Dr Geraldo Furtado

Discussion in 'Brazil Property' started by Jacobswe, Jul 3, 2013.

  1. Jacobswe

    Jacobswe New Member

    Hi,

    Has anyone who invested in the Dr Geraldo Furtado project in Natal received compensation for the delay of the completion date?
     
  2. jama

    jama New Member

    Hi there, yes I've also invested in the project and was thinking exactly the same thing. However I believe that there is a leeway period of 180 days in the contract or something like that but need to check small print. So, after the original completion + grace period has passed some compensation would be due but we haven't passed that yet have we?
     
  3. Jacobswe

    Jacobswe New Member

    I was suspecting that there was a grace period, as the delay obviously cannot go on forever, but I was not sure if the developer could claim force majeure due to construction delays. I had suspected that perhaps in fact, the developer had compensated some investors, who were willing to go to court and demand compensation.

    In my case, I had been thinking about renting out the apartment and sell it afterwards, but I would now have to keep the apartment longer than planned to make up for wear and tear. Most likely, I will sell the apartment upon completion, though I'm wondering if the political turmoil in Brazil will affect property prices?
     
  4. DTC

    DTC New Member

    Hi,

    These companies have been included this grace clause in the contracts, and all of them states 180 days. However these kind of clause has not been accepted by the Brazilian Court and the most of the force major claims are not being accepted as well.
     
  5. Jacobswe

    Jacobswe New Member

    So I was not entirely wrong then. It seemed really strange that the developer could claim force majeure on the flimsy grounds that they provided. In addition, I found the grace clause to be strange.

    I have used Manzanares International Lawyers for this investment and they claimed that everything is in order, but I suspected early on that they were protecting the interests of the developer.

    The delays have cost me a lot in rental income. Please reply in this thread, as I'm sure any more information you could provide would also greatly interest other investors in the project.
     
  6. Jacobswe

    Jacobswe New Member

    I think it would be hard go about it alone, as you write that you are a group of investors engaged in it, but it would certainly have to be done if the development is delayed further. I'm sure that other investors would also come together then.

    The developer seems serious and has a good track record, so I think they will fulfill their obligations. It would not hurt to have the contact details of the lawyer you recommend, but the forum does not allow private messaging for ordinary members, so I guess I will have to put it off until I actually need a lawyer.
     
  7. jama

    jama New Member

    Before going down the lawyer route have you made contact with developer regarding compensation for late delivery? I understand your frustration as we are all in the same boat but as you say the developer does seem to be pushing on with the project. Surely it's speedy completion and to an excellent standard is the most important thing here.
    Regarding the property market in Brazil it is far better in my opinion to buy in a desirable city centre location than a holiday let with the growing middle class in Brazil. In Petropolis, Natal there will be demand, World Cup or not.
     
  8. Mahogany

    Mahogany New Member

    Dr Geraldo furtado natal

    Hi everyone,

    I also am an investor in the dr Geraldo furtado project. I live in London and I would like to meet up with other investors in the project. If anyone is interested in having a chat about the development please Let me know and I'll leave you my number so that we can arrange a meet up.

    Cheers
     
  9. Jacobswe

    Jacobswe New Member

    Hi,

    It would have been interesting to have a chat about the development, but I do not live in London. This might not be the ideal place to share information, especially considering that the fact that there is no PM function on the forum, but it would make the information available to everyone. I'm sure everyone else who have invested in the project are also interested in any information that we can share with each other.
     
  10. Mahogany

    Mahogany New Member

    Hi, if you would like to arrange a chat, email me on aidan 14 at gmail. com
    Cheers
     
  11. Jacobswe

    Jacobswe New Member

    I have received information that the completion date of the project has been moved to July 2014. This will mean that the project has been delayed for 1½ year if it is indeed completed by then. I think it is prudent to start exploring what legal options are available to receive compensation from the developer.
     
  12. Mahogany

    Mahogany New Member

    I think it would also be prudent not to rush into legal action to try and retrieve compensation. I'll admit I'm not an experienced property investor, this is the only property that I have bought to date in any country. But I think that we have to look at the possible consequences of mass legal action. This could potentially bring the developer down resulting in us having to go down a very different quagmire of a legal route..
     
  13. Jacobswe

    Jacobswe New Member

    Hi,

    Exactly the same thing struck me today. I'm sure other investors would still separately seek to acquire compensation for the delay, even if no mass legal action is taken. The developer is currently constructing three projects in total, in addition to being in the process of pre-launching another project. The latter being quite a huge project, consisting of three separate nineteen story buildings. I have read that developers in Brazil have very small margins, so I'm not sure how it would affect them if many people would be suing for compensation. Naturally, I would assume that the developer is able and prepared to take responsibility for the delays.
     
  14. Jaqueline

    Jaqueline New Member

    why not get together

    I have, unfortunately, a certain amount of experience with developers in this part of Brazil. Often deposits are being used for start-up projects, and not for the one you actually paid for.
    Believe me, when you do not take action, they will try and get away with it.
    A delay of 18 months is absurd, unjustified and unacceptable.
    Whether you want to take a joint action or not is something that can be discussed, so I would suggest those who are unhappy with the situation get together and discuss the options with a lawyer who has experience with property law. I was happy with my lawyer, and will be happy to share contact details with those seriously interested.
     
  15. Jacobswe

    Jacobswe New Member

    I guess the contact details of the lawyer you recommended could have come in handy now. Upon purchasing the properties, I used Manzanares, as recommended by the real estate agent; however, in my dealings with them, I have gotten the impression that they are "too big" to make much of an effort.
     
  16. Jacobswe

    Jacobswe New Member

    Thank you! I thought it was not possible to send private messages unless you are a premium member? Nevertheless, thank you.

    Here comes another update:

    I received an email from the developer, where they claim that the delays were beyond their control, but that the project is progressing well and once completed, investors can expect a solid return on their investments. This is no different from what they have said before, but there was an interesting exception this time:

    "The contract allows for late delivery penalties and these will be payable as applicable according to the contract"

    As far as I can remember without checking the actual contract, it is not stated how much investors will be compensated. In addition, there was no information in the letter on when the compensation will be paid. Thoughts, anyone?
     
  17. Bidu

    Bidu New Member


    If you allow me, there are 3 options in a situation like that.

    Since, I believe you are foreigner, you don't live in Brazil, and you are not paying a monthly installment to the construction company, then, in your case, there is only 1 option, which is request that they pay you a fine for not delivering your unit on time.

    As he answered you at the last e-mail that there are delivery penalties, then you need to check the percentage and calculate it. After that, dependinf of the way you are paying your installments, you can reduce the fine's amount from your last installment (once it's a common agreement between the company and you) or you can pay everything and then, after the later delivery you demand they restitute part of your money back. (But sometimes, this last option is not accomplished by the construction's company and if it is so, you'll need to hire a lawyer for this matter).



    Best Regards,

    Rafael
     
  18. DTC

    DTC New Member

    Same rights

    By my own experience as a foreign suing a developer company in Brazil, it does not matter at all if you are a foreign or a Brazilian. You still have the same rights and conditions. I have been passing through the same situation: the delivery delay of a property. My complaint is exactly the same as the other Brazilian investors. Beside the penalty clause there are many other rights and compensation that I am claiming for.

    By the way, be aware about any offer made by the developer. This happened with us as well. They usually try to avoid any further lawsuit against them because they know that their chances in the Court are much lower. They try to make an agreement good for them before things get ugly to them!

    Any way, it would be wise talk with a lawyer to know which are the chances and the legal measures that could be taken.

    Regards
     
  19. Jacobswe

    Jacobswe New Member

    Hi,

    Thank you for your helpful post. There is one more payment to be made, so I think it would make most sense to reduce it in accordance with the late delivery fine to be paid.

    A rental guarantee was promised by the developer, and because of the delays I will have lost out on 1½ years of rent. Of course, this is not part of the compensation offered by the developer, as they have also claimed force majeure, but do you think that a lawyer can recover the lost rental income by taking the case to court? The developer promised a 6% yearly rental income.
     
  20. DTC

    DTC New Member

    Hi

    Take a look at a decision rendered by Natal's Court. The judge awarded immediate payment of rentals as an injunction. The developer appealed based on force majore and this is the decision:

    Interlocutory appeal
    Origin: 9th Circuit Court of the District of Natal.

    DIGEST: CIVIL LAW. REVIEW OF CONTRACTUAL CLAUSE ACTION C/C. INTERLOCUTORY APPEAL. THAT DECISION DETERMINED THE PAYMENT OF RENTALS IN FAVOR OF COMPOUNDED DUE TO THE DELAY IN THE DELIVERY OF THE PROPERTY. POSSIBILITY. DELIVERY PERIOD of the PROPERTY that EXCEEDS 24 (twenty-four) MONTHS. HEAVY RAINS CLAIM AND THE GLOBAL ECONOMIC CRISIS. LACK OF SUITABILITY AND REASONABLENESS.DECISION MAINTAINED. FEATURE KNOWN AND DENIED.


    Natal-RN, December 15, 2011.
    Judge AMAURY MOURA NEPHEW
     
Loading...
Similar Threads - Geraldo Furtado
  1. Mahogany
    Replies:
    2
    Views:
    2,614

Share This Page