Can I claim damages for the late completion of my property in Costa Blanca, Alicante Torrevieja area?.
If you are having problems with construction delays in Spain for your new home in Alicante or other areas in the Costa Blanca like Torrevieja you can claim damages for the late completion of your property.
Unfortunately, construction delays are very frequent in Spain. The handover of properties in Spain is often postponed as construction companies do not usually comply with the deadline agreed in the sale contract. These setbacks lead to a slowed fulfillment that might be a reason for cancelling the agreement.
It is of great importance that you know the deadlines fixed by the builder, architect and developer and the different advantages or disadvantages that you would have in that situation.
It is vital before committing to a purchase of an off-plan property to have a lawyer by your side that will negotiate the terms of the building contract to include every possible scenario in the event of default. We always advise to include a penalty clause in case of delays imputable to the builder. The developer or builder will always try to protect their interests and normally they add many clauses or terms to protect themselves.
It is important to know that when building a property in Alicante or other areas like Torrevieja, right after the dwelling is finished, there are permits, documents and licenses that must be obtained. Normally, those permits that have to be granted by the city council can take up to three months in some cases to be obtained.
This is why a term after the end of the construction must be considered so the builder has enough time to finish all the paperwork so the dwelling is ready to be sold with all the legal documents and guarantees.
Many builders will give you the term when the building is finished but it is crucial to take the term “for paperwork” into consideration as it will add some more months to the handover. We will never advise a buyer to sign the deeds and make the final payment to the developer without having all the legal documents in place even though many developers will try to convince the buyer to sign the deeds and make the final payment right after the building is finished.
If the builder has missed the established deadline in the sale contract, you can cancel it. In that case, the vendor will have to refund the whole amount of money you paid so far plus interests. Otherwise, if the vendor does not do that, you can demand compensation for the damages caused by the delayed completion.
The developer must offers you bank guarantees for all the payments on account
Our property purchase service includes all of the above and also making sure that the developer offers you bank guarantees for all the payments on account. The bank guarantees are important in case that the delay is very big and in case that you need to terminate the contract and recover all the amounts paid on account to the builder.
Therefore, we advise to get legal support in order to have everything handled. Certainly, this Law Firm has experts in this type of lawful claims, and we have acquired many favourable judgements against the most important construction companies in Spain.
Here’s a breakdown of the main points regarding questions for delays:
- Penalty Clause: If the contract includes a penalty clause for delays in property handover, and the conditions for its application are clearly stated, you may have the right to claim the penalty or compensation for the agreed delay.
- Claiming Potential Rentals (Lucro Cesante):In addition to the agreed penalty clause, you’re considering claiming compensation for potential rental income you could have earned during the delay.
- Liquidation Function of Penalty Clause: The penalty clause you agreed upon serves as an advance agreement between parties on compensation for delay.
- Loss of Earnings Claims: Spanish courts have maintained that loss of earnings claims must be specific, proven, and interpreted restrictively. You would need to provide evidence of a concrete potential renter’s interest to support your claim.
- Detailed Contract Examination: To determine whether you can claim compensation as provided in the contract and for potential rental losses, it’s essential to thoroughly review the contract language and the specific events that transpired. Consulting a legal professional is recommended to help clarify your rights and options.
Remember, legal matters can be complex and vary depending on the jurisdiction, agreement wording, and specific circumstances. Always seek advice from a qualified attorney who specializes in real estate law or contract law in Spain to get accurate guidance regarding your situation, every consultation is free.
CC Lawyers Alicante is your trusted law firm in the Alicante area.
Please contact us if you have any legal matter that needs to be checked by a Lawyer in Alicante.