World Cup Fever!!

We bought May 06 so I presume the bank guarentee expires then.Not sure about Menta phase 2 or 3 .
moll

Hi Folks

Despite the best efforts from me and my lawyer to obtain a new bank guarantee prior to existing ones expiring i can let you know  that we have failed.
i have sent letters to the director who wrote back and assured me that we would receive new a new guarantee prior to our existing ones expiring, i have been told by staff at corvera that our guarantee would be made a priority, but the 30/09/08 has come and gone and we now find our 30% deposits  are unprotected.

We have been contacted regarding air con offers also all sorts of other incentives, but they cannot abide by the terms and conditions of the signed contract document and produce a valid guarantee, they clearly have different priorities  to mine.

This company is clearly in breach of the contract and also Spanish legislation regarding protecting staged payments to off plan developments.

I am disgusted at the way they have dealt with my ongoing requests regarding this issue, and still have no idea if and when i might be in receipt of a valid guarantee.

Am i alone or is anyone else who bought on phase 2 in the same boat.

dave 

Perse,

I was in the same position as yourself and have responed in the other "bank guarentee" thread.  Here is my response from the other thread ..

Received my guarentee today (via email) after calling Solicitor this morning.  Was renewed on 24/9/08 and is valid through 31/10/09.  Guarentee was for the combined first 2 installments (30%).  It is with the same bank as the 2nd installment guarentee.

I share your frustrations - despite my lawyer chasing, they would not issue new guarantees without the old ones being returned (which seems very odd to me). I have sent them over this week but as yet have no replacements. Not at all happy to have 30% deposit exposed in the current climate!

Just to add that I still haven't recieved my updated guarantees, does this mean that at the moment if Corvera went belly up we are not covered? My solicitors have the original guarantees, so they can not use this as an excuse, at any rate I don't understand why they need them back.


kev

I have been informed by Corvera / Calidona that I should expect to wait another 2 weeks for my new guarantee. 

Despite the fact that they have had weeks to sort this out.  They are now exposing me to risk in the bleakest economic period for decades. 

Compared to other developers, I am led to believe that this risk is minimal as the land was purchased outright.  However they are experiencing cash flow difficulties and will not be in any rush to complete the entire resort.

Are others in this position?  Does this constitute a breach of contract?  I suspect the the answer is yes to both of these questions but what can be done about it?

I agree with MrUnhappy that it's a particularly bad time not to have a guarantee.I still have not had my guarantees ( and have heard nothing for some time), I thought it was a legal obligation to have the guarantees in place so isn't some one at odds with the law? Does anyone know who exactly is responsible , is it Calidona or the solicitors or the bank ?


kev

Hi All,

Just letting you know we received our bank guarantee yesterday from our solicitor having requested an updated one in Sept. It  was sent back to Corvera for renewal as the solicitor stated in an e-mail to us, so in answer to your question the guarantee must go back to Corvera to be renewed also received our building licence for our Menta phase two from Corvera.We are dealing direct with Corvera no agent involved thank god.We also recieved our loyalty card application forms. Having visited Corvera a few weeks ago I would be very pleased with their progress.

What does the "loyalty card" entitle you to?

Hi all - after many emails to our solicitor, we finally had an email from him this week to say that the renewed guarantees had been received and were attached. They were not attached, and we have requested them again, so will let you know when we've actually seen them!


Hi Gporter. The loyalty card was offered to Phase 1 and 2 purchasers as an incentive to complete within a specific period of time. Don't know if this offer is ever likely to apply to other Phases. For more detail, see the thread headed 'Promotional Card'.

Hi,

In answer to your question the loyalty card intitles you to white goods or soft furnishings not air con.

Hi G.Porter - the Customer card entitles you to "purchase of furniture and accessories, property rental, golf in general, cleaning and maintenance services, use of sports facilities....." (quote from Corvera).  I seem to remember an earlier letter from Corvera that stated that the credit be spent on air con but I think that orders for this should have been made already and they were generally overpriced.

In my view the best usage of this would be in terms of the facilities as furnishings bought through the developer tend to be more expensive.  However I am not sure how long we might have to spend the credit.  Without trying to sound facetious, I would prefer to spend the credit on the facilities but I don't know when they will be available.

With regards to this thread - still awaiting full bank guarantees......

I think the credit is valid for one year from completion.  I hope to spend mine of outside furniture.  Oops totally off track for the bank guarantee thread.

Anita.



This message was last edited by Anita on 10/24/2008.

I was just wondering if I was the only one still waiting for the bank guarantees that expired at the end of September ? It's a bad economic climate to be in without a guarantee, does anyone know what would happen if the company went belly up at the moment, would I lose my money due to their incompetance?

 

kev

Sorry for being silly,but what does that article mean?
Is it that they cannot complete the work?
Ijust ask because they have not even started our apartment yet 18 months after we have given them 80,000 euros

Hi Paul and Carol, the Bank Guarantee covers your payments to date if the developer goes bankrupt.  It also covers your payments if the build time exceeds the 18 month + 3 month timescale.  The 18 months starts from the issue of the Licence for your Phase.  (That is if the Conditions of your Contract as the same as mine on Phase I.)

Kev, when we applied for our Bank Guarantee to be extended it took about 6 weeks.  I would imagine that you would still be covered if anything happened to the developer as it is an extension that is being applied for.  I'm sure it is stated in the Contract that all payments are covered by Bank Guarantees whilst your property is under construction.  Check your Contract - (if its the same as mine page 3 section five - Guarantee for Prepayments).  Could have got that totally wrong though!  Ask your Solicitor to check. 

Anita


This message was last edited by Anita on 10/30/2008.

Thanks for the feedback Anita 

On the Bank Guarantee itself it states that  'the certificate is valid up to 30th September 2008, when it will be cancelled with no effects, and since the before mentioned date, there will be no possibility of claiming any money from the guarantor bank'. 

So it appears to be clear cut I have no guarantee until I get the replacement, what I was thinking is that whoever is responsible for updating the guarantee ( is it the developer or solicitor), their failure to get the guarantee in place might make them responsible in law for any claim?

Kev

I am in a similar postion to others on this thread , in that I have not recieved my updatd bank guarantee for returning it direct to Calidonia  3 weeks ago now- however , I did make sure i got a signature on delivery and that is that as far as i am concerned (unless anyone can tell me differently)

Have finally received our updated BGs, so hopefully, those who haven't as yet will receive theirs soon. Our solicitor is from the firm of Martinez Echevarria...

Interestingly we received our BG and Loyalty forms in October. They were completed, scanned and returned by e-mail

Today I am advised that they were not received at Corvers.  (Lucky for me that I cc'd in the solicitor who did receive them - eh?)

I have resent again today,