Deposit

You should speak to your lawyer. Technically it is illegal in Spain to take a deposit without the planning approved and the licence to start construction. The reality as with most things Spanish is that many developers flout the law. I have a development close to me where they have started clearing the land and putting in the roads etc to get to the urbanisation but they do not have the Licences yet. The question is what stage are they at to cause the extended delay. You dont say "phase 2" of what and where nor what is scheduled to happen in Dec 2008 - completion? If they are saying now Dec 08 - there is every chance it will be closer to mid or late 09. Certain developers are notorious for requesting 2nd or third instalments in contravention of the law just to aid their cashflow - even on developments that might never get permissions. INsist your lawyer clarifies the situation for you and informs you of both your rights and your obligations and whether you have an escape clause (should you want it bearing in mind the amended schedule). After all you might have fixed plans regarding a move to Spain or something along those lines.

Rgds Smiley

You can ask for a revision of your contract, given the circumnstances.

María L.  de Castro

www.costaluzlawyers.es

You ideally need to discuss this with your lawyer or if you are not comfortabe with that one then Mariadecastro here on this forum has been successful in obtaining deposits returned

I understand it is illegal for the developer to charge you in the case of not taking up their mortgage, so stand your ground and obtain independant advice

Good luck