08 May 2007 8:18 PM:

hi tom,

Yes we did get a bank guarantee. The matter has now been put with Maria de castro who writes on this forum and who specialises in contract law.

Yes the contract with peinsa states the completion date. Maria has now informed Peinsa by legally irrefutable means that we wish to cancel the contract. In line with Peinsa's usual practice they have so far to my knowledge ignored the letter.

We actually paid 40% plus 2000 euros initially and this in November 2005.

Legally  and by statutary law in Spain the developer should give the bank guarantee at the time of signing the contract. The guarantee should guarantee all the monies paid and interest payable if the property is not completed by the date stated. Our guarantee did not mention interest or the initial 2000 euros paid. It was not given at the time of signing the contract and took many weeks of badgering our lawyers to get it .

Because it did not include all the monies paid plus interest Peinsa in fact acted illegally and could be sued for 25% of the property value . We will get back at least the 40% that is guaranteed. We shall have to see if Peinsa act honourably and pay us back quickly all that is owed.

It would behove anyone buying in Spain to familiarise themselves with the Spanish law. By and large from my own experience and that of many other I am afraid that lawyers acting for you in your purchase can not be relied upon to look after your interests for you. At the time we bought we employed a very well known local lawyer . They did not inform us that  the bank guarantee was lacking in any way.

 

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02 Apr 2007 11:32 PM:

I am sorry that you do not understand why I am unhappy. Perhaps it would be easier if I voiced my concerns and unhappiness in the form of a list.

First to answer your question. Peinsa told my solicitor that the property should be completed by June 2008- at director level - not agents and not the girls in the sales office.

For personal reasons June 2008 is not acceptable and that would be the case even if I believed it  which i do not. I am afraid that the reality of a dusty field with a few diggers moving earth around and a few men on site and a development company that have taken at least six months to build a few showhouse does not inspire me with any confidence whatever. As I said if you compare this development with the development across the road - which was in exactlly the same state 18 months ago one could be forgiven for having some concern.

I am unhappy that peinsa appear to believe that I have made a profit. With any investment a profit is only made when one sells the investment.. It may well be that at some point in the unforseable  future someone may wish to pay the asking price for the property and I may be able to make a profit on my investment. In my view given the realityof progress to date that will be a very  long time off.  In my view no one will be paying top price for a phase one villa on a building site. and given peinsa,s woeful progress to date this will remain a building site for a very long time and a very dusty dirty building site at that .Whatever that pretty little, narrow access road through the orange groves will be like if and when true building work begins and people actually start to move into the golf union I dread to think.

The reality is that Peinsa have had my money for 18 months to date. The reality is that my contract states completion June 2007. The reality is that the only people who have made a profit off my money to date is Peinsa. The reality is both I and others when speaking to peinsa have been offered their money back. The reality is that as soon as I actually wanted it back I did not get it.The reality is that quite frankly and with what I believe good reason I do not believe a word they say.

I hope I have been able to make myself a little clearer.

 

 

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02 Apr 2007 12:00 AM:

We purchased a 3 bed roda in November 2005,It was due to complete June 2007. Due to the delay we want to cancel our contract and get our money back.. or sell on our contract. I notice that someone posting on the google forum was wanting the same thing.

However our solicitor told us that we would be unable to sell the contract on as peinsa do not allow this. We asked the solicitor to approach Peinsa and tell them that we wished to cancel the contract and receive back our money-40% deposit, which of course peinsa have had the use of for the past 18 months - they certainly have not been spending it on the site! At the time we bought, the site across the road was at the same stage of development as la tercia. Anyone who has recently visited La tercia I am sure cannot have failed to appreciate the contrast in progress.

Peinsa told our solicitor that the property should be ready June 2008. If we wanted our money back now we would lose 60% of the money paid. If we waited till June we would get it all back, but they did not understand why we wished to cancel as we had made a lot of profit! No mention of 6% interest which we understand is guaranteed by our bank guarantee.

I don,t know what you all think about this but I thought you should all know what we are dealing with here.

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