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- 28/04/2010
- Termination of Purchase/Sale Contract in Zurgena (Almeria). Law Firm Spain. The Cancellation of the Building Works on a Site by the Autonomous Community of Andalusia must not affect the Purchaser, as claimed by the Developers.
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28/04/2010
Termination of Purchase/Sale Contract in Zurgena (Almeria). Law Firm Spain. The Cancellation of the Building Works on a Site by the Autonomous Community of Andalusia must not affect the Purchaser, as claimed by the Developers.
The First Instance Court Nº 7 in Murcia, entered judgment in favor of our clients awarding their right to terminate their purchase contract, which they had entered for a property in Zurgena, Almeria. The Judge has ordered the Developers to hand over the money, plus interests and legal expenses.
Both parties had entered a purchase/sale private contract with a completion term of 2 years. However, on their process to obtain the Licenses from the Autonomous Community of Andalusia; the authorities stopped issuing Licenses. Therefore, this implied the Developers were not able to start the building works.
After a few months, the Developers started the building works without the permits, which we consider it was illegal. This brought the Police to get involved and criminal charges against them, which is still ongoing.
Having waited years from the date of supposed completion, and due to the fact that our clients were not sure of the property ever being completed; they decided to contact our Law Firm for legal advice to stand for their rights.
While the Developers sustained not being liable of the issues occurred, blaming the Autonomous Community of Andalusia for stopping their building project in Zurgena; our Spanish Lawyers, as well as the Court, considered that the stop of some sites in the Zurgena area by the Community of Andalusia was not the purchaser´s responsibility, but the Developers’ as they were to take over the risk as a professional building company.
The Judge must have based his decision on the number of the High Courts´ Jurisprudence and Doctrine on the subject matter. Developers are part of the building sector, and as such, they must take over the risks of their activity; and not make their clients liable of them.
Should a Developing Company accept the risk of entering contracts with the purchasers, complying with terms and taking purchaser´s monies; they must also take over the risk of any setbacks that may occur. Therefore, they must be responsible of any problems on obtaining duly Building Licenses or the stop of any development projects.
Our Spanish Law Firm confirms that a Development Company can only commit to any time terms when there is already Building Licenses. Only then, they would be able to comply with their own due dates. However, these developers committed to comply with some terms, when they should not have, as they were subject to third parties; who can delay the start of building works. Therefore, only the Developers must be responsible of their actions.
The Court criticizes the Developers, as they kept stating they had not breached the contract, as they not only exceeded the agreed due dates, but also as the building works were on a standby, they did not know when the works were going to start again. So, the client could not be stranded on such uncertainty and insecurity.
The purchaser had complied with his part of the contract, which was the payment, while the vendor had not complied with his. For all of the above reasons stated, the Developer was found liable and was ordered to the reimbursement of the clients´ deposit, interest and legal fees.
Should you require further information on this subject matter, please do not hesitate to contact our Spanish Law Firm.
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