Unite to Fight

Expatica - Health
Post reply   Start new thread
New - Old :: Old - New

Pages: 1 |

Residencial Santa Ana del Monte forum threads
The Comments
24 Nov 2008 12:00 AM by TonyMal Star rating in Oxfordshire. 1090 forum posts Send private message

Dear All,
The following email was read by Brianmags at the weekend(he has been in Germany) it was sent to him from Spain last Monday. It appears to support the idea of purchasers without BGs uniting into a body and fighting to have their properties. It may well be that purchasers acting together in forming SARC and the  I WANT MY HOUSE  campaign, have started a new way for purchaser power to protect deposits  by demanding to be purchasers and not creditors ( how else are banks going to make money?)

All the best
Tony
Please scroll down

Unite to Fight
 
Please note that the information provided in this article is of a general interest nature and intended as a basic outline only. It is not intended as any substitute for detailed legal or other professional advice specific to the reader’s circumstances. Nothing contained in this article should be seen or taken as the writer or publisher providing legal or financial advice.
 
You may only be 1200 to 1500 miles away as the crow fly’s between the UK/Ireland and the South of Spain but when a dispute erupts with your developer you may as well be on Mars! There is an overwhelming feeling of isolation.
 
You have seen the plot, studied the project, chosen your apartment, signed a Private Purchase Contract (PPC) and, no doubt, paid over a hunk of the purchase price by way of a deposit. All plain sailing – but that was nearly three years ago – or at least it will be in March 2009. In that time you have become one of the worlds other two hundred internet experts on your development.
 
You have made a number of on-line friends who are in the same boat and have swapped with others, via a number of forums, details including pictures of “your” development in its various states of completion or not.
 
A few purchasers have combined a holiday to the area with a visit to see the sales agent. They have discovered that the agent closed their office without any notice a year ago – no wonder they stopped replying to your e-mails; your lawyer is now in Brazil or Morocco and the developer has gone into hibernation with their sales deck – or portacabin - now being manned by a solitary - but talkative “Prosegur” security guard - Antonio.
 
The building seems close to being completed – so Betty from Halesowen was right when she reported in June 2008 that there was water in the pool and the top soil had been delivered.
 
So why hasn’t the developer called upon us to complete? Why is it so quiet? Has construction stopped? The terrace tiling seems to need completion and the paint applied to the exterior walls could do with another coat – but otherwise it looks ok. 
 
Well, on digging a little deeper you discover that your developer and the builder are in dispute and for the first time you hear a word that will become all too familiar, “embargo”. This is a legal device deployed by a creditor in Spain to turn the screw on the party who owes him money.
 
The builder, not surprisingly is unwilling to complete construction without payment – hence building has indeed stopped. A little further investigation shows that the plumbers and electricians have also withdrawn their labour for the same reason.
 
The developer is stuck in the middle of a cash flow crisis. Building costs have risen since he first sold the development off plan. He banked – as he was required to do by the financing bank - all of the purchaser’s deposit monies in support of his mortgage finance to complete the build. Since then the bank has been credit crunched and unwilling to release more.
 
The first phase of the development is complete – fully licensed but also standing empty. The developer sold all fifty apartments off plan but since being called upon to complete sadly a number of the purchasers who had expected to be able to raise local mortgage finance have now discovered that obtaining funding in Spain has become increasingly difficult. The current criteria being applied are invariably a maximum of 60% to 70% loan to value or purchase price – whichever is the lower. This combined with an institutional objective by the local valuers to down value has resulted in defaults in completion amounting to, say, seventy percent of Phase 1. The result being to starve the developer of much needed cash flow.
 
Depressed – yes, me too. However, there is a glimmer of hope.
 
Some banks, who may have financed the development from the start - and who have given off plan purchasers the all important bank guarantees - when faced with the developer who is in default of their repayment obligations are starting to consider a variety of solutions.
 
Rather than causing the developer to enter into Administrative Receivership and then having to deal with an Administrator with little or no experience of the property market, the financing bank may be willing to compromise with developer by taking the property into their control and writing off the debt to the bank. This means that the bank become an estate agent and is keen to make sales of the unsold units thereby providing a fillip to the “distressed “ priced property market by selling modestly priced stock which is complete or close to completion.
 
In taking this position the bank will usually be on notice of those PPC’s signed by the off plan purchasers – including those not in default of completion. In establishing this arrangement we believe there exists opportunities for those purchasers.
 
Firstly, it may be appropriate, in relevant circumstances, to consider calling on the Bank Guarantee. If the facts of your case allow you to demand that the granting bank honours their guarantee to you this may be the most expedient way for you to recover your deposit and stage payments.
 
One aspect which you should bear in mind is that it is usual that a Bank Guarantee can only be called upon when there has been a failure to deliver your property by an agreed date and not before unless the developer or promoter has entered into bankruptcy or similar before such date.
 
Let’s be crystal clear - we have seen and heard of a number of situations where the banks have wriggled and sought to delay payment under the guarantees that they have granted. It is essential that all payments that you have made are protected by such guarantee and, more importantly, that the guarantee itself is properly and fully executed and continues to be completely valid. Any failing here may well give the bank the right to swerve their obligations.
 
Secondly, and this may be seen to be a more commercial solution for those willing and able to complete their off plan purchase - seek to negotiate with the bank on the agreed purchase price as stated in the PPC. With the development in the hands of the bank their aim will be to recover their mortgage debt owed by the developer – as quickly as they can. The price that you agreed to pay will no doubt have been scaled on a basis of the developer making a 20% or 30% profit on the deal. Therefore there may well be some flexibility with the bank to say that the price you would be willing to pay should be 20% to 30% lower than the PPC agreed purchase price. It’s got to be worth a try!
 
We have already noted that you are at some distance, so how are you going to address these issues and progress them in Spain?
 
A daunting prospect is the usual emotion but look at what you have. A community of purchasers – some of whom may sadly have dropped out as they simply do not have the means to complete - but others who are keen to preserve their deposits and see their purchase through to completion should gain strength from each other and unify.
 
A group action has got to be appealing to the bank which is seeking solutions. It is in no way going to be an easy negotiation but by gathering willing players together and approaching the bank in a formal and collegiate manner must exponentially improve the prospects of success. We have seen success from group actions in the past with parties joining together – unity does mean strength - to bring a weight of numbers to a negotiation.
 
It is essential that the group has a focal individual for the processing and gathering of evidence – copies of PPC’s and Bank Guarantees etc and this will also provide a point of contact for the lawyers appointed to deal and to represent the group’s interests. The other useful side effect of this should mean where all group member’s interests are the same that the professional costs associated with running and progressing such a group action should be proportionately less than those incurred in an action taken by a lone party.
 
It’s worth stressing that no one can foretell the likely outcome of such actions or the reaction of the relevant bank or developer but we are all faced with the same imperatives and striving for acceptable solutions must be a priority.
 
 
© Mark FR Wilkins (Marbella) 2008
 
Mark FR Wilkins,
The Rights Group
mark@therightsgroup.com

This article was emailed to Brianmags from Spain in the last few days. It appears to back up the SARC I WANT MY HOUSE STRATERGY.  I Urge all purchasers without Bgs to push for their property as

Tony R17 18

 




Like 0

Spam post or Abuse? Please let us know

24 Nov 2008 9:22 PM by julie anne Star rating. 1103 forum posts Send private message

Not quite the same situation as SJ/HdT I  think things have gone a couple of steps too far for this to be of any help .

SARC has not started anything this idea has been tried and tested on numerous developments but much earlier in the proceedings than concurso a bit too late now I'm afraid .May have been possible if SJ/HdT had been more honest with purchasers earlier .
 



This message was last edited by julie anne on 11/24/2008.


Like 0

Spam post or Abuse? Please let us know

24 Nov 2008 10:09 PM by julie anne Star rating. 1103 forum posts Send private message

Sorry to burst your bubble Tony but just a  few key points from your previous post that don’t stand up in the case of SADM  Sorry I think once again you missed some key points that would mean your plan won't work .

 

The building seems close to being completed

I don’t think so

 

He banked – as he was required to do by the financing bank - all of the purchaser’s deposit monies in support of his mortgage finance to complete the build

I don’t think this happened

 

The first phase of the development is complete – fully licensed but also standing empty

I don’t think so

 

Some banks, who may have financed the development from the start - and who have given off plan purchasers the all important bank guarantees

Not many of them unfortunately

 

Rather than causing the developer to enter into Administrative Receivership and then having to deal with an Administrator with little or no experience of the property market,

Eh! They already have!

 

the financing bank may be willing to compromise with developer by taking the property into their control and writing off the debt to the bank.

What property would that be, it has not been built yet !

 

This means that the bank become an estate agent and is keen to make sales of the unsold units

Which unsold units would that be there are no fully completed unsold units for the bank to become estate agent of!

 

 

Firstly, it may be appropriate, in relevant circumstances, to consider calling on the Bank Guarantee. If the facts of your case allow you to demand that the granting bank honours their guarantee to you this may be the most expedient way for you to recover your deposit and stage payments.

 

This part should be true but as we all know is proving to be anything but expedient in the case of SJ/HdT

 

Sounded good Tony but as usual misinterpreted Tosh

 


 



This message was last edited by julie anne on 11/24/2008.


Like 0

Spam post or Abuse? Please let us know

25 Nov 2008 7:08 AM by martinbrothers Star rating in Worcestershire. 278 forum posts Send private message

Hi Tony, in addition to JA,s valid comments,  this article relates to dealing as a Group action, through  one Lawyer to spread the costs and negotiating direct with the Bank.  You are trying to deal direct with the Builder in Administration who have no autonomy or authority to do either.  Or am I completely mad?

Sal and please correct me if im mistaken.



_______________________

Sal



Like 0

Spam post or Abuse? Please let us know

25 Nov 2008 7:22 AM by joanie666 Star rating. 231 forum posts Send private message

 No sal you are right. Tony is talking complete s***e yet again. Tony do yourself  a favour and retain an ounce of dignity whilst you still can.

 

No houses exist!!!!!!!!!!!!!!!! Which is fairly significant




Like 0

Spam post or Abuse? Please let us know

25 Nov 2008 8:08 PM by julie anne Star rating. 1103 forum posts Send private message

What's wrong Tony you very very busy again ?




Like 0

Spam post or Abuse? Please let us know

25 Nov 2008 11:42 PM by joanie666 Star rating. 231 forum posts Send private message

 talking s***e can be very draining. he probably needed to lie down!




Like 0

Spam post or Abuse? Please let us know

26 Nov 2008 8:44 AM by twigit Star rating in near yon ousing esta.... 162 forum posts Send private message

 

Just setting off down the mountain for me morning dose a churros n chocolate but before I go, can I once again ask folk to stop talking about the WAR!!

Oh! and can I kindly ask that intemperate language is avoided as it mekes them using it sound as if they’ve never been to skool.

In future I think it’s best if.............

twigit
 




Like 0

Spam post or Abuse? Please let us know

26 Nov 2008 8:52 PM by julie anne Star rating. 1103 forum posts Send private message

Twigit please come clean and say what your interest in this developer and situation is. If you can't do this F_ _ k off    !!!!!!! . I have read enough of your shit to last me a life time .Many of us have much bigger fish to fry and your blaze tone insults .So please  p --ss off.

I don't know about anyone else but I don't have 70 grand to piss against a brick wall and your casual non topical tone is of  no help to anyone .Many of us on here have lost a lot of money and are looking for some serious information

.Why don't you start a smelly old soldiers thread and leave people with a stake in this to get on with discussing the real issues i.e. protecting our investments!

There is a thread on the general forum entitled “jokes in here please “perhaps your sad attempts at amateur comedy would be more appreciated there. Good bye Twigit and good night !       or should I say good night Tony you saddo !

 Regards JA

 




Like 0

Spam post or Abuse? Please let us know

26 Nov 2008 10:30 PM by briando55 Star rating in Yorkshire. 1982 forum posts Send private message

I think Twigit is in need of some critical care

Now then.....who can provide that?     i wonder...........

 



_______________________

Best wishes, Brian

 



Like 0

Spam post or Abuse? Please let us know

26 Nov 2008 10:52 PM by julie anne Star rating. 1103 forum posts Send private message

I think it is now called self care , if you get my drift




Like 0

Spam post or Abuse? Please let us know

26 Nov 2008 10:52 PM by julie anne Star rating. 1103 forum posts Send private message

whoops !  posted twice


 



This message was last edited by julie anne on 11/26/2008.


Like 0

Spam post or Abuse? Please let us know

27 Nov 2008 6:55 PM by TonyMal Star rating in Oxfordshire. 1090 forum posts Send private message

Hi All,

i notice that the very nasty brigade have been making stupid postings.  I would like to point out to them that I am not twigit, he has a great sense of humour and i love his use of words but no it's not me. Any one could tell by the phrases he uses that its not me ..so..........why were you so nasty and rude to him? You sad sad people.

As for the article the fact that you still can not see the nose on the end of your face is ludicrous. Enough said

 I WANT MY HOUSE AND OTHER PEOPLE ARE COPYING IT!

Tony R17 18




Like 0

Spam post or Abuse? Please let us know

27 Nov 2008 7:16 PM by FriendinNeed Star rating. 789 forum posts Send private message

Hi Tones, you tiger.
Of course we can see it is not you.
As you say, his use of words, the phrases he uses, he can spell.
How could it be you.

 




Like 0

Spam post or Abuse? Please let us know

Pages: 1 |
Post reply   Start new thread


Previous Threads

Message for Santa - 2 posts
PETITION TO FORCE BANKS TO HONOUR BG'S - 47 posts
Weather Warning - 7 posts
Agents - 0 posts
Bank Guarantee-Money Refunded - 34 posts
Benidorm - 8 posts
AIRPORT TRANSFER - 9 posts
Very Serious Discussion. - 18 posts
An old soldier in Spain - 1 posts
brits abroad - 3 posts
San Miguel - 2 posts
testing - 4 posts
Pound against Euro hits rock bottom and keeps on digging - 6 posts
Why dont others post - 13 posts
Opinions please - 23 posts
More BULL- GIVE US A BREAK TONY - 31 posts
How Many. How Much. When - 45 posts
respect - 0 posts
SARC report - 3 posts
Article for info - 3 posts
Ghost forum - 5 posts
For anybody visiting Jumilla this week.... - 6 posts
for sale - 13 posts
SARC /TONY - 40 posts
News article - 1 posts

14 posts were found:


1 |
Our Weekly Email Digest
Name:
Email:


This site uses cookies. By continuing to browse you are agreeing to our use of cookies. More information here. x