Promissory Contract

Discussion in 'Portugal Property' started by Robby, Dec 4, 2008.

  1. Robby

    Robby New Member

    We are purchasing an Apartment in a Condominium complex, off plan. The date for completion in the Promissory Contract is October 2008. The original documentation for reservation of the property was January 2009. We are now told the building work will not be complete until April 2009, I am unclear if this includes the Habitation Licence. Surely with the delay in completion of building work the Builder is in breach of contract. Our solicitor advises us this is not the case unless the building work goes beyond April. Has anyone experienced a similar situation and can offer any advice?
     
  2. I trust that your solicitor is Portuguese & not involved with the builder ?
    It is impossible to answer your question without reading the Prom Contract.
    If the building isn't completed until April the habitation licence may not appear for weeks or months after that.
    You don't say where it is.Someone with local knowledge may be able to help.
    Jim
     
  3. Robby

    Robby New Member

    promissory contract continued in reply to James

    The Solicitor is Portugese, and I am told reputable by a Financial Advisor based in the UK. The Solicitor has Offices in Lisbon, Faro and the UK. Not certain whether he is involved with the builder or not but he certainly knows him and refers to him by his christian name. We are buying an Apartment in Sao Martinho do Porto. When we Purchased the property in 2007, I was told that completion dates in Promissory contracts in Portugal were legally binding, otherwise i would probably have asked for penalty clauses. The Promissory contract also states tthe builder should communicate, that hasn't happened either.
     
  4. Have you spoken to your lawyer about this situation ?
    If you want to email me a copy of the promissory contract I will give you an unbiased opinion .I must point out that I'm not a lawyer but I do have some experience.
    Jim
     
  5. omostra06

    omostra06 New Member

    if the property is not going to be ready by the time the contract runs out, then you need to have the contract extended, your lawyer should be on this, getting you the extention with the new completion date, as for compensation it should have been written in on the original, not much you can do now as you promised to buy the property in the time frame, does it say anything about only buying if the house is finished, if not you dont have much you can do. watch out that if the contract runs out and you have not bought the owner could concider you to be in breach of contract as you did not buy within the stated time frame, get an extention on the contract, speak to your lawyer and the owner.
     
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