Today's update states that the development is now behind schedule with completion expected to be Feb 2009 and occupancy permit in Autumn 2009.
Have emailed i-PA for more details.

As i see it, the initial deal was advertised as a short 8 or 9month lead-in for a June 2008 completion, then delayed until September/ October 2008.
The last June 2008 i-PA update advised Clients to get their finance in place for Sept/Oct completion....the building work is just about finished and seems on course to meet the programme.......now there's suddenly a delay announced of an entire year? Why?

Hi Chris - I was wondering about this as well. When such delays happen it is not necessarily bad as long as you can fully understand the reason for the delay right? The update was vague and you would hope that when there is more than a 3 months delay you would get a detailed understanding of what is happening.

However, possibly the result is not too bad because investors still get growth whilst avoiding a year of negative cashflow. What do you think? Of course not a good situation if you wanted to sell this year.

Other concerns are that I have arranged mortgage already on a good 5yr fixed interest rate. Probably I have to reapply for this mortgage and incur more fees and get a worse interest rate.

also I arrange an EU card through SCF where I use their address for a 6 months but after that I was going to have to use the White Tower flat address. now I don't have an address to use for my EU card.

Same position as me...I'm going over in a few weeks to do the EU card and register it with SCF...but don't know yet how this affects the mortgage offer.
A year wouldn't be a bad thing actually....but i'd like to know the reason.

Dear Chris and Brett,

I am making enquires regarding this subject and hope to send out an update later today.

Regards Christine

Can you please confirm when it is likely that the final payment will be required. There is a big gap between February 2009 and autumn 2009? I am struggling to predict my cash flow for this and the golden brook development.

Could you not include a more useful estimated payment date on the investments page? Surely it's the most important one?

Dear All

Clients are requested to refer to their contracts for terms and conditions of payment dates. We do not receive copies of individual FPC's, therefore we will not send a blanket update as each clients situation may differ.

Final payments are usually due on completion; we send the automated mortgage reminders to clients 6 months before a completion date is due. Unfortunately some completion dates do move after these reminders go to clients, and they have agreed a mortgage.

We will keep clients informed on the completion date; we are in direct communication with the Developer, via our Partner. The latest information (as said in the update to LCS clients) is that the development is experiencing a delay in the construction.

Kind regards

Sarah-Jane

are units unusable until an occupancy permit is supplied? Is this usual practice in Czech?

"Today's update states that the development is now behind schedule with completion expected to be Feb 2009 and occupancy permit in Autumn 2009."

It sounds unreasonable for investors to be paying 6 months+ of mortgage payments for a completed unit, but have to wait for a permit before they can let it.

The payment terms just say "within 14 days of request" on my Cession contract.
Others might be different but i doubt it somehow.

The bits that interest me on my copy of the FPC are :

5.2 The expected date for the conclusion of the construction of the building and the expected date for the issuance of the final approval with regard to the use of the building is 30.6.2008. The future purchaser hereby takes into account the fact that the dates for the completion of the building and the issuance of the appropriate final approval decisions may change. The future seller hereby pledges to complete the unit at the latest within 3 months of the expected completion date and the issuance of the aforementioned final approval

This doesn't tally with the now expected building completion in Feb 09 and handover in Autumn 09, certainly more than the 3 months pledged above.

11.1This contract has been concluded for a definite period starting from the day it is signed up to 30.09.2008; if the request to conclude the unit transfer contract according to paragraph 5.1 is submitted within the aforementioned deadline, then the validity of this contract will be automatically extended until the day of the conclusion of the unit transfer contract (hereafter simply referred to as the “period of duration”).

I understand that these dates apply to everybody as they are specific to the contract signed between the Developer and Agent (which we're all party to), so is there any "blanket" advice the lawyers can glean from this?

I'd like to understand more, but the signed copy of this FPC contract is all in Czech and is different to the blank, generic English translation we were originally sent as part of the deal. Clauses have been changed, some paragraphs are longer or shorter than the English translation we were given.......so i'm not confident of referring to my copy of the contract regarding small print when it's in Czech and has been revised since I signed the Cession contract.
Part of the deal offered an English-translated contract....should we expect an updated one from the lawyers?

Hi Doug

When you received your FPC and Cessation contracts in Czech directly from the lawyers you would also have received a version in English. The English version would be a direct translation of the Czech version. There should not be any differences.

If you would like to give me the clauses that you believe have been changed from the version sent directly to you by the deal lawyers I will look at this.

Please be aware that the reason why some of the paragraphs between the English and Czech may look shorter or longer could be down to the word usage to explain certain aspects in that particular language. It does not mean that if the word count is different so is the contract.

I have asked Hoskovec's to comment on the completion date compared to the date for issuance of final approval.

If you have a mortgage offer at the moment I would strongly suggest you speak to your broker/bank. Czech is very good as sometimes the offer is valid for close to a year, but please do check this with your individual broker/bank to confirm this.

Kindest regards
Debbie

I have two simple questions about this.

- will purchasers have to pay a final payment for more than 6 months before the property is ready to rent? I am sure Chris, Doug myself and all others are operating under the same contract terms so I think some effort is required on PS part here.

- what has caused the sudden 1 year delay? We have been given a one line explanation that there are construction issues but an explanation should tell us the real reasons behind this.