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  1. #1
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    Default forced complete

    hello how can a developer force someone to complete can they do this codigo civil 1.504 and is this somthing that happens, because if people pull out why is this code not enforced, or are the developer happey to take all the deposite thanks sky

  2. #2
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    Dear Sir,

    Of course. Developers can force you to complete on a property which has attained a Licence of First Occupation (aka LFO) (fully legal) as per Art. 1504 of the Spanish Civil Code. This is known as "Forced Completion". They will compell you to complete before a Spanish Notary Public on a certain day and time by means of recorded delivery (i.e. "burofax") to the address you provided in the Private Purchase Contract (PPC), normally your appointed conveyance lawyer's office.

    Forced completion is also covered in my article on avoiding off-the-plan pitfalls (specifically read point five):

    Buying Property In Spain Tips Part II. Off-Plan Property - 18th April 2010

    Failure to do so will result in them not only withholding the deposits as laid out in the PPC but more importantly also they will now be free to take legal action against you for breach of contract as you failed to complete.

    It's up to them to decide on whether it's worthwhile or not to pursue legal action against you even in your home country as its a fairly protracted and drawn-out process. Some do, some don't. But they certainly can if they want to. My recommendation is you seek legalk advice from a UK solicitor on the details of sucha procedure and -legal- ways to counter it.

    It is something that quite definitely does happen.

    Please read real life's example of developer's threat to complete:

    http://www.eyeonspain.com/forums/posts-long-7277.aspx

    http://www.eyeonspain.com/forums/posts-long-8175.aspx

    http://www.eyeonspain.com/community-...ompletion.aspx

    http://www.eyeonspain.com/community-...-to-court.aspx

    http://www.eyeonspain.com/forums/posts-long-10797.aspx

    Even developer's under Judicial Admnistration can force you to complete once the LFO is attained. The fact they are under an Insolvency procedure does not stop them legally from being able to compel you to complete ex Art's 1124 and 1504 of the SCC.

    Developers on attaining a Spanish ruling which is final (meaning it cannot be appealed in Spain) can execute it against your UK assets following EU Directive 44/2001 which is applicable to all EU members, and that includes of course the UK and the ROI. In fact as it's a two-way street our law firm has set-up a legal service whereby we act on behalf of UK creditors wishing to seize debtor's assets located in Spain:

    Recognition and Enforcement of Foreign Court Rulings



    Examples of legal queries we've received over the years on the matter of forced completion:

    Can our builder sue us and force us to complete after keeping our deposit?
    Andrew

    chased to complete
    abo07

    Can a Spanish Developer force us to sell our house in the UK?

    Lynne

    What remedies does a developer have to enforce completion
    Unregistered

    Will i lose my uk home
    Unregistered

    If we fail to pay our stage payments, can a developer sue us in England?
    Simom


    Yours faithfully,
    Raymundo LarraĆ*n Nesbitt
    Last edited by Lawbird Lawyer; 06-04-2010 at 05:17 PM.

  3. #3
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    thank you for your reply as I can not pay the balance due to slow down in my work is it best for me to cancel the contract and ask for half the deposit back by offical letter by notary or is is it best for me to wait for forced completion by the developer as Iwill be paying more money to terminate the contract regards sky

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    Quote Originally Posted by Unregistered View Post
    thank you for your reply as I can not pay the balance due to slow down in my work is it best for me to cancel the contract and ask for half the deposit back by offical letter by notary or is is it best for me to wait for forced completion by the developer as Iwill be paying more money to terminate the contract regards sky
    Judging from your last post Sky I believe you have not understood my reply.

    If you wait for the developer to notify you formally he will then be able -additionally- to sue you and demand that you complete on the property as per the PPC. In which case he will probably withhold the full deposit, not only the 50% as per your PPC from what you write. To opt out and recover at least the 50% of your deposits you have to do it before he notifies you formally. That is why the granting of a LFO is also so important for this very matter.

    Cancelling a contract requires you appoint a lawyer, this is not something you can do on your own.
    Last edited by Lawbird Lawyer; 12-02-2008 at 04:38 PM.

  5. #5
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    Default Who is responsible for community fees

    Can you advise who is responsible for community fees for apartments where investors have paid a 30% or more deposit but not completed the purchase? Does the responsibility belong to the owner or the developer and are they liable for the community fees from the time the FOL was issued (i.e. when the apartment would have been ready for occupation)

    Many thanks

    BB





















    Quote Originally Posted by Lawbird Lawyer View Post
    Dear Sir,

    Of course. Developers can force you to complete on a property which has a Licence of First Occupation (aka LFO) already granted (fully legal) as per art 1504 of the Spanish Civil Code. They will compell you to complete before a Notary Public on a certain day and time by means of a burofax to the address provided in the PPC.

    Failure to do so will result in them not only withholding the deposits as laid out in the PPC but more importantly also they will now be free to take legal action against you for breach of contract as you failed to complete.

    It's up to them to decide if it's worthwhile or not to pursue legal action against you even in your home country. Some do some don't.

    It is something that quite definitely does happen.

    Please read real life's example of developer's threat to complete:

    http://www.eyeonspain.com/forums/posts-long-7277.aspx

    http://www.eyeonspain.com/forums/posts-long-8175.aspx

    http://www.eyeonspain.com/community-...ompletion.aspx

    Yours faithfully,
    Raymundo LarraĆ*n Nesbitt

  6. #6
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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 LarraĆ*n Nesbitt
    Last edited by Lawbird Lawyer; 02-25-2010 at 02:26 PM.

  7. #7
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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.

  8. #8
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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 LarraĆ*n Nesbitt

  9. #9
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    Default No Bank Guarantee

    At the initial meeting with our lawyer when we paid our deposit for a 'flipped' property our lawyer repeatedly told us that our money was safe. He smiled indulgently at my repeated questions regarding the security of our funds and kept telling us there was nothing to worry about and in any case the Bank Guarantee would ensure our money was safe. He explained how the Bank Guarantee worked and even offered scenarios in which we might have to claim if anything should go wrong. They also asked us ti give them power of attorney for the purchase of the property as this would mean we would not have to travel back and forth from Spain to sign the contract etc.,
    Tired of waiting almost four years for completion and after repeatedly asking our lawyer to seek the return of our deposit under the terms of the 'Bank Guarantee', (to which their repeated reply was that it would involve a very expensive court case because the bank said, ' Only when a judge says we must pay back the money will we return it to the purchasers') we decided to change lawyers.
    When we received our file from them there was no Bank Guarantee. I asked them if they had misplaced it and their reply was, 'The developer failed to do his duty and supply one'.
    My Questions.
    1.Should I sue the lawyers for gross negligence??
    2. What do you think would be the outcome?
    3. What would be the approximate cost.
    4. Where would I find another lawyer with the ability to do this?
    5. Would I get back my deposits and also the money that I paid the lawyer for a) Power of attorney ,b) conveyancing services, plus interest and damages?

    Thank you.

  10. #10
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    Default No Bank Guarantee.........Again!!

    I guess you don't have the answers and cannot help me.
    Or perhaps you do not have the stomach to sue a fellow lawyer. Whatever the reason....Thanks.

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