A group of 10 British property owners is taking legal action against the developer of a golf and country club in Spain over breach of contract.
They are demanding the money back from their investment in the Corvera Golf and Country Club in Murcia as luxury facilities are not being delivered on time. They also claim that developer Calidona is facing financial problems and fear they could lose their life savings.
British solicitors Irwin Mitchell who have offices in Spain, are representing the investors who have paid deposits and staged payments of up to €200,000 on properties worth up to €550,000.
They are acting now amid fears that the developer of the upmarket resort could go bust like hundreds of other Spanish developers in recent months. Another Murcia developer Polaris World only narrowly avoided bankruptcy last week.
Irwin Mitchell believes that more than 100 British clients could be affected by Calidona’s alleged financial troubles and failure to deliver. Lawyers argue that the developer is in breach of contract for not having built luxury facilities that were promised at the time of sale. This includes a five star hotel, indoor swimming pool, spa, medical centre, equestrian centre, leisure facilities and tennis courts, as well as a commercial centre with bars, restaurant and shops.
‘The group claim that none of the five star leisure facilities have been built and that they are now being chased for final payment and face the threat of being sued under Spanish law by the developers Corvera Golf and Country Club, SL, despite being informed that building licences are not even in place for some facilities,’ said Irwin Mitchell in a statement.
‘And to add to their concerns, they also fear that the failure to build the facilities on this and on a previous site, Roda Golf, is a sign that the developers have run out of money and may go bust, taking the group’s hard earned money with them,’ they added.
Solicitor Alex Radford, from Irwin Mitchell Abogados in Malaga, said the issue was of increasing concern to a growing number of people who had committed hard earned money in Corvera.
‘This is obviously a very worrying time for all of these people. Buying a property in Spain is a big decision. These people have worked hard to earn the money to buy these homes and saved for a very long time. To pay out this money was a decision they would not have taken lightly,’ he explained.
‘Having done that, quite rightly, they expect to receive what they have paid for. They have been promised five star facilities to go with their homes, and they have been very badly let down indeed. Clearly they have been misled by the developers, and we want to get justice for them,’ Radford said.
‘These people want their money back or all the facilities they were promised to be built, it really is as simple as that. We believe the developers are in a breach of contract because of the lack of facilities that they said they would build when they first sold homes to our clients and a large number of other people who have also invested hard-earned money in a deal the developers haven’t honoured,’ he added.