07 Sep 2008 4:16 AM:

Wow, i´m so suprised that a solicitor relesed funds without  some letter from the bank stating that they are holding Huma´s assets to be able to issue a BG, They had 3 different banks doing it (one after another), so as a guess they was running out of capital and hence no BG on second payment. You must have seen bank signs outside building sites, thats the bank to ask. Remember, BG are not automatically given, it is not law too either, they only have to offer one and its up to you to pursue. Taking a BG from a builder puts his assets at risk, yes you pay 30% for the house to be built, but the builer will have to give up a lot more ie. land, cash and property to cover them.

A simple and sure way to find out if there are any problems with a property you want to buy, ask the developer which bank they are using, a good company will never spend their own money or yours to build the property which is for sale, they will take individual motgages on the plots, this is a stepping stone pratice. The builder can effectively build with a fraction of using its own fund, they will still want 30% (this buys their next project & pay agents commission), but by asking their bank if there is a mortage on your selected plot, you know everything is in place and legal, this can save you thousands of pounds, firstly you don´t have to pay a solicitor to do initial checks too find its illegal (waste of .5 to 1% of value of property) and you can´t buy it and secondly, that mortgage will be transferable and again this will take out the 1% set up fee (you may even get a better rate).  (you will still need a solicitor for contract and notary)

The Spanish system is not flawed, its pretty good, but always rememeber, they are all strangers...agents, promoters, builders......people in the bar etc, 

maybe i should write a book.............i´m full of useless info


This message was last edited by lostproperties on 9/7/2008.
Community thread: DE COTTA MCKENNA AND SANTAFE LAWYERS V POLARIS WORLD

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31 Aug 2008 12:18 AM:

As I understood the set up at ACC, Parador are the promotor, Huma the builder. Parador Spain got the exclusive of selling ACC, no matter the agent you used (parador got a % on all sales). Parador took over the running of the sales side way back, but was not the first company, another was dropped by Huma due to lack of sales. For instance, everyone who worked at the site, beside a few worked and was employed by Parador Spain. Parador was not just an Agent introducing you to Huma. Huma wouldn´t have the assets to provide all the bank guarantees on the proposed project. Bank guarantees are placed against a companies assets, hence Paradors increased involvement. If not, they would of washed their hands of it long ago.

Hence, if your going to take anyone to court, Parador Spain is responsible for marketing a product illegally as no permissions were given at anytime and they would of had full knowledge.

Its never been a hidden fact and anyone who asked the local townhall would of been told that building permission had not been granted, 2nd stage licence etc.....is like buying a car that had not gone through crash testing.

Community thread: DE COTTA MCKENNA AND SANTAFE LAWYERS V POLARIS WORLD

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