Dr Geraldo Furtado

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

  1. Jacobswe

    Jacobswe New Member

    It amazes me how helpful everyone have been. It is however too bad that so few people who have actually invested in the project have written here. I guess you are right that the developer is trying to offer a bad deal by settling things out of court, because they know that there is a risk that they might end up paying more otherwise.

    If there were people willing to go against the developer together, it might be a good idea to hire a lawyer, but I think it will be too exhausting to go at it alone. I will however write to the lawyer you recommended before making any conclusions on my own. I read in another thread that compensation for delays are usually calculated like this:

    PLUS (+) standard juridical 0, 5% interest a month
    PLUS (+) inflation correction.
    Calculated from the date (year/month) they promised delivery.

    Along with the promised rental returns, it would mean a lot of money for me, as I purchased several units in the project.
     
  2. Bidu

    Bidu New Member

    You're welcome! I agree that the most sense would be to reduce the fine from your last installment, but the percentage should be known and it must be a common agreement between the company and you.

    The rental guarantee should not be a problem now. Although there is a delay, it's only valid after your units are 100% constructed. So, you can't say that they are breaking the promise on this matter, once your units are not ready and once they are not available to be rented.

    Basically, you didn't lose the 1,5 years of rent, once it's valid after the conclusion of the construction.

    Plus, as I see you as an investor, in the next time, if you want to invest in a safer and more profitable property/apartment in Natal, please enter in contact.

    Best Regards,

    Rafael
     
  3. Jacobswe

    Jacobswe New Member

    DTC has made me believe that I should get in touch with a lawyer immediately. Do you think it might be best to just settle with what compensation the developer is offering?

    Concerning the loss of rental income, it makes sense what you say, but I think it would hard to make a case when the project is actually finished.

    The court would probably reason like this: "The project is finished, the developer has offered to pay him the rental guarantee, and he wants money he was entitled to in the past and did not receive? He should be happy that project is finished and settle for that, in addition to saving us a lot of time if we do not drag this thing on"

    However, if what you say is true, I would have no case at the moment, because the project is not even finished.
     
  4. DTC

    DTC New Member

    You do have rights for the rents that you have not received because the delivery delay even if the development is not finished. This is the decision of the most precedents that I have taken a look at. Beside that you are under the Brazilian Consumer Law protection.
    Contractual penalty is too little for the damages you suffered, is suffering, and will still suffer from the delay in delivery.
     
  5. Bidu

    Bidu New Member

    Hi!!! I'm not a lawyer to answer you properly.

    Correct if I'm wrong, but I believe that both you and DTC are foreigners investing in properties in Brazil.

    In local market, no construction company offers rental guarantee. It's not common.

    Usually they offer this rental's guarantee to attract international buyers, like your case.

    As I mentioned before, you need to check if they established in your contract a percentage for delay in the conclusion of your units. Usually it's around 6% per year (0,5% per month). But it can varies.

    If you have good comunication with the construction's company, then send an e-mail to then, asking when they think that the units will be ready and remembering then that according to the contract they are 1,5 years in delay.

    Due to that, you can also confirm that according to the contract, you have the right to receive a "x"% fine proportional for the delaying time and you can propose, that it's easier for you to reduce this amount from your last installment of each unit. Usually the construction's company accepts this deal.

    Concerning the rental guarantee, maybe the post of DTC was misunderstood, because, as mentioned before, rental guarantee is rarely offered to the local market in Brazil.

    What happens a lot (and can be the case of the DTC's post) is the following example:

    - I live in a rented apartment and I pay the rent every month. Meanwhile, I'm buying my own apartment and it should be in June of 2013. We are in August and my apartment was not completed yet, so I start a legal case against the company, in order to inform that, since the company broke the contract, besides the fine for the delay, the company should also pay my rent every month in my rented apartment from June till whenever the apartment that I purchased is ready, so I can move in to there.

    I believe that the DTC's post explains exactly that situation mentioned above. The judge claimed the company should pay the rent of the apartment of the person till his own apartment is ready.

    So, I think that this case only would apply to you, if you live in a rented apartment in your country and you are losing money (paying rent) because your apartment here in Brazil is not ready yet.

    Once again, I'm not a lawyer, and maybe you can demand the rental's guarantee in advance, before the aparment is ready. But I never heard about it and I really don't see it happenning, once the company can claim that the building is not finished, so they not even had a chance to start renting apartments to confirm you the income signed in your contract.

    If I were you, I'd enter in contact with the construction's company by e-mail or enter in contact with a friend at the city to search the status of the construction, if you don't trust in the company.

    But it's up to you to decide!

    Best Regards,

    Rafael
     
  6. DTC

    DTC New Member

    Well, if you take a look at the precedent posted, the rents was awarded before the delivery of the property.
    This decision was awarded in favor of my friend that bought an apartment in Estrela do Atlantico, there are a lot of posts about it. This development was delivered only in 2012. Take a look at in the date of this precedent: December 15, 2011.
    Just a lawyer could explain duty why or why not you could receive rents or any other compensation. But I would not trust in the developer at all!! If you take a look in the threads in this forum, it is easy to understand why.
     
    Last edited: Aug 23, 2013
  7. Jacobswe

    Jacobswe New Member

    The lawyer I have contacted said that prospects of receiving compensation for the whole delay, in addition to lost rental income, are quite good. However, I'm still not sure if I should try to find other investors willing to pursue the same path, in order to lower the legal costs, or simply hire a lawyer on my own.
     
  8. DTC

    DTC New Member


    Hi,

    It would depend on how many you know and how many of these ones would be interested in joining with you. If it would be an expressive number it would worth to wait for them as the legal costs could be much lower. But if they are few or undecided I think that you should go by yourself, otherwise you would just waste time. Beside that, as soon as you take the developer to the Court, as soon you could receive the compensation.

    Beside that, undecided people will fell encouraged when they know that someone is already suing the company.

    Regards
     
  9. Jacobswe

    Jacobswe New Member

    There is only one other investor that has responded in this thread and he seems to have disappeared now. The lawyer said that she travels periodically to Europe on business and would be willing to meet investors in the project to discuss available options to pursue. Considering that I have not come into contact with other investors in the project, I guess that I should just go at it myself, as you put it.
     
  10. Mahogany

    Mahogany New Member

    Hi guys, if you mean me I'm still here. I didn't realise that there was private messaging available either. I've added you(jacobswe) as a friend, once you confirm I'll pass my details on to you. Hopefully we can have a chat about the project.
     
  11. Veronica

    Veronica Administrator

    The private messaging facility only becomes available to you once your status is upgraded to active member.
     
  12. Mahogany

    Mahogany New Member

    Hi Veronica, how do I become an active member?
     
  13. Veronica

    Veronica Administrator

    You just became one when you made your 10th post:hello:
     
  14. Mahogany

    Mahogany New Member

  15. Jacobswe

    Jacobswe New Member

    Hi,

    I have accepted your friends request.
     
  16. sven

    sven New Member


    It all depends on the details of the contract. It also depends on the actual rent that could be made from the apartment.

    No judge would consider "He should be happy that project is finished and settle for that". You have 2 years to sue for damages (prescription).
     
  17. Allumjo

    Allumjo Member

    Hi Everyone,

    I have been reading these posts for a while and I have now registered to the site. I am an investor in the development and have been speaking to IMG over the last few months to determine when the development will be delivered. It is my understanding it will be June/July time I am keen to be in contact with other investors in the project. Also does anyone have any views on the weakness of the BRL currency?

    Best Regards,

    JA
     
  18. Jacobswe

    Jacobswe New Member

    Hi,

    I wanted to send you a PM, but it seems that your profile is set not to receive PMs. It would be preferable to communicate privately, as I know for a fact that representatives of IMG have been active on this forum. Our correspondence would not be sensitive, but I would prefer to keep it private. If it is not possible, I can make the information public.
     
    Last edited: Nov 20, 2013
  19. Allumjo

    Allumjo Member

    I think I have to make a certain number of posts before I become an active member this is my second and I believe the magic number is 5.
     
  20. Jacobswe

    Jacobswe New Member

    Alright, I guess here will have to do, then. I don't think the project will be finished by the date set by the developer. Another investor in the project told me that he has been working in construction, and he said that there is no way it will be finished by June/July, judging from the pictures in the newsletter sent by IMG.

    In addition, my Brazilian lawyer visited the construction site and she also doubts the date set by the developer. However, she has made visits at several occasions and told me that construction work is being carried out.

    It is hard to make any predictions on the currency exchange rate so far ahead in time, as it is constantly fluctuating. At the moment and in the foreseeable future, it looks like the Brazilian real will continue to weaken against major currencies. Personally, I am interested in how the property prices are developing in Natal, as I have not been able to find any recent statistics.
     
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