From the CBN
Two clients have won a court battle against Murcia building company Procobar, which is part of Grupo MASA.
Peter R. and Frances M. had bought two properties off plan at the Sierra Golf resort near Balsicas, Torre Pacheco.
However the properties were not completed on time.
According to the court sentence the builder had broken the contract as he had not respected the terms of the agreement by finishing on the agreed date.
As such the clients had the right to have their money returned.
The builder was ordered to return the 123,050 euros plus interest to the buyers last year.
Procobar appealed to the regional Supreme Court but a judge confirmed the sentence this week and rejected the appeal.
The builder has also been ordered to pay the court costs.
The decision by the court could open the flood gates for hundreds if not thousands of people who purchased properties off plan prior to the recession.
With many construction companies simply closing down and leaving development projects unfinished most off plan purchasers thought they had lost their money due the inherent difficulties of prosecuting builders.
This Supreme Court ruling now means that builders who break their contracts with clients can be made to pay. Anybody who finds themselves in this position is advised to seek legal advice before taking any action and the Murcia Supreme Court decision could give them legal precedence should they decide to go to court.