Completing on new property when developer has gone bankrupt

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21 May 2007 00:00 by valerie Star rating. 4 posts Send private message

We need advice on completing on a new property at Sierra de Yeguas when the developer has left the development and gone bankrupt.

We are being pressured to complete our purchase or loose our deposit. We have been told that the development is finished and has a habitation licence, however our house was supposed to contain all white goods, light fittings etc and all these together with the kitchen units themselves have been removed from the property and we are being told that these will be re-installed when we have fully paid for the house. The communal swimming pool needs finishing and filling with water. We are most concerned that with the developer going into receivership that none of this will be attended to and that there will be no one to attend to any snagging requirements or in fact any major constructional defects that may arise in the future. We have asked to have our deposit refunded and have been told by the agents to complete otherwise it will be handed over to the receiver and we will loose our deposit. Can anyone advise please. Valerie 





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22 May 2007 09:22 by EOS Team Star rating in In Spain of course!. 4017 posts Send private message

EOS Team´s avatar
Hi Valerie

I truly sympathise with your situation.  It's not a pleasant one to be in.  I am aware of a development very near to us that had exactly the same problem as you are having.  The buyers there had practically no option but to complete on their purchase or risk losing their deposits, even though their development didn't even have a licence.

Has your lawyer given you any advice? 

The thing is that as the developer has gone bankrupt the courts will seize any assets belonging to the company, that includes your apartment.  If this happens then you will have a long battle to try and get your money back.

In these circumstances it is best to complete and bite the bullet.  The developer obviously has no money, hence the bankruptcy, so it is unlikely that you will get your deposit back.  I assume as the development has it's licence of first occupation then the bank guarantee cannot be used to reclaim the deposit.

Justin


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22 May 2007 09:48 by miket Star rating in La Mairena, Elviria. 372 posts Send private message

Hi Valerie,

Justin has said it all really! You must contact an independant solicitor to try and negotiate a better position for you!
I would certainly ask for a discount from the administrators on the balance of purchase price to cover the cost of any missing fittings stated in your contract. The administrators have a duty to recover as much as possible on behalf of the creditors and should you not complete they would probably need to offer the property at a much discounted price to sell it on quickly?
What you would be requesting is more than reasonable and I'm sure Maria Castro the solicitor who writes for Eyeonspain would fight your cause?

Don't let them walk all over you and good luck!...................

_______________________

Mike T






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