One of my main reasons for investing in this development was that PS informed us that there was the option to re-assign your contract should you wish to before the end of completion. In this way to 'flip' the contract and providing an alternative exit strategy. I always seek mutiple exit strategies.

I have been trying to do this for the last 2 months, but have been informed by the lawyers (who seems to be working hard on the matter) that the developer has refused and cited no reason for refusal. Even though I am looking to sell the contract to a 1 bed flat and the developer has already sold all their 1 bed flats, so it wouldnt even be competing on the market with their remaining stock.

The most recent information from the lawyer is that there is no mention in the contract of the option to re-assign the contract and we have no rights to do so other than if the developer lets us - which they are clearly not interested to do.

I would like to ask PS - did you agree with the developer / Euriskiso to allow re-assignment of the contract as this may affect other investors in the project and can you explain why the developer is refusing to allow re-assignment?

Thank you
Andrew

I recall originally being told by PS staff that under Romanian law, a contract is flippable unless there is a clause in it specifically saying otherwise. And that we can 'flip all we like'.

However it seems that some people are now having problems with certain developers. It could be that the developers are just being difficult because they can get away with it.

Very true Doug!

Can we get a PS response to this please?

Dear All

The norm in Romania is that a contract was flippable if it was not noted in the contract but you still require the permission of the developer to do so as you do not own the unit.

If you obtained permission to flip then usually the person who the contract is being reassigned to must take on all the obligations of the orginal Pre-Sales Contract, i.e. the payment schedule, cost etc.

In later contracts we noted that developers were placing clauses in regards to reassignment. These usally reflected what was stated above.

Kindest regards
Debbie

Deborah, this caveat was never mentioned in any literature prior to investors registering for these properties - ability to flip was a major promotional tool for this investment and developer acceptance was understood to be fait accompli.

There is no reason for developers to refuse to approve this if all equivalent apartments have been sold.

What leverage do you have with the developer to persuade them to approve?

Thanks
Andrew

Hi Andrew

Thank you for you comments.

As you appreciate with any contract you must always obtained the developer's permission to reassign as you are not the owner of the property. You are the future owner.

I have put a call into the local property finder and the lawyer and asked both to ascertain as to why the developer does not wish to reassign at this moment.

Kindes regards
Debbie

HI Deborah,

I have been working with the lawyer on this for 5 weeks now, and have also contacted the local agent as well as of last week, waiting to hear.

AK

Hi Andy

I have spoken to both the lawyers and the local property partners. I have been informed that no decision has been made by the developer at this moment.

Kindest regards
Debbie

Hi Andy
Thanks for raising this on the forum. I too would like to flip my apartment and understood this was possible, but was planning to wait until nearer completion.

When I visited the site in Feb this year, it was just a hole in the ground. Seems unlikely to me, that will be finished by May 09. Do you have any news re this?

Good news is that the location is very central and well thought of by locals. Think they would be easy to let out.

Please let us know how you get on.
Regards
LoriC

Andy,

If you want, I can try to help you out. I did this for a few (other) non-PS clients, and it was not a problem at all (al though it was a different developer).

Stefan