Buying repossessed property property in Costa Blanca and payment of deposit. Advice?

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23 Jul 2009 00:00 by waoolis Star rating in Preston/Cabo Roig. 10 posts Send private message

Hello everyone, new to this very informative and helpful forum.

I have a friend who has agreed to purchase a property in spain.

A payment of 3000 euros was paid on the day of the visit and went to see a solicitor.

my friend is currently awaiting a mortgage offer when an email was received out of the  blue explaining that the balance of the 10% deposit is required to be paid now as the property is a repossession and the bank require payment.

My friend was never told this at the time and is expected to make payment of the balance in the next few days?!

Does this sound reasonable/right or not?

Any help will be appreciated

With thanks

 

 

 

 

 

 





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23 Jul 2009 22:41 by Goldie Star rating. 159 posts Send private message

If it was me I would not pay any further money, I think your friend should go back and see the solicitor what happens if he does not get the mortgage? And more to the point are there any debts on the property?

 





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23 Jul 2009 22:56 by waoolis Star rating in Preston/Cabo Roig. 10 posts Send private message

Thanks for the reply.

Apparently, the solicitor has advised that if they dont complete, the sale they will lose the deposit (3000 euros), this was before the request for further payment!

With regards to the debt on the property, I believe the solicitor has advised that they will ensure that any debt associated with the property will be checked and if there is any debt, it will be resolved before completion.

following your reply it seems that it maybe neccessary to obtain alternative legal advice?





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24 Jul 2009 00:42 by morerosado Star rating in Guardamar del Segura.... 7693 posts Send private message

morerosado´s avatar

Hi waoolis & welcome. We have a resident lawyer called Maria de Castro on the forum who checks posts (often very late at night ) & I'm certain she'll see this thread & advise you.



_______________________

PLEASE HELP  http://www.galgosdelsol.org/ 

Galgo blog  Over 229,000 views 27/5/2014

 

 

 

 

 




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24 Jul 2009 10:04 by Goldie Star rating. 159 posts Send private message

Hi Waoolis

Yes I can understand about the 3000€. but your friend may have been misslead?

All i can add is take good legal advice.

Good Luck





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24 Jul 2009 10:13 by mariadecastro Star rating in Algeciras (Cadiz). 8117 posts Send private message

mariadecastro´s avatar

The rights of your friend for the refund of the 3000 € will certainly depend on the wording of the deposit contract he signed. If he signed nothing and cannot carry out with the purchase due to financiation problems, he has rights to ask for that money back.

You may find the following articles interesting reading:

http://www.eyeonspain.com/spain-magazine/deposit-contract.aspx

http://www.eyeonspain.com/spain-magazine/contract-resale.aspx



_______________________

Maria L. de Castro, JD, MA

Lawyer

Director www.costaluzlawyers.es

El blog de Maria



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24 Jul 2009 11:09 by waoolis Star rating in Preston/Cabo Roig. 10 posts Send private message

Thanks everyone for replying, especially Maria de Castro

I managed to obtain a copy of the purchase contract and it makes no provision for further payment over and above the 3000 euros already paid.

it says that

' The outstanding amount, eighty two thousand euros (82,0000 euros) will be payable against the official title deeds before the notary public, on or before next (date here)"

the 82,0000 being the balance of the purchase less 3000 euros.

So, it seems to me that there is no legal obligation to pay the extra?

My friend doesnt want to lose the property and if he needs to pay it (to reduce the total amount payable on completion) then he will do but it doesnt seem right to me.

With regards to the deposit should the sale fall through. the contract states;

".....should the buying party breach the present contract and renounce to this purchase, the buying party shall hereby lose the amount/s granted up to the breach of contract"

any further thoughts?





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24 Jul 2009 12:51 by morerosado Star rating in Guardamar del Segura.... 7693 posts Send private message

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Hi waoolis, didn't I say Maria would appear, she never lets anyone down, despite being a lawyer with her own business & being a mother of two very young chidren. We are so fortunate to have her here.

I know that the vendor (if they opt out of the sale) has to pay double the deposit left by the buyer whilst the buyer loses the deposit should they not go ahead.

Correct Maria ?  



_______________________

PLEASE HELP  http://www.galgosdelsol.org/ 

Galgo blog  Over 229,000 views 27/5/2014

 

 

 

 

 




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24 Jul 2009 13:06 by waoolis Star rating in Preston/Cabo Roig. 10 posts Send private message

Thanks Morerosado

You we right., Brilliant and committed, I wish there more people like that.

Yes, the contract does provide that if the seller pulls out they have to pay double the deposit.

Anyway, the way i see it is this;

A day after the financial information was sent, they requested the extra money IMHO, It may be the case that in fear of the mortgage not being approved and thus not being able to complete they would have had 8500 euros to cover there costs, as the contract provides that the buyer must give up what they have paid upto the breach i.e not being able to complete.

Thats what I think is happening here!

An email has been sent to the solicitors explaining why my friend does not consider that any money is due over the 3000 deposit already paid at this stage as the purchase agreement does not provide for any further payment being made at this stage.

Over to you Maria :D





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25 Jul 2009 00:32 by advisor Star rating in London most of the t.... 316 posts Send private message

dont forget all the other associated costs with purchasing in spain either



_______________________

 

Nobody plans to fail, many fail to plan, sadly the result is the same.

 

 




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