Illegal developments - next steps

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13 Jan 2010 12:00 AM by stephieb Star rating. 20 posts Send private message

Does anyone have any experience/advice on the following scenario please?

 

The license for the development of properties was granted about 3 years ago for the building of some apartments and houses in the Axarquia region.  Subsequently the phase 1 of these properties was complete and all First Licenses of Occupation obtained.  Subsequently, the local mayor is trialled an imprisoned, and phase 2, although complete has not been granted the FLO (although someone is actually living in one of these apartments and utlities provided by the developer I assume) 

A mortgage application is submitted to a spanish bank who after completing the survey is asked if the licenses from phase 1 are in fact legal, bearing in mind they were granted by a corrupt mayor (who incidently is now out of jail) - the bank has since rejected the application on the basis that the properties are illegal having spoken to the town hall and its new mayor.....

What position would one be in from a legal perspective in terms of being eligible for a refund of a considerable deposit?

I have asked my lawyer to advise of the next course of action, however they have been advising me all along that they have no doubts as to the legality of the development (as you'd expect).....

Any help much appreciated....do I need to engage with a new lawyer to act on my behalf in this instance or are there things I can do before having to follow this next step.  Or, am I powerless and not owed a cent?

 

Thanks :-)





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14 Jan 2010 7:54 AM by mariadecastro Star rating in Algeciras (Cadiz). 9419 posts Send private message

mariadecastro´s avatar

If completion deadline stablished in the contract has arrived and you the property with its corresponsing First Occupation License has not been handed over to you, you have got full rights for refund of deposit plus legal interests. Do you have a Bank Guarantee?

Best regards,

Maria



_______________________

Maria L. de Castro, JD, MA

Lawyer

Director www.costaluzlawyers.es

El blog de Maria



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