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I wish to purchase a property from MASA, In Camposol, Costa Cálida, but they refuse to guarantee all my payments. What can I do?

Property Law

Antonio Flores Vila

31st of January 2002

Q. I have just returned from an inspection visit to Camposol, Costa Calida where 4000 plus villas are being built by MASA. The saleperson told me that Bank Guarantees/Insurance Polies are NOT provided because MASA are so large and buyers do not need the guarantee. Can this be true? Your WEB answer dated 14-11-1999 says that non-compliance can result in hefty fines - how can they sell so many villas on a site and not be fined for non-compliance. Thank You.

T.Casey

    A. The verbal guarantee given to you by the salesperson is simply no good. In this country, whoever builds has to guarantee, this is a MUST, and not doing it is putting the developer as well the client on risk: the developer, subject to fines of up to 25% of the amount which should be guaranteed, and the buyer, exposed to losing the funds invested if the developer encounters financial problems.

    If the developer has not been fined so far, it may be a matter of time before they are. If it is confirmed that they do not wish to give guarantees, you may opt for one of the following:

    • Purchase another property.
    • Purchase this property accepting their conditions.
    • Purchase this property, placing a small reservation sum, and refuse to pay another penny (or Euro), corresponding to the next instalment, until such time they provide the guarantee. This, in our opinion as well as many other lawyers, is covered by article 1502 of the Civil Code. They cannot resolve the contract, and if they refuse to give bank guarantees, you could not pay anything else until completion. Some people are afraid of confronting the developer, as they believe the may retaliate against the property purchased, and not finish it off in good condition. This I have to say is highly unlikely, as it could swiftly jeopardise their reputation.


    In all cases I suggest to employ the services of a lawyer to deal with the matter, in order to ensure that all legalities are complied with if they are bound to affect you in some way.


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