Disappearing developers - what is the right course of action

Hi,

I'm one of a number of people who have placed a large deposit on apartments in Vegamar 1, Almoradi, the builder Idearco (Proalto S.L. I went over in December to get my NIE number and sign but was told Idearco would not be signing for any more apartments until end of Jan 08.  Despite repeated requests from lawyers PSI and myself no date set  until 28th March 08, which was cancelled by notary.  On 27th March electricity cut off, Idearco told administrator he was no longer responsible for the site.  The administrator has set up a community and electricity is back on for a limited period. Idearco has not paid the utility costs and bills but I am sure there must be other debts.  There are several people who have paid the deposit but so far have not signed final contracts, idearco have only one person working for them and contacts are practically non existent.  Initially we were told they had gone bankrupt but the word that this is not the case, just cash flow.
As you can imagine a very worrying situation for everyone, my head tells me not to even consider signing and handing over any more money until the situation is clarified.  The advice of my lawyer is that regardless of the problems with the utilities, the fact that there are no workers employed to deal with snagging problems and no apparent guarantee that the white goods, lighting fitments and furniture which formed part of the package will be included, I should sign so that my name is on the deeds because at the moment Idearco are the legal owners.  The alternative is to be involved in expensive, lengthy legal process for up to 4 years to get any money back.    At the moment Idearco are either not giving notary dates or simply no turning up so there is no choice to be made but I would appreciate hearing from anyone who had experienced similar problems or has an unbiased legal view.  I cannot understand why Idearco just doesnt close all the deals it has already made which would allow them to settle with their creditors.  Another tale of the spanish dream turning into the spanish nightmare!!! 

Help,

Safia

I am going to play devils advocate here,

I am going to guess you bought through Amba sun.

I am guessing that they introduced you to PSI.

I would seriously consider asking for a second opinion regarding the legal status and your choices from an unbiased source i.e. Maria De Castro on this forum,at least you will get an honest opinion and unbiased answer.

I have also heard that Idearco have filed for voluntary bankruptcy.

I may be totally wrong with my assumptions and if so i apologise.

Regards

Georgia

Dear Georgia and Justin,

Thanks for your responses, depressing though they are.  Absolutely right in your suppositions Georgia about Ambasun and PSI, spot on.  I will contact Maria to seek advice about this but if you are right about the voluntary liquidation then I have lost my deposit .  Thanks again for your advice, its a great pity I did not click onto websites like this before I decided to buy in Spain.

Safia

Dear Safia:

There are some Commercial Magistrates who are deffending your situation to be special and therefore if a creditors´meeting is finally constituted, you can fight to be special creditors against those concrete assets, and complete or have a credit against the good.

That way, you will not be included  into the big bunch of creditors against the Company´s goods.

But this is not expressed by Law but by Magistartes decissions ( Court Cases).

My vest wishes of support!

Maria

Hi Safia,

Unfortunately or fortunately,depending on which way you look at it, i have been in the business long enough to make an educated assumption of the situation by the name of the lawyer you are using andthe company that guided you to them.

My advice to you would be;

First chance you get Monday morning talk to a lawyer other than PSI concerning the situation,speed is of the essence here.

I am not saying you have been advised wrongly or casting aspurtions,just that a second opinion from someone removed from the chain can be invaluable.

I do not know Maria personally but i understand she is very ethical and proffesional and that could be a good start.

Don't make any knee jerk reactions untill you have,in my opinion if you catch a problem early enough it can purely be an obstacle that you can out manouvre.

Don't panic,act quickly and assess  the situation and when you know what you are up against move forward.

I know Idearco are in trouble but how far down the line they are could be only rumour.

I wish you all the best.

Regards

Georgia

Dear Maria,

Thank you for your e mail.   I have read a large number of your e mails on the forums and am amazed that a lawyer of any nationality is willing to give free guidance to people she has not met.  I realise I sound cynical but in the circumstances I am sure you can understand why.  My 'law firm' PSI state that I should complete if possible otherwise I might not even get my deposit of 42,000 euros back.   Would you agree with their advice and if the worst happens how do I go about contacting a commercial magistrate (is a magistrate in Spain a special type of commercial lawyer, in England they are types of judges in the lower courts, not trained lawyers).  Thank  you again for your comments.

Kindest regards,

Safia