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El blog de Maria

Your daily Spanish Law reporter. Have it with a cafe con leche. www.costaluzlawyers.es

Legal tip 352. "Beware of..." an old post most relevant now
01 October 2010 @ 09:33

 20 August 2009 

Legal tip 127. Beware of distressed properties on sale 

Some distressed properties are being sold by developers/ agents, whose initial buyers did not come to the completion of the property ( due to lack of finances, developer´s delay or any other cancellatory breach...),at a much reduced price: the fall of the market and the fact of a 30% deposit being already at the seller´s pocket make this possible.

The danger is here:  the  1st buyer still has on the property:

-  15 years to act for contract cancelaltion and refund of money paid ( if there is ground for contract cancelaltion) or

-   No deadline to finally buy,  as long as his contract is not cancelled  the buyer keeps buying rights on the property.  

Imagine you buy ( 2nd buyer) a distressed property now and  in two years´ time, once there is some recovery in the financial industry, the first buyer wants now to buy what has been offered and bought by you at a much reduced price. According to a contract he has with developer and which has not been formally cancelled, he has buying rights on the property you also bought:

What would you find then? Yes, a crime by the seller but.... a nightmare for you as a Judge might end up passing a decission by which the initial buyer has rights to buy and you have just a judicial action against the criminal seller for the money you paid and .... no house.

It is always advisable to have a good independent lawyer. Believe me! 

Maria

web@costaluzlawyers.es

 

Toalla en Aguadulce, CostaBallena, Cádiz by Photo Javi at Flickr.com




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