Question: I am buying a property in Spain and am having problems with the developer. The construction is not yet finished, but I was promised that it would be finished by summer last year. The property still seems to be some way off being finished. Is there anything that I can do about this?
Answer: This will very much depend on the contract that you have signed with the developer. A good contract should have penalty clauses in it which would mean that you are entitled to compensation if the property is delayed, or that you can cancel the contract can be cancelled and you can get your money back if the property is not finished on time.
This is the reason why it is better to agree at the beginning that stage payments are made according to how the construction is doing rather than on set dates – although developers will often refuse to allow such a clause in the contracts. Be careful about withholding the next stage payment as it could be argued that you are the one breaching the contract!
Is there a bank guarantee or insurance covering the stage payments you have already made?
Speak to your lawyer about your particular contract and the possible options available to you.
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