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Post by krkisland on Jul 31, 2007 21:09:11 GMT 1
I had news today that our seller a big property developer company in Croatia has decided to back out the sale of the apartment we "were buying". The developer manager owned 4 out of the 6 apartments in the block. I suspect he has decided he wants all of them. One good thing I suppose is I get my deposit back and they also have to pay me 7 grand. 7 grand however hardly covers the hassle involved having to fly back again another time to start the process all over again. The joys of buying in Croatia..
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Post by Sasha on Jul 31, 2007 21:29:18 GMT 1
Look at your contracct and sue them, if possible!
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Post by justapixel on Jul 31, 2007 21:35:27 GMT 1
Well, they do have the right to back out the deal, the same as you have the right to get your 10%. But the hassle remains all yours. .
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Post by krkisland on Jul 31, 2007 21:40:32 GMT 1
Yep and they have the cheek to offer me a smaller apartment in the block next door..grrr
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Post by justapixel on Jul 31, 2007 21:49:27 GMT 1
They probably expect you to refuse.
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Post by krkisland on Jul 31, 2007 22:00:45 GMT 1
Well 7 grand isnt a bad profit for 7 days work I suppose. Looking on the positive side :-)
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furio
Junior Member
Posts: 25
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Post by furio on Aug 1, 2007 14:27:30 GMT 1
You should count yourself lucky that he is paying you the 10% penalty. Many times it is structured so that the company selling the property goes bankrupt. Unless of course he owned the place outright as an individual then he has to pay the 10% to get out of the obligation.
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Post by Carol on Aug 1, 2007 20:03:39 GMT 1
when the seller backs out, the buyer has two choices - return of deposit and the penalty as per the pre-contract OR take the seller to court to enforce the pre-contract i.e. to make him complete the sale with you. There are all sorts of caveats to the second option, not least of which is the speed of the courts and how much you would want the apartment if you had a disgruntled neighbour, but it is an option. The timing is bad though because August is a difficult month for finding a good lawyer who is not on holiday (or actually for finding any lawyer who is not on holiday).
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Post by krkisland on Aug 1, 2007 21:04:23 GMT 1
Latest Update - The company selling the apartment wont give a reason why they are pulling out. Very odd.. Also my agent in Rijeka tells me they were relunctant to sign his contract with the clause regarding getting double the deposit back if the seller pulls out. Apparently their standard contract would only return the deposit and nothing else. I however have a different contract
It appears like the secretary has now realised this so has gone away to look into it further. No feedback since yesterday. Im waiting for an answer and pushing the agent to get a response as to whats happening. I hope Im not going to have to sue them to get my money back! It could make buying an apartment in croatia more difficult than it already is! grrr
So you could force a sale. But that would probably take years. And do I want to have an apartment above the director of the company who didnt want to sell it.. hmmm
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Post by Carol on Aug 2, 2007 10:15:43 GMT 1
has the seller signed your contract in front a notary? Do you have a legal copy (not just a photocopy which could have been tampered with??). if so you have a good case and could probably force a sale. First thing would be to cause him trouble by stopping him sellign the property to anyone else.
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Post by Carol on Aug 2, 2007 10:17:35 GMT 1
however for anyone else reading this, there is always the option of holding deposits in an escrow account. It costs more and the sellers don't like it, but it at least means your deposit is protected.
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Post by zorro on Aug 2, 2007 14:47:32 GMT 1
...welcome to Croatia Mr Krk!
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Post by krkisland on Aug 2, 2007 21:54:09 GMT 1
I have had a response from a lawyer in Zagreb today
Apparently there are three options. 1) Force the sale 2) Get Seller to return deposit plus an extra 10% as per contract or 3) File a claim for compensation of full damages that can be higher than just 10%.
RESPONSE WAS AS FOLLOWS I can confirm that we can provide legal help on this matter and I can inform you that we have several similar cases that are currently active involving buyers from the UK and the States.
The options that you mentioned are two of three possibilities and the third one is to file a claim for compensation of full damages that can be higher than just 10%.
The court process can last up to 1-2 years.
Regarding the fees I can inform you that they are regulated by the CBA Tariff.
The joy of property purchase in Croatia..
I have one document here with original signatures from buyers and sellers this one I think is original but looks to be a copy and signed. It has several clauses. One of which I believe is the double depostit back if seller backs out. I believe we have another original document however I am clarifying as it may be with relatives in Croatia.
Question - Can the seller sell the property to someone else if he still hasnt refunded my deposit?? I havent taken legal action yet.
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Post by Carol on Aug 2, 2007 22:05:50 GMT 1
yes unless you do something to stop him such as put a copy of your pre-contract at the land registry. in any case it depends what your contract says.
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Post by Carol on Aug 2, 2007 22:09:08 GMT 1
in my opinion a local lawyer with local contacts is often a better option. people think that if they hire someone from a major firm they will scare the other side. it works in the uk but not here in croatia because the lawyer's job is often more practical and administrative here. in any case a high powered lawyer is only going to send his most junior assistant to deal with cases like these.
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