A question for Maria, Faults with new property. Any advice please

We completed on a property in April 2008. (Worst thing we have ever entered in to in our lives!)

We have had constant problems since completion.

Initially the snag list did not look to bad, but the developer took ages to complete and only after endless phone calls/emails from us in the UK and our friend in Spain who was overseeing the snagging on our behalf.

Since then there has been major structual problems.  The sewage pipes were laid wrong, which caused sewage and water to come back up through the sinks/shower/baths etc.  The developer had to get workmen in to dig up the floor in the lounge and hall and lay new sewage pipes which took over 6 weeks to do.  Because of the sewage and water the whole house has a major damp problem and all of the walls downstairs have had to stripped back and re-plastered.  These were then painted before the plaster was dry, ending in more mould and damp through out the house from the ground floor to the top floor, even the ceilings have damp/mould on.

The tiles on the two small roofs have had to be removed and replaced because they were leaking, and we are unsure if they still leak.

The back door frame is warped and the door does not close properly.

The air-conditioning ducts are not long enough in the top floor to allow the air-conditioning to work.

These are but a few of the problems which are ongoing.  The list is endless.

We have been paying a mortgage since April 08 and we are not able to get rental for the property.  Most of the front row of houses ( there are 2 rows) have simular problems but our appears to be the worse affected. The back row do not have these problems.

Many of the original people who were going to buy on this site have not completed and the developer has only sold 14 out of 42 houses to date.

We would like to know if we have a right to ask the developer to buy the house back from us as it is a total mess and we would never have entered in to the contract had we know the problems that could have arisen.  What rights do we have as far as trying to get compensation if they will not agree to buy back.  We know that the  houses are now up for sale for approx. 40,000 euros less than we originally bought for at the moment and I do not think they are even worth that with all the major problems.

Appreciate any advice from anyone who has experienced a simular situation or can give any indication on what we can do.

Thanks

Hi Maria,

Your story is not uncommon in the current marke.  M anydevelopers simply don't have the money or interest to put things right. You should seek legal advice ASAP (I can recommend a lawyer experienced in such issues if you require one). Normally the only opportunity for buy back is when defects (known to the vendor) have been covered up, provided that the claim is made within 6 months of purchase. It sounds like your defects were known to you and not deliberately covered up as such by the vendor, hence a buy back would be difficult to achieve (if however you think there is evidence of covered up defects you might just have a case). I have even seen people pre completion being forced to complete despite the fact that significant structural defects exist as many developers now use the excuse that the market has turned and buyers simply want to get out of purchases for financial reasons (you should take efforts to keep evidence of furnishing the property or improving it so as to prove that you fully intended to use it until things started going wrong. Unfortunately the 10 year 'builders guarantee' normally only covers structural stability issues so this probably won't help you. Don't forget the project Architect as they have ultimate responsibility for structural defects and carry indemnity insurance. Some builders might have an insurance that covers their first three years of responsibility so ask the builder directly if they are insured and get contact details of the insurance company.

Sometimes a structural report and site meeting can put you at the front of the que and get the builder to take action, and you might also consider having the required works valued and claiming this value back form the developer. You might need to take legal action (which is normally costly) so as to stop the builder from closing down. If they have no actions against them, they can fold. Can you get together with other residents and split costs?

I am sure you will back my view that it is better to get all defects corrected before final monies are paid over. Once the developer has all your money, you have very little bargaining power. It is very sad that most developers are all to keen to pressurise buyers to comply with payment deadlines and yet fail completely when it comes to their own contractual obligations.

Hi,

sorry to hear all the problems you have...

Under Spanish law it is possible to have the purchase contract cancelled at court and the price refunded, provided that the house is "unsuitable" for inhabitancy purposes, or "completely different" regarding the terms marketed. It would be necessary to check through a technician's report all those things and also that the property still has got serious and not solved defects. However, the court decisions do not follow a definite pattern, so that it is difficult to say how the court ad hoc would take your claim. There is also a risk that the developer - usually a private limited company - becomes insolvent, so that you would not get your money back.

Another option is to force the developer to do all the repairs. This option has got more possibilities of success, if the defects are clear.  

In all cases, the complaint IN WRITING, IN SPANISH and also THROUGH CERTIFIED POST or some ways which ensure the reception are BASIC. Do not rely on unanswered e-mails, phone calls or normal post.

Dear Kernow:

As Fairway very well have said, you can check and see ( with a Lawyers´ help) if you can act for contract cancellation due to the non-habitable conditions of the house, through negotiation or through Courts. A good survey report will be needed to that effect.

I am pasting here the EOS article on building deffects if you want to get more information on this: http://www.eyeonspain.com/spain-magazine/building-defects.aspx

Best regards,

Maria

If the damp is ongoing (following initial 'repairs' and drying out), and especially if mould is evident, non habitable status might well be proven. It is important that you have given the builder opportunity to come back and repair again i.e not refused them entry for example. It is common for condensation issues in many new properties even when leaks are not present , and electronic damp meter testing will help to diagnose issues. Severe damp would also render electrical installations unsafe (again a risk to habitants). Do you have other issues (not included in your first list), that would affect habitability?