adinistrative silence rule

Hi

I have been in the process of purchasing a property in Alcaucin and after the events in April of this year, with the mayor (and many others) being imprisoned for land development related corruption cases, the LFO has been somewhat delayed.

The lawyer is now presenting purchasers of this second phase, with the option of completing via the 3 month administrative silence rule.    However, I am not comfortable with this approach, particularly in light of the recent problems in Axarquia and would appreciate any "unofficial" advice anyone could provide.   I am interpreting the silence as being a little worrying in that the town hall (with its new mayor) may be investigating the background to the development a little further, prior to honouring the licence.

Many thanks for any views!!

Stephie

Hi

The Administrative Silence Rule cannot be applied to a development while the building licence is in question, I guess your development  has got a building licence, but if this is ever called into question or rescinded by the new administration, the AS rule will not stand.

After all thats been said,written and broadcast about the LFO I couldn't contemplate completeing without one.

I you do decide to complete you could allways ask that 10% of the money is withheld pending issue of the LFO, if they baulk at this what does that tell you?.

S 

Personally, I would hold back much more than 10%, say 30% or more.

Why because any builder that knows there is a problem would be happy to complete with a '10% discount' given the economic situation. 

You should be advised by an independant lawyer and I' m sure that he will say that you do not complete without the LFO...and for example you can not get connected to mains water and electric without one

Now if the builder wants you to go into occupation before the LFO, then you shoudl not pay any more money..some people do and their payments are all protected by a Bank guarantee

The property is not yours without the deeds and LFO...and if you were needing a mortgage then the banks would not lend the money without the LFO...except perhaps sometimes  if you were taking over the 'builders mortage' 

So what is good security for the banks is good security for you.....and I assume that you do not want to end up on an ITV show about probelms of ownership in Spain!!! 

Hi Jeff and Rowland

Yes all good advice

Jeff, yes 30% held back is more realistic, don't know why I posted 10%. I just wanted to make the point that people do still even now complete without an LFO(with all the information now avialable), these people are not duped or scamed but choose to do so but with money withheld.

Steve

Thank you all......Without any of this advice/informaiton available, it can be difficult to make the right decisions - and ones that are future proof (if that is possible).

I think most buyers these days are in an excellent position, in that we/they are able to learn from some of the experiences (good and bad) of those who have already been there, seen it and got the t-shirt! 

I am a speaker of spanish, and as much as that is a huge benefit, it certainly doesn't protect you from the perils of spanish ways of doing things......

Best wishes

Stephie

No first occupation license through administratice silence if the granting of the Work License´s legality is being checked... ask your lawyer to look to that specific point.

Much appreciated.  Will do Maria.

Best wishes

Stephie

Hi

Thanks again to you all for providing me with advice. 

I relayed the information, provided via this forum, to my lawyer, who had previously suggested I could complete with the Administrative Silence rule.  She now says she quite agrees with me, and that a bank would not consider a mortgage on this basis.

I thought it strange that the share of information was from me to my lawyer and not the reverse .  Should she not be providing me with the facts.............?  And why would she be advising that I could complete the purchase, and then once I had completed some background research, then be saying otherwise.....  strange?

Have a good day all..........

Stephie

Hi Steph

Perhaps she is waiting for cheque from the developer

Steve

If you are not happy with the advice and I assume that you were not, hence your search on here for information, then why not consider changing to an 'independant lawyer'!

As other complications may arise

Thanks for the advice all!!! Yes, interestingly enough, the lawyer is leaving today!

Anyway, onto a to another property purchase matter.....Does anyone have any experience/views on completing on a property with an option of paying 30% of the property price within the space of 1 to 2 years (post completion)

My concerns are that you could leave yourself quite exposed if the developer got into trouble and went bankrupt (which is more than possible these days) wouldn't the purchaser then become a debtor?  Also, who would actually OWN the property during of time.....?

I must admit to thinking it was quite an attractive proposition when someone told me about this, until I thought more about it, but may be I am becoming quite cynical!

Thanks again!

Paying like this used to be (and still is, I believe) the norm when buying an off-plan property.  Normally 10% deposit, then depending on how long the projected build is but, say, 50% by half the time.  It is important (very, very important) to ensure you have a bank guarantee for the money so that if the developer goes out of business (and, yes, that can be quite common nowadays) then you are covered.  Also, get yourself an independent lawyer who is not involved with the agent or the developer. 

Don't panic too much.  There are some very good companies out there who will help you through all the stages BUT there are some right con-artists as well.  It is difficult to choose which is which as many people have been let down by the big agents (especially those with UK home companies) and some of the very big builders have either gone bust or have been found to be fiddling the system (no planning permission, using your money to buy other land instead of paying off their existing mortgages and doing a moonlight flit when only the foundations have been done are just some of them).  The vast majority of buyers in Spain are very happy with their off-plan purchases.  It is, however, getting dodgier as the credit crunch bites so, again, do your homework very carefully.  I was bitten on my first purchase (not too badly, as it turns out, but it did take a lot of time to get it sorted and I didn't lose any money on it) and was very fortunate on my second purchase to find a fabulous builder/developer who did everything by the book.  Both my purchases were off-plan but, personally, I would now look for a resale due to the current financial climate.

I like the icons and your signature ....THANKS EVERSO FOR THIS.

However, the developer is saying that he can receive payment  post completion...........i.e. 40% of the total property cost (30% having been paid) can be paid at any time within 2 years of completing. .........doesn't it sound strange?  Or may be ther person concerned hasn't got all the info...........?  Need to ask more questions ..............

Anyway, I am pleased you have nice stories to tell!!!!!!!!!!!  

thank you