07 Aug 2009 12:00 AM:

Whilst on holiday in Spain recently it was obvious that our apartment is not going to be ready at the end of September 2009 as per our contract.    The apartments are almost built but nothing else has been done.   All surrounding areas where the swimming pool and roads etc should be are still a building site and the golf course which should be ready for the first clients moving in hasn't even been started.     

As a result we instructed our solicitors to notify the developers that we would not be continuing with the purchase as this does not resemble what we were sold. ( i.e. the pictures and information in the promotional material we have).     Our solicitors have advised  that our bank guarantee states the property should have been handed over to us by April 2009.  The solicitors have presented this to the bank and are awaiting their reply but they have warned us that the bank will try everything in their power not to pay and as a result we will need to raise a court action.    After reading other threads on this I guess are chances in being successful would be small.

The solicitors also advised that the developers will not accept cancelling the contract as the suspensive condition was carried out in time.  It could be cancelled justifying delay in delivering the property, but the delay should be long enough (at least a year) as nowadays Judges do not accept to cancel contracts in which there is a short delay"     Is this true?

So basically we have a bank guarantee that we probably cannot enforce and a contract that states completion due by September 2009 which we can't take action on until September 2010.   Am I missing something here?    I was under the impression the contract was there to protect both the buyer and the developer but it would appear it only protects the developer as it can be changed to suit them accordingly when things don't go their way.   

We are at the stage now where we feel we would not like to throw any more money at Spain and just walk away from the whole fiasco.    Does anyone know if that would be an option  i.e withdraw from the contract and forego the deposit.  Is anything that simple.

Any advice greatly appreciated

K 

 

 

Thread: What is the point of a contract and BG!!!!!!!

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22 Apr 2009 2:35 PM:

Hi Maria

I've sent you a PM regarding this.

Many thanks

 

Thread: Advice required re non completion of amenities. Can we withdraw from contract due to this?

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15 Apr 2009 3:07 PM:

Hi Marie

We are in the same situation and have been advised by our lawyers that the sale should be completed before September 2009 and that before that date it is not possible to get a resolution of the contract due to non fulfilment by the developer.  

However they have also advised that the Bank Guarantee says the money guaranteed plus delay interest will be refunded in case the contract is cancelled due to breach of contract for not beginning the construction of the property or non-fulfillment of the delivery date of the property, expected to take place in April 2009.   This is 5 months before what is stated on the contract.   They have further advised that if we decide to cancel the contract we could try to execute the bank guarantee first, but not before April 2009.

We have also been advised that the common practice among promoters has been to cancel the contract with a penalty (keeping 50% of the money we have paid) or forcing us to complete and now in this global financial crisis it could be the the developers do not allow us to cancel

My questions are as follows

1.  Would we be able to execute the Bank Guarantee at this stage or would we have to adhere to the contract dates?

2. Will our Bank Guarantee cover us after April 2009?

I would be extremely grateful for your advice regarding this.

Many thanks

Thread: Question re contract

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11 Apr 2009 5:27 PM:

That's good news.   Thanks for your help.

 

Thread: Advice required re non completion of amenities. Can we withdraw from contract due to this?

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11 Apr 2009 5:08 PM:

Does that mean the Certificate of Habitation  has to be issued for September 2009 and it it's not, then can we execute the Bank Guarantee?

Many thanks

Thread: Advice required re non completion of amenities. Can we withdraw from contract due to this?

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