Dear Sir/Madam,

We have already recieved a few queries on this development.

Hopefully your appointed lawyer is independent and is not appointed or recommended by the developer as this may cause conflicts of interest.

It is still too early to pull out and litigate.

Realistically you should at least wait 6 months as from the scheduled delivery date outlaid in your Private Purchase Contract. Please read our litigation article on the matter, specifically point one:

10 Reasons Why Your Case Against a Spanish Developer May be Thrown Out of Court - 30 Sep 2008

At least until April/May 2010 you could not pull out and litigate, successfully that is. As you can pull out before but I would not advise it.

On the matter of Spanish bank guarantees you may want to read our article:

Bank Guarantees: All That You Ever Wanted to Know but Were Afraid to Ask - 12 Nov 2008

It doesn't make much sense to sign an extension on the delivery date of the property in exchange of receiving a bank guarantee. As on doing so you will now have to wait until April/May 2011 or even more.

As per our article above, the issuance of bank guarantees is unrelated to anything. Developers are obliged under law to hand them out to off plan purchasers. Period.

If your developer is asking for an extension quite obviously he will not deliver the property in time. This could be because he may need to raise additional funds? Maybe he has to reapply for the Building Licence as the 2 years have elapsed already without anything being built.

This letter in fact may be used against him in an ensuing court case on applying for a full refund of the amounts.

If your developer is weak financially it might be a good idea to secure a bank guarantee in case he goes into administration.

The decision is up to you, it's your money.

You may want to read yet another article of ours on the matter to help make up your mind:

Is Litigation Against Spanish Developers Worthwhile? - 23 May 2008

Yours faithfully,