Corvera Golf: Worrying Trends and Disparities in Rulings
Is Spanish off-plan property development dead? I would think so, considering the diverse value judges give to misleading advertising by property developers and, consequently, an increasing lack of trust in an already damaged sector.
The story goes like this:
Recently, a property developer in the north of Spain was sentenced to 21 months imprisonment for falsely advertising, on a billboard, that the urbanization he was developing would offer gardens, swimming pool and a children’s playground. Additionally, he had also indicated that the development would include adequate sewage infrastructure, water treatment plant, lighting and sidewalks…when, according to the sentencing court, he had no intention of providing such facilities.
Yes, a tough ruling by 3 tough magistrates who imposed a 21st century version of the Talion Law, exacting retribution to the defaulter in the most strict way possible, under Spanish law.
In an almost identical case by Court of First Instance in Murcia number 13, the Judge dealing with a dispute over unfinished facilities in Corvera Golf and Country Club accepted the following:
- That the construction of the promised 5-start hotel, to be run by Devere, was never started.
- That there are no, as recognized by the defendant, commercial centers, restaurants luxury hotel, health center nor a spa.
- That the promotional literature is fully binding, citing several Supreme Court rulings.
But, in stark contrast with the ruling that saw the Galician developer almost having to do time for fraud (received a suspended sentence), the Corvera Golf & Country Club developers, who had not built (and had no intention of doing so, as it happens), among others, a 5-star hotel, even though it had been offered, enjoyed a favourable ruling as the claimants’ civil claim for contractual default was dismissed.
And so, the question that remains to be answered: what is it that made this judge rule in such a manner?
Succinctly speaking, that the buyers did not prove that they had relied on the promised facilities to sign the contract! The judge adds that
“…the answer to the claim has to necessarily be negative for, on the one side, the contracts did not stipulate a deadline for building the promised amenities and, on the other, the buyer does not prove, in any way, that the concrete construction of the 5-start hotel and commercial center had, when exchanging contracts, such an intense relevance that it would justify pulling out the transaction should the amenities not be built…in fact, the golf course was indeed completed and the construction of such element was, as evidenced, the only element that was contractually agreed to.”
And to further justify his anomalous decision, he supported the developer’s argument that the 4th phase had not been completed, by which time presumably the hotel and other amenities would have been finished. What he did not feel relevant was the fact that Corvera developers had previously undertaken to the following, in respect to Phase IV:
“By reference to the main plot number 3832 Corvera Golf & Country Club reserves its rights for a period no less than 100 YEARS, to build the FOURTH PHASE of the community, which entails, in the event of this happening within the stipulated time, the proportional redistribution of the service charges being paid by other phases within the community.
Your honour, 100 years seems an awful lot of time to wait for the 5-star hotel, would you not agree?
An appeal has already been lodged.
hello Antonio
please can you tell me the date when the Corvera case in the Court of First Instance, Murcia No 13 was heard?
Hello Noreen,
I will ask my colleague Luis Gonzalez to reply to this petition as he is in charge of the file.
Thanks
Hello Noreen,
The ruling was from October 13th 2012.
I bought a property on phase 4 and paid a substantial deposit. I must be the only person not to receive a bank guarantee on this development. After hearing nothing for years I contacted them last year and Pablo offered me apartments on an earlier phase. I refused this for obvious reasons and am far from happy about the ruling from this judge. Do I throw good money after bad? By going to litigation or do I walk away
i have read reports that ownership of the Corvera development has changed. How does this affect people who had not completed on their purchases, or the above mentioned appeal?
Matilda, Mark,
Some Judges are ruling in favour of claimants and others against. Currently, I would say that there is a 50% chance of getting a ruling in either direction (in our professional opinion).
I am not aware of the ownership of Corvera changing.
Hi Antonio,
Could you please let me know what is happening
about corvera golf court hearing case result
Thank you
Mchitroda
hello Antonio 19/03/2014
Could you please let me know what is result of corvera golf
court of first instance number 11 of murcia
Thank you
m chitroda
hello Antonio
can you please tell me if there have been any successful court cases in 2013 and 2014 against corvera golf for misrepresentation of facilities? If so, can you tell me the names of the parties so that i can check them online?
many thanks for any help at all that you can offer?
kind regards
Hi Noreen,
Most of the rulings in this matter have been resolved in favour of the developer (sabe for one that we know of). Unfortunately, Courts in Murcia, unlike here, do not consider that a 5 star hotel, Spa, indoor pool, commercial area, medical centre, restaurant -that was never built- is enough to instigate a contract default action.
thank you Antonio. Do all the courts in Murcia find in favour of the developer, including the Supreme and Appeal Courts? Or is it just the lower courts that find in favour of the developer? Many thanks for any help you can give.
A judgement has been found against buyers who refused to complete on Corvera, due to lack of facilities and because the judge said they signed a loyalty agreement – which has the extension of agreement to accept delays on construction, plus a free furniture pack and facilities card for non existent facilities. The judge found in favour of the developer – no refund of deposit, with judgement to complete the contract to buy – even though the facilities are not there – no hotel, no PGA etc. How can a developer publicise facilities, entrap people to sign for facilities that were never going to be built and a court say that is correct? How would another court find in the favour of consumers under EU Law?
@noreen
it seems that in one part of the country, a developer can be punished for mis-representation and in Murcia, courts, not so! The EU law for mal-publicity does not apply here? One wonders why that is. Corvera publicised and promised so much luxury, hence the high prices paid to buy into that – but they did not even have a contract with DeVerre – so the whole publicity and plan, was NEVER going to produce a hotel – buyers have to prove the where buying to have such facilities, not just an very over priced apartment…..clearly all those who bought here, were either incredibly stupid or duped with promises not mentioned on any contract. so, why did they publish and promise the branding and not deliver but get away with it? VERY damaging to the economy in Spain, plus the the name of developers who ARE honest…..Spain’s trade was to attract foreigners.
Is everyone out or just very silent? The prospects of Corvera do not look too rosy….why would you put an airport in a random village if you were not expecting VIPs from across the globe? promise of 5* = tourism = investment = price hikes = more taxes for Gov and local municipality….now, no facilities, no airport, no VIPs, no Golfing, no tourism, no taxes. no profits and why? Developers made their money and left the debris with the communities who happen to be mostly foreigners, with mostly debt and problems…..which will not get better.
Congratulations to the courts, the developers and agents, who have killed their own future and economy….sadly, buyers who will never set foot in Spain again. Promises built on deceit and lies that will have lasting effect on Spain’s economy and those who have lost everything. What a mess? And an EU government who will not step in to see sense…..wonder why.
We paid substantial deposits on phase 3 part 2 back in 2007 it is my understanding that permissions for this phase were never applied for at the town hall. Never heard a word from developers for years. We have bank guarantees. What do you think are our chances of getting our deposits back through courts?
Hi. We spoke many years ago regarding the above development in Murcia.
I purchased 6 apartments, investing €400,000.
I took a court case against Corvera golf & country club and the bank thst guaranteed the deposits. I lost the case and did not appeal. It was approximately 2012/2013.
Is there an avenue open to me to take a new case/appeal against the banks now?
Regards.