NOT completing - how long to wait for court case

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05 Oct 2008 12:00 AM by avicola Star rating. 23 posts Send private message

Can anyone please give me any idea how long it takes for a court case to come up? 

 
Whilst our solicitor says he is confident of us being able to cancel the contract (reasons listed below), he now tells us it could 7 years for the case to come up.  Can this really be right? Maybe.  It appears that a demanda which he put into action on 3rd July has still not been received by the developers.  It seems the court has to issue it rather than the solicitor and whilst it has moved along the system, it has still not been issued.
 

It has now been suggested that we should consider a ‘deal’ with the developers.  It is hoped that various solutions may be put on the table in order that we and the developers can agree on one which is not too punitive to either party. 
 

We agree that is the best solution, but we may soon be a position where we have to choose (if the developers even agree to discuss a deal which is not a foregone conclusion). 

 
We cannot wait 7 years for a case to be brought but an alternative which may be suggested will result in us loosing half of our deposit money (which we do not relish). 
 

The points in ‘our favour’ to cancel the contract are:
 

  1. The contract states that the 2-year licence to build was issued August 2004. It was only completed August 2008.  (We were never informed of any delays, therefore they have not been justified to us no agreed to)
  2. There are no penalties in the contract for late completion.
  3. There is no bank guarantee.
  4. There is no statement referring to how much the developers have borrowed and how it will be paid back.
  5. The fact that we did not understand the contract as it was in Spanish (we now know how important it is to get is checked by a solicitor and not rely on the EA.
  6. It was signed at home (sent to us by a 3rd party ie the estate agents)




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05 Oct 2008 5:17 PM by avicola Star rating. 23 posts Send private message

I should also just like to add that the deposit money was paid straight into the developer's account as per instructions and not into a holding account.  Whilst we now know this is completely inadvisable (stupid), it is what we were instructed to do and didn't know any better.

What that may mean in real terms is that it will probably be even harder to get money back.

The 2 year overdue completion of this development has simply meant that we are not now in a position to take possession.

I read on the forum that only 20% of the deposit can be kept.

But again, if it takes 7 years through the developers appealing etc. ........

Can anything be done to push it through more quickly I wonder?



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06 Oct 2008 7:48 AM by mariadecastro Star rating in Algeciras (Cadiz). 9419 posts Send private message

mariadecastro´s avatar
Dear Avicola:

Answers below in bold green ( same text of your email):



I should also just like to add that the deposit money was paid straight into the developer's account as per instructions and not into a holding account.  Whilst we now know this is completely inadvisable (stupid), it is what we were instructed to do and didn't know any better.

What that may mean in real terms is that it will probably be even harder to get money back. It will be harder but not impossible and of course no 7 years needed.

The 2 year overdue completion of this development has simply meant that we are not now in a position to take possession. Completion deadline of the contract is...? Please let me know.

I read on the forum that only 20% of the deposit can be kept.  Yes, according to Consumers and Contract Case Law

But again, if it takes 7 years through the developers appealing etc. ........ Even if they appealed... 7 years is an overlenghty deadline.

Can anything be done to push it through more quickly I wonder?
------------------------------------------------------------------------------------------


Can anyone please give me any idea how long it takes for a court case to come up? 

 
Whilst our solicitor says he is confident of us being able to cancel the contract (reasons listed below), he now tells us it could 7 years for the case to come up.  Can this really be right? Maybe.  It appears that a demanda which he put into action on 3rd July has still not been received by the developers. Well, that is not that rare, given the August break.  It seems the court has to issue it rather than the solicitor and whilst it has moved along the system, it has still not been issued.
 
It has now been suggested that we should consider a ‘deal’ with the developers.  It is hoped that various solutions may be put on the table in order that we and the developers can agree on one which is not too punitive to either party.  Oh yes! An agreement is always preferable. 
 

We agree that is the best solution, but we may soon be a position where we have to choose (if the developers even agree to discuss a deal which is not a foregone conclusion). 

 
We cannot wait 7 years for a case to be brought but an alternative which may be suggested will result in us loosing half of our deposit money (which we do not relish).  That is too much to be lost, specially if developers are in breach of contract.
 

The points in ‘our favour’ to cancel the contract are:
 

  1. The contract states that the 2-year licence to build was issued August 2004. It was only completed August 2008.  (We were never informed of any delays, therefore they have not been justified to us no agreed to)  License to build do not apply for your cancellation rights but deadline stated in the contract. What is that deadline for handing over the property?
  2. There are no penalties in the contract for late completion. It is illegal but not a cause or cancellation. 
  3. There is no bank guarantee.  It is illegal but not always a cause or cancellation. 
  4. There is no statement referring to how much the developers have borrowed and how it will be paid back.  Irrelevant for cancellation.
  5. The fact that we did not understand the contract as it was in Spanish (we now know how important it is to get is checked by a solicitor and not rely on the EA.  So you did not have a Lawyer initially?
  6. It was signed at home (sent to us by a 3rd party ie the estate agents) . Would have to see the contract o ascertain to what point it can be cancelled or even challenged as null and void.


_______________________

Maria L. de Castro, JD, MA

Lawyer

Director www.costaluzlawyers.es

El blog de Maria



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06 Oct 2008 12:17 PM by avicola Star rating. 23 posts Send private message

Dear Maria,
Thank you so much for your great help.  I can tell you that it is much appreciated.

It seems however that there is no deadline in the contract.  I can only imagine that makes it worse for us.   But here is what it says:

Que con fecha 11 agosto 2004 el Ayto. de .... en sesion extraordinarie .....ha concedidio Licencia Administrativa de Obra para Projecto Basico del Conjunto Residencial El ....

La finca seran entregada a la Parte Compradora antes del trascurso de 24 meses a contar desde la concesion por el Ayto. de ........de la Licencia de Ejecucion de Obra.  Plazo en el que se tiene previsto que las obras de la edificacon queden finalizadas, bastando para acrediar dicho extremo el Certificado Final de Obra que el efecto expida el Arquitecto Director facultativo de las obras. 

La indicada fecha podra demorarse, sin que ello faculte a la Parte compradora para reclamar responsabilidad o endemnizacion alguna, ni la resolucion del contrato de compraventa en los siguentes casos:
a) por razones tecnicas ...
b) Por razones de naturaleza administrative ...
c) Por causas juridicas ...


If the case could be heard within the next 18 months, then I think we would take the gamble of  loosing (just)  20% of the deposit rather elect to loose 50% of the money now.

I am worried that the solicitor is trying to encourage us into a deal that may not be the best outcome for us.  He says that if we wait for the court case, then maybe the developers will have no money, which I can see may be true. 

We were really stupid not to get the contract checked by a solicitor.  We had every confidence in the Estate Agent who sent us the contracts, and trusted the sales manager who told us it was just a standard contract.

I wonder how a judge would view several 'illegal' omissions from a contract, even if they are not a cause for cancellation.

I am also not sure what would happen if the judge decrees that the developers are  not in breach of the contract.  Are we still entitled to 80% of our deposit back? And are there stipulations as to when that must be paid, or do we have to wait for the courts?

Sorry for so many questions.

Many thanks again for your help.





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