20 Mar 2007 5:10 PM:
I have been several emails by purchasers who are considering pulling out of the development, and here is a summary of information which may be useful to all.
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Many have purchased in Spain with hope of appreciation and their hopes have been dashed. In most cases the properties have been purchased over the market price, and in the current spanish market these properties are not sellable. Properties west of Estepona are particularly difficult to sell (or rent for that matter!)
If you are considering cancellation of your contract it is useful to know the following. You have signed contract with Arenal Sur, which is the company jointly owned by Arenal 2000 and Caja Sur (bank). As Arenal is now out of the development,. Arenal Sur is now completely owned by Caja Sur and they will be responsible for delivering on all the contracts terms and conditions. One of the terms and conditions in the contract is concerning the completion date. If the completion date is delay more than a period of time as a result of their fault, you are allowed to cancel the contract and ask for the original funds and compensation (usually 10% of the deposit or some interest amount according to ECB rate). You will really need to look at your own contract and be able to show that the delay is caused by Arenal Sur. Unless they admit this in black and white, this last part is quite difficult. Also note that the habitation license doesnot mean that the apartment is habitable. Apartments in Phase 3 of Arenal Golf also have licenses, but the lifts still do not work, there is no working entry system, and most of the common areas have no electricity. SO MAKE SURE YOU VISIT THE APARTMENT BEFORE SIGNING ON THE LAST DOTTED LINE.
My experience is that most Spanish Lawyers do not really advise their clients correctly and in some cases they are totally useless. This is true specially if they have been introduced to you by the property agent, who is most likely collecting comission for bringing business to them. You need to ensure that you understand the contract you have signed with Arenal Sur.
One small word of warning (this is the small print !) >>> In spain, once you part with your money, it is usually very difficult to get it back. Spanish law does not work as well as UK and is generally not there to protect the customer. <<<
On a completely separate issue note :
1- you only have 15 days from date of completion to report any Snags to the developer. In most cases, you may not even have the utilities e.g. electricity, connected by then, in which case this will be quite difficult. Ensure that your contract increases this to at least 30 days. Wihout electricity you can not report problems with the new kitchen or any faulty electrical wiring.
2- and then add a clause to force repair within 2 months. Some developers are very slow in fixing items.
3- ensure that common areas facilities are working specially if you are dependant on them, e.g. the lift
4- in most case the airconditioning would not be connected when you take over and you will have to organise this separately. Ensure that you test this before the workmen leave your apartment. test for both hot and cold air.
5- if you are looking to buy a furniture pack for your apartment, then get a reference from a friend or someone you trust and do not part with your money too easily. Note that in Spain you can negotiate the price. Agree the items in writing, ensure that they deliver the items you have agreed with them, before paying the balance.
Hope all above helps,
David.
Community thread:
Getting a trade
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