Hi

I would send the contract to your conveyancing lawyer for his interpretation. In most contracts there is a force Majeure clause, and usually examples of what could be considered force majeure, how long of an extension the developer can have due to the stated force majeure.

Kindest regards
Debbie

Hi. The promoter did not offer any incentive for us to complete - probably because this was the first phase of the development to come on line and perhaps they saw it as a 'one off' - but I cannot say for sure. They tried really hard to sell a furniture package prior to our decision, which was way over priced but could never answer my queries on the potential of the rental market - hence my visit to the site and to see agents out in Bucharest.

There was a clause in our contract too that allowed for delay due to exceptional circumstances and they used that clause- and provided the necessary 'met office' documentation to support the delay. Our solicitors at the time accepted this because the documentation was provided.

Happy to answer anything further that helps you.

I am not sure I can trust my conveyancing lawyer. I get the impression they are good at processing, but are not really good or keen on fighting when the things get tough.

What kind of numbers did you do to make the decission? What kind of rent if any you guessed you could get and how different was the market price of what you were paying?

I have not been there but I have been talking to people there and doing online research. my impression is that the market price is somewhere below the total price I am paying, but still above what I owe. In that case it may be worth completing. I am only scared about 1)being able to rent it later and 2) the possibility of a East European crises like the 1996 Asian crises, that will bring the value of my investment in Euros to half of what is ti right now.

Hi Hovis10,

Did you have a clause in your contract that allowed you to walk away?

Was there any threat of the developer pursuing you for the full amount?

Hi

There is too much detail for me to put this into a post - if you want me to email you separately or privately then if you can give me some details I'll come back to you with everything that I had. I would however urge you to seek alternative opintion too - even visit for yourself to see the site and talk to different people. That way it does help to either put your mind at ease or just raise more queries - all of which has to help.

thanks

Hi

there was a clause in the contract that broadly said that if I failed to pay the final installment (the final 70%) that the developer would retain all deposit funds and would terminate the contract. I also understood that they would not be pursuing me/suing me for that final amount. I clarified this with the lawyers before taking the decision and I have since had the final letter from the developer advising that they have terminated the contract due to my 'non fulfillment of the contract obligations' - which of course I knew I was doing. I think you have to go through the contract in detail to give clarity to yourselves and check out legally, as I'm not sure if the contracts have changed over the phased developments.

Hope this helps again

How can I e-mail you directly?

You can't. It is against the Forum T&Cs to protect our members and ourselves.

We pulled out of a purchase on Greenfields. Too expensive, poor quality build, too stressful. I just wish I could get back the money we paid for furniture package ...

hi I hadn't read the Terms and conditions for this site for a while so I understand that making contact outside of this forum is not permissable.

I took account of all:

Notarisation fees
legal fees to bring the property into ownership
set up costs to bring the property into usage - furniture package, costs to estate agent for the first year including all commission on the rent and services, first tenancy search and find, maintenance of the property, tax return fees at year end etc.
Potential rental yield (having spoken with both optimistic and pessimistic agents)
installing air conditioning (which everyone was recommending)
Set up fees for the mortgage, ongoing mortgage payments (including rate changes after promotional period). Property insurance. Connecting to utilities fee etc, Bank valuation fee
Exit costs from the mortgage and any redemption penalty.
Projected value at sale in 3 and 5 years
Projected Capital Gains Tax


There were other things but all of the above were key for me. All in all, it was clear I was in negative cash/capital flow from day one (which was not a surprise to me but not to the extent that was starting to come through. I would have also looked differently at the purchase if the price thresholds for purchase and sale of the property looked more favourably than they looked then and might have also looked for the future - I was always looking ahead to 3-5 years.) but then we are all gazing into the crystal ball!

It was not until I went out to see the site again, talked to the lawyers and different agents and advisers, that I was able to review this purchase and bring all of the information together. Again, everyone's position and needs for doing this is different so you do really have to gather what you need to know. My best bit of advice is to speak to the optimists and the pessimists so that you can realistically and logically come to your own decision - because it has to be right for you.

Hope this helps once more.

Thanks