Development 2 YEARS behind schedule!

Hi All, everyone has been so helpful with my queries about the Lorca development, so I'm asking your advice again!

 To recap, I put a deposit on an apartment at Lorca Golf in Jan '06.  Developer's forecasted completion date was Dec '07 - Jan '08.  It was only ever an investment purchase.  I was clear with the developers and with MRI that I intended to sell on before completion, and the approriate clause is in my contract.  MRI has singularly failed to provide me with the regular updates they promised (chocolate teapot syndrome in spades) and I have been really pushing them because I wanted their view on the market slow down and advice on the best time to market the property.  Anyway, they have emailed today and say that the golf licence is in place and the building licence will be given immediately.  Whilst I suppose this is good news and I know this is manyana Spain, the completion date for phase 1, IF they start buiding by the Summer, is now around March 2009.  Is this usual/acceptable?  Or is the developer liable in any way?

All advice gratefully received!

Ta,

Dixie

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Hi Dixie,  I sympathise with your plight.  We placed our deposit in March 2004 for completion November 2005.  Not too unrealistsic, another relative's off-plan took around that time to complete, so we assumed - wrongly  - that it was reasonable.  As with you, building did not start for years.  We hope to be completing on it next month or May, but still have nothing official.  It was agreed that the contract could be sold on, but when we found a buyer, the developer just refused point blank to allow us to sell the contract.  Nothing our solicitor could do.  Our only recourse was to take them to court.  Apart from the risk of the additional expense, the risk of the unknown Spanish legal system - see other threads on EOS, and the certainty that we would not recoup our own money in full, it is just too stressful to contemplate. 

Contact Maria deCastro through EOS.. She is so knowledgable and has posted many times on this situation or similar .  I wish I'd known about her, and this forum, before our situation got to the point of no return.  I wish you luck.

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Hi Jane, that's a really worrying story. I guess in my situation I'm looking at a 3 year process too. The developer (or their sales guy) has written in an email that I am at liberty to sell on at any stage, and that's also in my contract and indeed in all their sales literature.  Even so, it sounds as though they could go back on it. My contract says if the building licence isn't granted by 30 Sept this year I can withdraw.  Are these contracts worth the paper they're written on??

Anyway, I'll keep fingers crossed that you do complete soon.

Thanks for your comments.

Dixie

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Hi Dixie, sadly the contracts are worth diddly squat to us.  They protect the developer.  In front of me I have the letter from our developer dated the 25th November 2005, which offers us withdrawal from the contract due to their delays.   We accepted the offer through our solicitor.  Then followed 9 months of stalling - until the developer pronounced that they would not proceed with their offer as the property was built.  By then the shell was up.  Now, another 7 months later, we still do not have the house.  Buying property is always a risk, but my advice from our experience in this type of situation is get out as soon as you can.  They have empty promises and we have no support.  Please contact Maria if you can.  Her advice is invaluable, and she really does understand the problems.  Best wishes.

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Thanks again.  I have sent an email to Maria so I hope she can offer some advice.  I am also filing a formal complaint to MRI and the lawyers, as both agreed to keep me informed about the development and both failed to do so.  Probably won't do any good, but at least I'll feel better if I tell them exactly what I think of them!  Any news yet on your completion?

Best wishes,

Ann

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