Finca Parcs Las Higuericas - has anyone tried to discharge their contract to get monies paid back

I would like to know if anyone has tried to discharge their contract under the late completion clause and have asked for their money back under the bank guarantees.  And if so what did Cleyton Ges say.

If you are on Phase 1 or 2 you have no chance.  The construction company is covered by a clause in the contract where they can add extra time to the contract if they had conditions where they couldnt work due to circumstances out of their control, this is detailed in the contract.

It's people like this that makes it bad for the rest of us that want to keep our property, why do so called investors ect get involved in something they cant afford to complete on ?  Surely they should be prepared to take the good with the bad like the rest of us and accept the consequences.  There are plenty of other poor people that have invested in properties on projects up and down the costas that are not now going ahead and have lost a lot of money, were the lucky ones at least the properties are being built and starting to be handed over soon.  According to a letter we recieved recently from the developer, the building company are covered by a clause that coverd them for time that they were unable to work this is also detailed in our contract , surely the developer must be getting very frustrated with these delays after all they cant be getting any income from this until the houses are completed.

One of the problems which is now emerging and where there seem to be no easy solution is getting enough money to buy the properties, based on the valuation as the lending rules have now changed

Now the banks are tightening up and they will lend 70% to non-residents based on the valuation fee or the purchase price, whatever is the lowest and with fallig property prices this is becomming a real issue.

I am not certain if on this site any valuations have been carried out yet or if there is an option on a builders mortgage bu it will be interesting to report on developments in this area

The other point to make however is that peoples personal circumstances change, especially over a 2-4 year period while waiting for completion of a property, which can  include divorce and job loss so they may weel have been able to afford the property when they signed

There are a number of est cases going through the Spanish Courts where the valautions and changes of circumstance  has resulted in people not being able to complete and them making claims for a full refund under the " Force Majeure" principle of Contract law and liabilities, and it is expresssly contained in the model-advised contract by the National Consum Institute.

On average we get at least 20 e-mail a week for advise on how to avoid completion and how to cancel contracts and the the normal advice given is

Legally you do not have to complete on a property that does not have a Certificate of Habitation and many banks will not mortgage these properties and strictly speaking owners should not be using them

If you try to cancel the contract chances are you will loose all the money paid and that the developer will pursue you for the full balance

There are conditions in most contracts that will allow a developer to extend the build time howvever they can be tested as being fair and reasonable and the Spanish Courts typically allow a maximum of a 6 month overun on the agreed contract date

At all costs try to first negoiate a settlement with the developer rather than going through a lengthy and expensive legal action as some lawyers will be more than happy to represent you

I hope some of this information helps

 

I see in this weeks Free press 'The Leader' there is a full page advertisment from Town and Country for the Fincaparcs development. There is a limited offer for the houses selling at €215,000 saving €64,000 off previous prices. Does this represent a good deal?

Will the company complete phases 3,4,5 and the community centre? Doesnt seem to be any commitment to this?

Ive heard that 60% of phase 1 are still unsold and many still considering pulling out - will the remaining residents or prospective clients be left on an incomplete project with no facilities?

Have a friend who liked the press-ad but is cautious. Any help appreciated, thanks in advance.

One of the problems is that the developer will not list any of the planned facilities as part of the sales contract and it is therefore difficult to prove liability or gain compensation if they are not built

This is true for example at the Polaris World sites where owners still, 2 years on from completeion, do not have the promised facilities making properties more difficult to rent and where owners have to travel for good food and entertainment

One condition that new buyers may ask to be included in contracts are guarnatees on facilities with agreed completion dates

While sales at developments are slowing down commercially it becomes less attractive to build the commercial centres bars etc as they are difficult to rent, aging there are real examples on this with cometed facilities that are almost empty 

The other point I suppose is if they are now offering such large discounts in the Spanish press that this may have a knock on effect on the valuations for completed properties as you would normally expect the value of propertues on later phases to increase

Yesterday in the Spanish press they were reporting discounts of 36% being offred by developers for key ready properties with some examples in this region

Ther decision to walk away is never an easy one you should always seek advice from an independant lawyer first

Ive heard through the grapevine that there is an unfinished complex built previously by the developers? People left without proper services etc?

Anybody got any info? Would like to visit this site. 


This message was last edited by PWC on 10/23/2008.

It seems that the developer is now in a Catch 22 situation. 

Can't sell the properties without a commercial centre - won't build the commercial centre until the properties are sold.