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  1. #21
    Senior Member
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    Dear Sir or Madam,

    The granting of the Licence of First Occupation (LFO or Habitation Certificate) is the major milestone in the off-plan conveyance process.

    As from the moment the developer attains it off-plan purchasers, regardless if they have completed or not, will be held liable for the outstanding Community fees.

    The fact they have not completed on the property is not the fault of the developer and he cannot be held liable to pay for these Community fees, unless he specifically agrees otherwise.

    Yours faithfully,
    Raymundo Larraín Nesbitt
    Last edited by Lawbird Lawyer; 02-25-2010 at 02:26 PM.

  2. #22
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    I am worried about whether these situations will apply to me. I issued a cancellation notice to a developer, who was in voluntary liquidation, over a year ago. I believe you tried to claim on a bank guarantee at the same development. However due to the delays in the court system I have not had a hearing yet. In the meantime the development is beginning to get back on track with the help of the bank and a Licence may be issued at the end of March. I'm worried that the judge might say it's finished now, so you should complete. There are many reasons that I won't be able to, but if the judge takes this approach is he likely to force completion.

  3. #23
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    Dear Sir or Madam,

    Can you expand more on the "I issued a cancellation notice to a developer".

    What does that mean?

    Did you retain a lawyer to act on your behalf, such as ourselves?

    The fact that a developer files for receivership does not equate to bankruptcy. For example, well-known developer AIFOS filed for receivership last summer. The judicially-appointed administrators are now in 2010 phoning and sending register letters to off-plan purchasers compelling them to complete on those properties which already have attained a LFO issued by a Town Hall.

    Failure to comply may result in legal action being taken against them for breach of contract as explained in this very thread even if the developer is under receivership, that will not thwart them. AIFOS was of course suing off-plan purchasers who refused to complete on new build properties (with a LFO) well before they filed for creditor protection.

    How can you be sure the developer acknowledged you cancelling the contract and accepting it? Just because you sent them a registered letter on your own does not mean the PPC is cancelled which is why it is recommendable, if not essential, to hire a litigation lawyer such as ourselves to make sure the contract is indeed cancelled and perhaps even litigate. Cancelling a contract is no guarantee that the developer will not sue you.

    If your contract has not been cancelled and time goes by, you run the risk the developer will attain the LFO in which case, in despite them being in receivership as you write, you can be forced to complete on the property (i.e. suing you for breach of contract).

    As I always advise, in Spain you just cannot walk away from a Private Purchase Contract on either a new build or resale property.- you can be sued in the UK.

    As both the UK and Spain are EU members, Spanish court rulings can be executed in the UK against UK assets in compliance with EU Directive 44/2001. In fact my law firm, Lawbird, has a specific legal service set up for it whereby we are hired by UK companies or individuals to enforce UK rulings against Spanish assets:

    Recognition and Enforcement of Foreign Court Rulings

    It's a two-way street.

    Yours faithfully,
    Raymundo Larraín Nesbitt

  4. #24
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    Patience is a virtue

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