Articles
A Dream Home Abroad: Why Did Everything go so Wrong for so Many?
Ignacio Morillas-Paredes, a dual qualified Solicitor and Abogado (Spanish Lawyer) in Colman Coyle's Commercial Litigation department, explains why many purchasers of properties abroad were left with no option but to issue proceedings/litigate in the UK, in seeking to obtain redress for their losses, after having departed with their life savings to pursue their dreams.
Over a decade ago, the British fell in love with the idea of owning a property abroad; enticed by television shows featuring sunny countries, foreign property exhibitions, expensive glossy brochures, and all paid weekend breaks to see dream homes first hand. Purchasers strived to fulfil a wide range of expectations; these ranged from wanting a holiday home in a sunny destination, to acquiring a steady rental income from a sound investment, or the allure of ever rising prices and the idea of a quick profit.
Everything was wonderful for many years; purchasers were completing on properties, maybe some experienced delays or small inconveniences, but the properties were built and completions took place. The prices kept rising and the wheel kept turning. Then suddenly, the credit crunch arrived to our shores; it was not only the UK that was hit but many other countries too. The dream was over, and in the words of US leading investor, Warren Buffet, in relation to recessions, "It's only when the tide goes out that you learn who's been swimming naked". In other words, it was only then that those who had taken on excessive risk were exposed.
By way of example we are currently in a group of cases where our clients are pursuing claims for professional negligence against solicitors that sadly failed to protect our clients' interests when purchasing properties in Spain.
Some of these failures entail situations such as properties sold without planning permission or where the planning permission granted did not match the property our clients bought, purchase contracts that did not state completion dates, clauses within the contracts which were in breach of applicable consumer protection laws and European Directives.
Most cases feature the topic of Bank guarantees which were not provided to the clients in order to protect their investments. In others, the so called "off-plan" sales, the land did not belong to the seller/developer therefore there was very little chance a property could be built on the land All in all our clients were left in the unfortunate situation whereby they have parted with substantial amounts of money which have now been lost.
Now most of these Spanish developers, if these were actually proper developers, and not a company set up to "make a killing", have no financial means and the properties effectively belong to the banks. The properties have not been finished, or where they have, these properties do not resemble the properties which our clients agreed. In almost all cases action against the Spanish developer would be pointless.
If unfortunately you have suffered from similar problems, at Colman Coyle we have the expertise and language skills (where they are required) to advise you on issues connected with an overseas property purchase, or with the services of a professional, where you have been let down. In some circumstances, we may offer our clients a Conditional Fee Agreement often known as a ‘No win no fee' if the circumstances so require it.
Contact Ignacio Morillas-Paredes on 0207 704 3443 or ignacio.morillas@colmancoyle.com. Alternatively, see our specialist website for more information www.negligenceadvice.co.uk
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The Professional Negligence department represent our clients in pursuing their claims for professional negligence cases, so that their rights can be redressed.
Those claims arise as a result of a professional service rendered by a qualified professional such as, Surveyors, Architects, Solicitors, or Independent Financial Advisers (IFAs). We advise clients in connection with the possibility of bringing a claim against the professional indemnity insurers or these professionals, so that the negligent party responsible for our clients' losses can compensate our clients.
Cases for Professional Negligence especially with foreign elements tend to be very technical and complex. Expert opinion is a common factor in all these cases, equally, in many occasions a number of parties tend to be involved in the other side i.e. Mortgage advisors, Solicitors firms, agents in foreign jurisdiction, developers, or sales agents, to name just a few of them. We advise our clients as to the avenues that could be explore so that a claim in negligence could be brought.
More information is available on our specialist website www.negligenceadvice.co.uk
Author: Ignacio Morillas-Parades
Date: March 2011