We have exchanged contracts on two apartments in Spain and do not want to complete?
We recognise that we may lose the 30% deposit that the developer has can he force us to complete?
If we don't what action can he take under Spanish law
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We have exchanged contracts on two apartments in Spain and do not want to complete?
We recognise that we may lose the 30% deposit that the developer has can he force us to complete?
If we don't what action can he take under Spanish law
Dear Sir/Madam,
Someone started a thread on this same issue a while ago. I advice you read it through:
forced complete ( 1 2)
Many purchasers on buying off plan had the mistaken idea that if things turned sour they could just walk away and forfeit their deposits or only a part of them in accordance to their Private Purchase Contract's clauses. They thought that would be the end of it without there being any ulterior consequences.
This is a sad mistake.
When you sign a Private Purchase Contract to buy property in Spain, you are making a serious commitment. The contract is binding for both parties. If you wish to pull out for no justified reason whatsoever you may find yourself being sued by the developer requesting the contract's fulfilment ex art 1124 of the Spanish Civil Code.
Some ask how can you possibly be forced to complete against your own will? Very easily, against your assets in your home country.
Not all developers will be willing to sue you for different reasons i.e. it takes long, they don't have the required litigation funds or they are satisfied withholding the deposits you paid as a penalty.
But certainly if a developer wishes to sue you on these grounds he can and the law will be on his side. Some do, some don't. It's a gamble you take and you must be fully aware of it.
Which is why one should always consider carefully if dumping a contract is indeed an option, as this may bring about very unpleasant consequences specially if you have assets elsewhere.
Yours faithfully,
Raymundo LarraĆ*n Nesbitt