Builder (Grupo MASA)sentenced to pay back expat house buyers
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.
PS taken from the above website;
I've just got to say that I am really sorry for all of you who had trouble with Grupo Masa before.
Although I've got to point at something.
Grupo Masa is cheap. As an Estate Agent myself my company rejects working with them. However, 100s of clients always wanted to buy a home with GMasa cause it was cheaper than buying it from a different builder.
Believe it or not I have said to people. DO NOT BUY IN CAMPOSOL but they still did at the end through them...!!???
Now, when you buy cheap, you get cheap and that may mean trouble. It is not the same buying a Volkswagen than a Fiat, same story with houses.
The problem is not the builder but the people. British and Spanish people who are stupid enough to buy from them even getting the advise from experts not to.
Grupo Masa is still and will carry on selling houses cause they sell the cheapest stuff in Alicante and people like cheap. Stupid I know, but they do.
Cheers and good luck with the website
Last edited by john hannon; 05-07-2009 at 09:43.
Reason: To add PS
Builder (Grupo Masa) sentenced to pay back expat house buyers
I wonder if this would apply to those who bought on 42C? Our houses were very late in being built.
In UK the builder would just go into receivership and start up the same day with a different name and buy all the assets at a knockdown price.The customer (the creditor)would end up with nothing-Does this happen in Spain?
Originally Posted by JOHN
You bet it happens in Spain John. Couldn't even guess how many people have lost some, if not all, of their money. Very sad.
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