28 May 2009 3:38 PM:

 AndooM,

I heard the same story about MRI. It might be worth checking that the value of the equity they are offering is genuine and that it is not derived from some inflated value of the property they are trying to get you to now buy into.  As a developer, if MRI also act  as the sales agent they can no longer be considered as impartial, so, do your research.

Julian

Community thread: anyone who has walked away recieved a letter from prodinal lawyer

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14 May 2009 10:43 PM:

 Tiamaria,

Not sure, but I am checking this out as I write.

One thing is for sure, in the good old days of boom, there was little stress-testing of these agreements as the developers could simply sell the abandoned apartment to the next purchaser. Now that they cannot do that so easily they are going for the next easiest option which is to reel in the fish that is on the hook, but to do so they have to go to court.

I'll try and report back in public, but aware that some of the finding may best be conveyed under PM's.

Thanks,  Julian

Community thread: anyone who has walked away recieved a letter from prodinal lawyer

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13 May 2009 10:47 AM:

Indeed.

Several people I know who are seriously considering legal action have been asked to provide brochures, adverts, and any other significant materials that they relied on when entering into the Private Purchase Agreement.  It's all admissible.

On another note, I understand that in Spanish Law a director cannot simply walk away from their fiduciary duties, and set up under another company name.  I will be checking this out in great detail over the next few days.

Julian

Community thread: Group Meeting in the UK?

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12 May 2009 10:20 PM:

That would give you some kind of case against the real estate agent, but not the developer, and it's the developer that's got your money.  Don't get me wrong, here, I know plenty of people that will be suing their sales agent.  I don't know that will get them very far, but I guess it could make them feel better.

Of more interest, is where the real estate agent has also acted as developer, and I think we all know of a good example of that ..........

Of course, in my previous entry I was referring to serious non-delivery of infrastructure, for example a fully functional golf course, and anything else promised to ensure that an apartment could actually be rented out and/or lived in.

On a further note, I also know of many people planning to take their lawyers to task on failing to properly advise them regarding the Private Purchase Agreement. Again, this may be futile as I doubt whether the lawyers would have enough insurance cover to make amends were such action to be successfully prosecuted.

 

Community thread: Group Meeting in the UK?

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12 May 2009 4:35 PM:

 Lisa,

I am up for joining in any group action, and agree that a public forum is probably not the best place in which to exchange the information.

I have been working hard on my particular case and would like to contribute that to the group.  On a more general note, in Spanish law anything you materially rely on going into a contract is admissable evidence, including brochures, adverts, noted conversations, meeting notes, other marketing colateral, AND, interestingly enough,  representations made by appointed sales agents ........... and, apparently, some Spanish courts are now finding in favour of owners who have been subject to some of the more outrageous statement made by developers' agents.

On an even wider note, Since 2007 European Law has taken a stronger stance in favour of the Consumer, and in particular there is good cross-border protection against misleading acts and aggressive commercial practices all bound up in EU Consumer Protection. What does that mean for all of us, well, probably not a lot, but it should make any developer think twice about any legal or counter-legal action, as no developer would want the spectre of justifying their tough practices in an EU Consumers court of law.

Julian

Community thread: Group Meeting in the UK?

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