Bankers Guarantee with Polaris World.

Hi all,

Just received a call today from Fernando at Customer Services at Polaris head office. We finally receive the information which was not forthcoming since day one on our bankers guarantee.  'Sorry Mr McLaughlin but there is nothing more I can do for you'. You have to contact guarantee department or get a solicitor or accept the change of Plot we have offered you with a 25% discount. 'This is a great offer which I think you are making a mistake.' This all sounds familiar with the other threads put on numerous forums. Where do we go from here? When asked when was our appartment going to be built the answer is that  it will definitely be built, but dont know when and wont know as it will be the last to be built. You would be better swapping. No chance. Sold the dream and 2 years down the road nothing to show and not even a scope of hope that it will. How long can these people hold your money without delivering? Dont the Spanish courts have a heart? When is it deemed unacceptable? Where do we go from here? Is anyone else in the same position? All help would be appreciated. This Plot is at La Terrazas De La Torre and on Phase 2.

Hi

Sorry to hear your story.......but it is an all too familiar one.  Just out of interest which Bank did you pay your deposit to?

They take your deposit for a plot and fail to issue the legally required Bank Guarantee.  Then try to force you to change to a lesser plot on an earlier phase with a promise of a discount because your original plot may never be built in your lifetime!!  Sounds a bit like Las Higuericas Finca Parcs..........any many other developments.....

Any developer or bank not protecting deposits for off plan purchases in a Cuenta Especial and failing to issue the corresponding Bank Guarantees are breaking Spanish Law, in particular LEY 57/68, and should be punished accordingly.

Here are the relevant clauses of LEY 57 / 1968

Primera - Garantizar la devolucion de las cantidades entregadas mas el seis por ciento de interes anual, mediante contrato de seguro otorgado con Entidad aseguradora inscrita y autorizada en el Registro de la Subdireccion General de Seguros o por aval solidario prestado por Entidad inscrita en el Registro de Bancos y Banqueros, o Caja de Ahorros, para el caso de que la construccion no se inicie o no llegue a buen fin por cualquier causa en el plazo convenido.

Segunda - Percibir las cantidades anticipadas por los adquirentes a traves de una Entidad bancaria o Caja de Ahorros, en las que habran de depositarse en cuenta especial, con separacion de cualquier otra clase de fondos pertenecientes al promotor y de las que unicamente podra disponer para las atenciones derivadas de la construccion de las viviendas. Para la apertura de estas cuentas o depositos la Entidad bancaria o Caja de Ahorros, bajo su responsabilidad, exigira la garantia a que se refiere la condicion anterior.

First - To ensure the return of the payments made plus six percent annual interest, by means of Contract of Insurance granted with an Insurance Entity inscribed and authorized in the Record of the General Sub-department of Insurers or by means of a Bank Guarantee issued by an Entity inscribed in the Record of Banks and Bankers or Savings Banks, if the construction does not commence or complete for any reason by the agreed deadline.

Second - Depositing the sums advanced by purchasers through a Bank or Savings Bank, which must be deposited in Special Account, with separation from any other funds belonging to the promoter, which may only contain funds deposited for the construction of dwellings. For the opening of these accounts or deposits the Banking institution or Savings bank, under its responsibility, will demand the guarantee to which the previous condition refers.

Kind regards

Keith
 

Keith thanks for all your advice which is very much appreciated and noted. We are waiting on Maria coming back to us to take on Polaris World. David and Goliath Part 2 but here is hoping that David ( Maria) is successful. Has anyone else taken on Polaris and has anyone had any success whatsoever?

Weall together can get it! Sure! You come with us!

The only problem I can see is on your contract that you signed, having bought and completed with PW, and being quite happy, I'm sure it says thatthe only time limit they put on it is when they actually start building your property, and they have to complete in 2 years I think, so its seems that they will have a get out clause if they haven't started yet. It would be interesting to see what a solicitor can actually do.

Hi

A few have got deposits back from Polaris. We cancelled our Riqueleme apartment when it was late and got deposits back about a year ago. We used a solicitor in Cartagena and from feedback on this forum I know he is helping others in the same position.

Your contract appears to be different to ours (it stated we only had 15 days from the completion date shown on the contract to cancel) We were outside that period but succeeded in our claim.

Do not give up. Just because they are a big company, which they know frightens many people, does not mean they can do as they like.

Best of luck

Jean

Great point Ayrez! And congratulations to your lawyer.

Best regards,

Maria

Surprise, surprise.

I have emailed Polaris World constantly for a week now asking for bankers guarantees and also a phone call to discuss all the issues and our plot. I have requested a meeting for when out in January and absolutely no correspondence whatsoever. When they wanted my money or wanted me to swap plots my phone never stopped ringing. Now all is quiet. Any idea's of how to get pass the Customer Services and get to the top. All help would be welcome.

I would suggest you search the community forum for El Mirador on the Condado de Alhama threads. Last year these apartments and also the Golf Suites were given the same information- you may find you can pm someone who still uses the forum and they can give you some insight. I do remember reading similar comments to yours at the time. I think the standard process is to offer properties elsewhere on their resorts- they are not necessarily inferior to the plot chosen, but of course having spent time deciding on a particular plot thats the one you want. I do know , from personal experience, on Condado de Alhama people have successfully transfered to other properties. My understanding is that deposits are well spent by the time this sort of situation arises and are not sitting in a bank account waiting to be redistributed, so its not a simple or inexpensive process to get developers to come up with that cash again.

 Mikey 2009... I am afraid you are going to need some legal advice and assistance in your case

Maria,

Please see below and best advise.  I have been constantly emailing Polaris and telephoning Customer Sevices and now I have been passed this newsletter which has left me shattered and no where to turn to. If Polaris go bust do I lose everything or can I then chase the creditors Banco de Valencia who should have issued me my BG through Polaris. Is there anyone out there who can give me some advice. Thanks

Polaris World calls to renegotiate the debt of several subsidiaries to avoid the meeting of creditors

Polaris World looking for oxygen to avoid the insolvency proceedings
Polaris World in Murcia has asked the court to allow several of its companies to benefit from three months Insolvency proceedings / Creditors genetal meeting protection in accordance with the Insolvency Act to allow them to renegotiate their debts, according to company sources of the residential tourism group.

The company filed for approval on 22 December and the request was presented to the Commercial Court in Murcia according to judicial sources. Polaris World is now under a provision of the Insolvency proceedings law that allows commercial companies the opportunity to amicably resolve their debt situations without resorting to judicial process. The Act states that if the negotiations do no complete within 3 months, the group must request to be declared Insolvent within the next month. In this case, the judge would have to appoint a Court administration to creditors, within 15 days, and report the debts that the company has with them.

Last June, Polaris World was negotiating its debt with its major creditors, Bancaja, CAM, Banco Popular, Banco de Valencia and Cajamurcia. It is thought that this amounts to a total 900 million euros, which was used to finance the construction of several of its resorts in the Murcia region.

You may find your answer here. Ask for specialised legal advise as it is not an easy action. But yesm you have rights... you do have rights.

http://www.eyeonspain.com/blogs/costaluz/2558/legal-tip-187-banks-breached-law-5768.aspx 

Maria,

I am in Murcia on 11th January to 13th January staying at La Torre in Torre Pacheo. I need to start proceedings to get this BG issued. I am going to their head office but they will only let me speak to Customer Services as their legal team will only speak to lawyers like yourself. What is the cost for you to start proceedings against polaris for the BG as this is very crucial given that they could go bankrupt at anytime and administrators appointed. Where are you based and can we arrange a meeting for Monday 11th January. Thanks

 Mikey:

I have just sent a PM to you.

Best,

Maria

I have read with interest your predicament and some elements are sounding familiar.  We are just at the point of completing on our property at Mar Menor 2 - a long and painful journey considering we signed initially in September 2005!!!  Our original choice of development had planning permission withdrawn and we were offered a number of options (one of which I believe was to pull out).  However we chose to purchase same size and style of property on MM2.  From day one little information on timescales was forthcoming and nothing was ever put in writing - my emails were always responded to by a phone call.  Even now with the property completed we are facing problems with our mortgage provider and their request for an extortionate amount of money to cover costs we have already paid to Polaris, but must battle on.  Now the tables are turned and Polaris are chasing us to hurry (as if they ever did) - they will have to do what we did and wait!!

Polaris World have applied for liquidation - for people like me waiting a court date to collect my 60k after a cancellation this spells big trouble... any advice??  Karen

Polaris World have applied for liquidation - for people like me waiting a court date to collect my 60k after a cancellation this spells big trouble... any advice??  Karen

Karen,

Today after many weeks I have received a email back from polaris with their opening times after requesting a meeting at their head office with their legal team. I have paid 42000 euro's on phase 2 on La Terrasaz de la Torre and my appt has not even started or a brick laid. I met them in July and was told that customer services would apply to their legal team to get my bamkers guarantee. This has still not happened and that is why when I am out on January 11th I will go their office again.I  have asked that one of their legal team is there as time is of the essence. I contacted Banco De Vlaencia for my BG but they refer me back to Polaris. I would have thought that my money would still be sitting with the bank as work has not commenced at all. I am seeking legal advice now to at least get my BG. Do you have one and have you executed it???  We all need to come together so we can at least get our monies back.

Michael

Karen: First, you need to check if  any of the companies applying for insolvency status is the one you have a contract with: as you know Polaris has many companies forming part of its group.

If that was the case, your litigation will be respected and will be heard all the way till final decission. You, of course need to register your credit and ask for a good classification of it.

You very probably also have a case against the Bank who did not secure on the existence of the required Guarantees.

Mikey: There is a general Guarantee issued for that development by Banco de Valencia, of coutse you do have rights to request the Bank to issue one and execute it.

Maria,

This is great news. Can you send me the breakdown as we discussed yesterday to get this moving thanks.