Another question for Maria

Hi Maria,

Just wondering if you can give us any advice on the following:

We are in Phase 3 of an unfinished development - Phase 4 is being built but Phase 5, along with our promised commercial centre and 5* Hotel are "on hold" indefinitely.  Each completed phase has it's own Community set up to manage maintenance and finances of the particular phase. At the initial meeting to set up our phase community, we were informed by our Administrator (appointed by the builder) , that an "Entidad" for the entire development would be set up when all of the development was complete.

However, we have now been told by our Administrator that the "Urban Conservation Entity" will be set up next week. A meeting has been called for Mon 21st December to form the entidad and approve a budget.  

We have 2 concerns :

1 - That we are being forced into forming the entidad BEFORE completion of the development. It seems to us that the builder is just off-loading the maintenence costs of the unfinished areas onto the residents. It is bad enought that we all paid premium prices for a 5* resort with a hotel, commercial centre etc. that has not been delivered - but now we have to pay extra maintenance costs for the unfinished areas?Can the builder force us to form the entity before completion of the development?

2 - The meeting to form the entity, and approve the budget, has been called for Christmas week!!!!! A cynical mind might think that a deliberate ploy on behalf of the builder to minimise the amount of residents attending! Many overseas owners, including myself, would find it impossible to attend a meeting that week...it's extremely inconvenient, not to mention very costly.  Our administrator has given us 2 weeks notice, as required, but the timing of the meeting is ridiculous! We have asked the administrator to defer the meeting til mid / end January to allow owners to attend the meeting, but they say they cannot defer because the builder will stop paying his share of services etc. on 31st Dec, and therefore services will be affected. Is there any way we can force them to defer the meeting?

Any advice you can give us would be much appreciated.

Regards, Viv

The only solution that comes to my mind is to vote negatively on the formation of the Entidad

Thanks for that Maria.

If we manage to prevent  the formation of the entity, is the builder obliged to continue to maintain the unfinished areas? or can they just refuse to maintain it? 

Thanks again for your help.

Viv

I need to look into the specific details of your case and concult with the planning specialist.

Best,

Maria

Thanks spanish solicitor for the clarification, so it seems that the forming of the Entidad is compulsory?

I'm afraid it is. Usually, this is envisaged in the Master Deed of the Community. The problem is that nobody checks this document before buy a property in a community, then the surprise comes later. But, not always is bad to live in a community within a urban entity. What it is important now is to get ASAP a translation of the Articles (estatutos) of this entity and check if they are registered in the special registry of this entities

Thanks a lot for your great contribution.

Best,

Maria

Thanks Maria and Spanish Solicitor for your help. I will check into it.

Regards, Viv