Tres Molinos, Murcia

Does anyone have any thoughts about the delay in completion of this resort?

Hi,

Yes I have a thought, credit cruch could be one of them. Many builders just can't get the credit they did have from the Banks, so they just can not finish properties until those that are finished are sold and with thousands of properties finished or almost finished, then until they are completed, they just cant move forward.

If you have a property that was bought off plan and is delayed, then why not check with the builder to see if they have one that is finished and willing to change to you so that you can get in. It may be worth a haggle, many builders are just desperate and I mean DESPERATE to get rid of property so you never know, just ask, if they say, then it will cost them money in the long run as your contract should have a completion clause which if the property is not completed within the contracted time, they they are liable to liquidated damages, check your contract or with you solicitor.

Dave

Check your contract to see if the completion date has expired , then you also have the option of exercising the bank guarantee which would enable you to get your deposit back with interest which I think is currently 6%.....not bad just now

And then look at the bargains currently available

However, if the resort is the one for you , then look at other ready now  and the developer may well up grade you

I know of another development where part has been mothballed and the buyers on the 'mothballed sectors' have been given attractive upgrade options of the nearly finished sectors

And this recession will end one day!!!......how soon no one knows  

Had a chat with a Polaris World rep last October about Murcia property in general, and his thoughts (taking into account potential bias!), were that 3 Molinos was a very ambitious devlopemnt from the off. In fairness, he also said that if it comes to fruition it would be a very good resort.

So far as why is taking so long, I would suggest that sales have ground to a halt, and on a business level, the builder will be wieghing up best options on the immediate way forward. Should they go to existing buyers with a new offer of upgrades in lieu of the delay? Should they brass it out and hope most buyers will complete anyway?

I'm sure there are several other business reasons for delay but only time will tell. I do know the developer was a bit slow in getting the build started due to insistance on waiting for liscence, which is to their credit. 

Great to read your comments.

The difficulties are not with the apartment itself, which I believe should now complete around September time, but with the facilities on the resort which I now understand will be minimal at the time the property is ready.  I have also heard that licences have yet to be obtained for some of the buildings which could take up to 2 years to complete.  It was my understanding that the facilities being up and running was part of the contract.  I did wonder if this might affect the contract but also wondered if anyone was experiencing the same.

Further comments always welcome!

Hi TwinkleW,

The next question has got to be, which contract, yours or the builders.

You will near enough find a contract will have some get out clause, "beyond the builders control" they will say that the licences have been delayed due to additional info required by someone or some other reason.

Contracts are normally just a brief for something like the construction of a development as many things can go wrong and cause delays, so there will no doubt be some get out clause. The main concern you should have is that your apartment is complete on time or within a short period of time over the contracted completion date. Many contracts do provide for the builder to slightly over run the completion date for things out of his control.

Even if it runs over, it will be difficult to get anything back from the builder as he will just say take me to court and the Spanish legal system is a long drawn out thing.

Good luck with it.

Dave

I am seeing a solicitor next week to go through the cotract so will hopefully have a clearer picture of my options then.  I live in hope!

This is one of the very few developments that they are still building. I have lost count how many sites have removed cranes etc, and just mothballed. I past this one 2 days ago and work seems to be full steam ahead. I believe that the family that are behind this resort are very well known with several large businesses.

I agree with the last comments as I visit the site on a regular basis to carry out progress reports for clients and there are plenty of workmen onsite, lots of activity, and the general build quality, looks OK

I also believe that, acording to the sales office, that they intend to complete as per the contract terms

The situation with the facilities is a more difficult one as the developer does not include these in the sales contract and so many local developments are suffering the same problems

There have been some test cases where when the developer have failed to delive,r what was in the artist impressions, there has been a case but where this is a new development, and where there is nothing in the contracts that commits the developer to an ACTUAL DATE for the completion of the facilities the buyers have lost their cases.

The other problem is that, even when the facilities are finished there are very few businesses willing to move in a fit out the shops and bars so you normally start with a supermaket and bar

You are lucky that are some established resorts, like La Torre and the commercial centre, very close, that can be used

Had a very interesting chat with my solicitor yesterday.  I'm told there may be potential grounds for cancelling the contract.  Have, however, been advised not to disclose too much for obvious reasons. 

Its a difficult decision to make, having had such exciting plans and expectations which could all now come crumbling down.  On the other hand, the great expense for what could potentially be a building site for some time.  That was never the plan!

If anyone finds themselves perhaps considering the same, I'd be happy to reply to private messages.  I've found it a lot easier dealing with a solicitor in England, being given straight answers, it really has been a comfort.

Hi i regulary go past this site and can report that work on the apartments is full stream ahead, they might be a bit behind but hey at least they are doing it properly, in which they are legal, unlike others, i wouldnt worry about your deposits as this site looks to be fantastic and to own a property there would be very exclusive.

Hope this put your mind at rest a little.

In the current economic climate if you have an off plan contract with a bank guarantee then you should take ' serious legal advice' on allowing the developer to go past the ' date in your contract' without calling in the BG

Most developments are being mothballed to some degree

Perhaps finishing the phases where building is in progress and also perhaps only building the services to enable the developer to get the Licence of First Occupation

This means  that the Resort or Development may not in the short term end up as you imagined when you bought..now that may be OK and when this economic mess is all over everything will be as planned

The developer may just be caught by the credit crunch ....not his fault but he has to react to circumstances to stay in business!

The prices of comparable properties have dropped........lots of good buys out there!

So you should take into consideration the fact that when you get your deposit back you can use it to buy something similar at a lower price

EG- lots of Polaris World re sales now available- 2 bed with solarium at Condado, price paid 119.800 € now we have one for 87.500 €..and a lot more examples

And any property you see on web sites, if not already stating a dscount, you can make an offer!!

But if you want to stick with it......then just check out everything..... ..you can always cash in the BG then wait and see what happens !!....and in the meantime refresh your alternatives

I agree work on the apartments is full steam ahead and that they seems to be working hard doing things properly.  I'm sure the apartments themselves will be amasing when they are finished.

Unfortunately, we'll all be in our lovely, finished apartments overlooking an incomplete resort which is likely to be a building site when our properties complete for what could potentially be a very long time.  Plus for those of us who were planning to rent our apartments out to help pay for them will now not be able to do that until the resort is complete.

I do understand the comment made, "when this economic mess is over everything will be as planned" and this may well be the case, but that could be a couple of years.  Many will have difficulty paying for their apartments during that time.

 Banco Santander signed with 3 Molinos a Generic Guarantee in which the Bank commited to provide individual guarantees to the purchasers, and even a few purchasers got an individual guarantee, but those purchasers whose property wasn't completed in time and don't hold an individual guarantee are entitled now to claim for the refund of the deposit plus legal interest to the Bank.

** EDITED - Spam **

This is really good news ............well done to all involved.

How long did the process take from the start?

Royal Suites  and Madrid court

Was First instance court appealed and how long did it take for this appeal to be heard.

Is this the end or can there be another appeal to Supreme court.

Congrats Guadalupe!

Case won at Appeal Level against Caixabank in Resort Tres Molinos!

Those refunds... to be invested in the good Spain property market of our days

A new law on off plan amounts coming!