Unlike the developer, buyers at Casa Toro (Álora – Málaga) can now feel relieved. Zurich Investments has decided to refund down payments paid towards their properties through the firm Lawyers of Spain (now Lawbird Legal Services) to 22 clients (after having lost a few in this rather tortouos legal itinerary to marauding ambulance-chasing lawyers who lie in ambush on legal-gossip websites).
Although the properties were correctly completed, these were on an untimely fashion and so buyers decided to pull out on grounds of delayed completion. As the Romans quite rightly used to say, pacta sunt servanda, or “pacts are to be observed”, which Zurich has applied correctly, since they provided to a collateral security in the event of the default.
One is left wondering, and to me still remains a mystery, about the situation that now unfolds: will Zurich chase the developer for repayment, or is the risk covered non-refundable? Will the developer have himself some side collateral? Presumably Zurich cannot just walk away being out of pocket for around €900,000 and allow the developer to resell the properties to third parties but then again, the developer may well argue that that Zurich paid out in breach of their contract, on grounds of insufficient delay.
I dont want to come about as frivolous, but I just can’t be bothered about who picks up the debris : I just want to jump on the AVE high speed train to Madrid to collect 22 checks for our ever-patient clients!