths that are open to us. With regards to financial loss can we include flights out to resolve the problems and the loss of monies due to the large change in the Euro / £ exchange rate? Any help on these matters would be greatly appreciated.


This message was last edited by 1600E on 3/30/2008.

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Hi, our place was also late by one year, the buider offered us 3% interest on all the money we had paid so far from original complettion date to the new one. This money was deducted from the final payment.  All in all, it meant we got the place for about £2000 less than the original contracted amount.

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In April 2003 we put a deposit on an off plan apartment and the completion date stated in the contract was December 2005.  It is now March 2007 and finally the construction is just about finished but we are still waiting for the Licence of First Occupation to be granted.  The developer applied for it in November 2007.  Some time ago we asked our solicitor about compensation for late delivery and were told compensation is not paid in Spain, so it is interesting to see that some people are getting compensation.  Due to the falling exchange rate we are going to be considerably worse off than if we had completed 2 years ago.  Can anyone advise how we should go about claiming compensation as our solicitors are not very helpful.

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Dear Condesa

Of course you may get a compenstaion for such a delay! First of all, if you want, you can even reverse the contract for a breach of it by the developer, plus interest and compensation if you have had costs or damages caused by this delay (having to rent an apartment, property value decrease, etc). You can even ask for moral damages in some ocassions (stress caused by the delay, etc).

Remember there are Lawyers that advide and Lawyers that advice and litigate.

** EDITED - Please respect terms of posting **

Kind regards & good luck,

 

 

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Hi Condesa

Thr developer will say that delays in construction are not his fault and delays in issueing the licence is also not his fault.

If the courts agree with you then compensation may  go your way,

However where the courts agree that its not the developers fault ( which is becoming the case in many an instance) then interest is being backdated to when the courts say you should have completed..

Mad ? Of course it is but watch this chasing compensation doesnt bite yer arse as they are even claiming backdated service fees.

 

Dan.

 

This message was last edited by Just Dan on 4/5/2008.

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Legal advice please , yes we have a lawyer but it hasn't turned out to be quite as 'independant'  as the sales person led us to believe. A follow up trip to Murcia found them to be in THE SAME BUILDING AS THE SALES AGENTS!!  Not where we signed on the dotted line though that was at another venue!!! Stupid, stupid, stupid......I guess those buying at Roda/Corvera in Murcia know who I mean!

Anyway our own stupid fault.

Purchasing an off plan apartment on corvera, building work commenced around Sept 2008 (there are arial photos to prove it), however final building licnce has only just been issued (10/4/08).

Is anybody able to advise if legally the builder should complete 18 months from the start of building/laying foundations; or 18 months from when the building licence was  issued (in spite of the fact that commencement of building was 8 months earlier).

As we want out of the contract we would like to use the 18 month clause and it would be nice if it was from start of building NOT issue of licence ( there is photographic evidence of progressive building without the final licence). Our property is unlikely to be completed by 18 months from when actual bulding began but will almost certainly be completed within 18 months from 10/4/08.

Thankyou Carole.

PS this topic has been thrown around our off plan forum but I don't think we have any legal buddies on board who are able to give  us a conclusive answer, and many of us have got 'independant' lawyers who sem to be as much use as a chocolate fireguard

 

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Our interpretation ( as building license has been unduly delayed) is that the commencing is from foundations. There are enough legal grounds for that approach. Deadlines in contrat when undetermined cannot be against Consumers interests. So I am sure a good defense rooted in good Contract and Consumers Law specialist will kick in for sure.

Best wishes,

Maria

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Thanks for that

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Yes, we do agree with Maria de Castro.

18 month period will start from when the construction started, and there are ways to proove it (contracts with diggers, certificates of concrete pours, contract with technical audit company, etc.

Good luck!

Regards

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