New, unexpected circumnstances... can I cancel my contract?

Hi All

We are purchasing a quad on phase 2 (across the road) with a completion date of 28 February 2009. However Taray in reply to my email, have stated that they are 4 months behind and with complection due on 15th June 2009. Not good.

In October last year Taray were saying it would still be ready for completion in Feb 2009, does any one know what went wrong in the past couple of months?

The building of the second phase is due to start by mid February this year, so that should remove the builders from phase 1 and let every one see what a great site it is becoming. Taray have also said the show house for the new design quad is now ready. If any one staying on site could confirm when the first 'sod' is cut it would be most appreciated as would any photos of how the site is progressing.

Cheers

Colin 

Colin

We are back out for a few days at February half term, and our completion is due end March 08. We will speak to Taray and take any photos we can

Andy, Donna & Charlie Walsh.

sorry to hear of any delays as we understand how stressful this may be

the truth of why will be hard to find but it may have something to do with slow sales

for anyone who just can't wait we can let them have a completed quad tomorrow, just bring furniture and money!!!

I Heard that taray was going to pull the plug on phase 2 due to them not selling?

I dont know if this is true.

Iain

Hi Iain

Please could you advise where you heard the rumour about the cancellation of phase 2.

If anyone is on site and able to query this with taray, we would be very grateful. We were originally purchasing on phase 1, and transferred to phase 2 due to family illness. We will also contact Parador Properties and ask them to investigate further.

Thanks

When I was out last September Phase 2 was already 50% sold so I would think it  very doubtful that it would be cancelled.

Dave

Hi i heard the rumour on site. like i said i dont know if its true or not.

Iain

Normally the builder in Spain will look to sell at least 70% of any phase before starting construction

Because of the slowdown generally, and the discounting on key ready properties, we are seeing an increase in developers cancelling constructions and often offering people a switch to another property on another phase

On one site I know of 5 owners who switched to much larger properties at no additional cost, because it´s tough for the builders and they do not want to loose the customers to keep this in mind

Taray are one of the better constructors

Hi

Thanks for the replies.

My main gripe is that Taray have delayed construction/completion but have not informed any one. I visited the site last October and Taray's sales team were telling all estate agents and buyers that complection would be Feb 2009. We were initially told in March 2007 that it would be ready before Feb 2009 but Taray  were being causes over completion times. The sales and price sheets handed out by Taray shows 13 out of 27 quads sold and 10 out of 20 duplexes sold.

 Also 9 out of 24 properties sold on phase 9.1 (dont know which block that is). Manzana 6.2 has only sold 8 out of 36 apartments.

Perhaps it is just the slow down in the property market but I can not see Taray building a small development with communual pool and gardens with out carrying on and building more properties to share the facilities, albeit more slowly. On the other hand they could build the properties without the pool/gardens and tell every one to use phase 1. Then when the market picks up carry on with phase 2.  Although the pool is to be ready at the same time as the properties I am sure there would be way for it to be delayed.

Interesting, possible nervous times a head for the residents and future residents.

Colin

There is a changing trend now in the sales contract to exclude any firm completion date and not to include any compensation clause if those date are exceeded by typically 3 months

In my own case I was able to claim, and was paid compensation for a late completion

I am not sure how the Taray contract is written but it may be worth getting advice from an independant lawyer as many people are now cancelling their contracts because of a combination of the weak rate pound against euro, the price reduction that´s happening and the amount of bargain resale and key ready properties out there

I know that this will be seen to be an odd statement considering I make my living from inspecting new properties but if you but a resale or complete property normally all of the infrastructure is in place and the setup costs and taxes are less

On other forums I have been watching feedback that the Spanish banks are getting nervous and the valuations have started dropping and it is important to understand that the valuation is not necessarly the true value of the property, but purely the amount that the bank is willing to risk agianst the 70% that they normally lend

If your mortgage is tight and relying on  fixed figure estimated against the original value please be carefull and don´t forget the extra 10% fees and taxes plus the mortgage arrangment fee

Hi

Thank you for all your comments.

If anyone on site hears any news at all about phase 2, we should be very grateful if you would post it on here please.

Carol

Im starting to wish id never bought a property in spain it dont make sense at the minute with rates & market etc.

Id rather be renting at the moment and watching the money grow interest but what the hell its to late now.

I just booked our 1 way flights for 2nd june cant wait.

Hope everything is ok with phase 2

Iain

Hi

I have heard back today from my agent that Taray will start on the infrastructure of phase 2 in March. The first properties are forecasted to be ready around September 2009.

Last week it was announced the build was 4 months behind now it is 7 months behind. There has been much praise on this forum for Taray and their build quality but I have my doubts over their honesty.  Taray will be sitting with apprx £2million worth of deposits with any delays making them quids in. If the properties are selling to slowly, then Taray can slow down the rate of completion to match sales but still hang on to the deposits.

Taray have still not replied to my 2 emails last week regarding phase 2 - another question mark over their service to current / future buyers. I wonder how many purchasers know about the increasing delay in the completion of their property.

Phase 1 is slowly coming together but beware Taray dont complete all the peripheral work on site. One of the first things builders cut back on or delay in times of poor market conditions.

Taray should offer a full refund of all money paid to those who wish to cancel their contracts due to the long delay and offer compensation to those who wish to complete.  But I think that is as likely as blue snow in the summer in San Cayetano. Taray will earn a couple of thousand pounds in interest per property due to the delay.

Our solicitor told me he had put a clause in the contract dealing with delays in completion, I will let everyone know how succesful it was.

Colin