During the meeting last week, we covered a number of subjects, which gave lots of information to buyers, who were all at various stages in the buying process.
Before the meeting, I had been waiting for some positive news from Tecnicil regarding, outstanding rental payments, missing furniture, and the backdating of condominium fees. As we speak, I am still awaiting a response from Tecnicil, but, it is the huge amounts of emails that I have received from buyers this week, that has prompted this post.
At the meeting, I covered compensation payments, explaining when payments on phase 1 & 2 started, the amounts involved and when they should be payable up until. This week, I have received numerous requests to calculate buyers compensation and have done so and my figures are 100% correct. I now find that my figures differ from those being offered by Tecnicil, this is either due to simply offering less than they should, or, as appears to be the case, due to the fact that they are trying to cease compensation payments when they give notice to snag, rather than deeds as it should be. I have spoken with Tecnicil over this and advised them that the contract is quite clear, in that compensation is due up until 28 days after deeds notification, and deeds notification cannot be given until the apartment is to the buyers satisfaction, or signed off by the snaggers. Tecnicil's approach on this annoys me somewhat, as it comes from a company that has ignored the money back clause in the contract, going on to say that they are at least offering compensation in line with the contract as an alternative. My advice to buyers, is to be aware of this, and what you are due and make sure it is correct before going any further, as you have no chance of getting it corrected once you have gone to deeds.
Also, at the moment, Tecnicil are pushing buyers to pay their final furniture payments, before they go to deeds, in order not to hold up delivery. Let me be quite clear on this, buyers who have completed almost 2 years ago and have paid in full for their furniture, still do not have complete furniture packs. This is because all of the furniture has not been paid for by Tecnicil and so is not available to install. If you do not wish to become another buyer with an apartment that you can't use due to missing furniture, mattresses, sofas, patio furniture, I would suggest that you hold back your final furniture payment until you have assurances that everything is available. Better still, maybe don't even complete on your apartment, until you have such assurances, otherwise you may end up in the same boat as others that have gone before, which is very frustrating.
To date, Tecnicil have not paid any rent to buyers who are in the rental pool, these payments should be made every 6 months, yet again, some buyers who completed almost 2 years ago have received nothing. My advice to those buyers who are affected by this, is look at your contract, if Tecnicil do not pay your rent, you can terminate the agreement and still expect future rental payments, as they are in breach. This gives you your apartment back, takes it out of the hands of Tecnicil, and whilst they probably still won't pay any rent, you can hold amounts due against future condominium charges for example.
So what of those condominium charges? Towards the back end of last year, Tecnicil called meetings for some of the first communities to be completed. The notice given for such meetings was around 10 days (if at all), a period which I have since asked Tecnicil to review and maybe increase to 6 months, to allow buyers to make plans to attend. The Canna meeting was the first to be held, 2 buyers in attendance, 1 representative, representing 3 other buyers, so 5 buyers in total to vote. Tecnicil hold the votes of the empty units, I understand that was in the region of 30, so you can guess in whose favour the votes went. Similar patterns emerged on the next few communities and Tecnicil failed to advise many buyers of the outcome of such meetings within 28 days,which they are duty bound to do. It was decided that buyers should have to accept the accounts and pay all fees due from 2009 & 2010, if they had gone to deeds during those years. This was irrespective of whether their apartments were habitable, or whether they could access the site, or whether they had electric or water, or whether they had missing furniture or not. Tecnicil had previously provided myself and other buyers with emails stating that condominium fees would not be backdated where buyers could no use their apartments for whatever reason. Today, Tecnicil have sent bills for backdated condominium fees, some of them up to around 1500 euros, despite some buyers never being able to use their apartments, having incomplete paid for furniture packs, and having received no rent that is now well overdue. My advice to anyone receiving bills for backdated condominium charges, is to challenge them, stating that you will only accept liability from the date you were fully able to use your apartment.
Along with all of the above, one buyer in the rental pool, today received a letter from their lawyers, stating that if they didn't pay their arrears on their water and electric, they would be cut off. The electric and water bills for all buyers in the rental pool, are the responsibility of Tecnicil, so yes, they haven't been paying such bills. In this particular instance, the apartment in question has also been rented out by Tecnicil, highlighted by the fact that another buyer staying in that apartment recently, commented on it's dirty state and other problems, which greeted them on their arrival. This is not an uncommon theme when it comes to comments regarding Tecnicil Resort Management, who have put buyers in wrong apartments, not carried out cleaning instructions given, told buyers arriving they have no reservation despite buyers having confirmation emails, I could go on trust me!
The fact is, Tecnicil have put themselves in charge of the future management of the resort, yet have not made a great start! They are showing themselves, to be a company who want it all their own way and have acted disgracefully over many matters. We are getting an owners group together, to hopefully ensure that we make sure that we all protect our investments going forward and get the most out of our holiday homes. Personally, whilst I am currently in the rental pool, with missing furniture, knowing others rents haven't been paid, knowing the apartments are not well managed, I will certainly be looking to get out after 2 years, to manage it myself, and ensure my utility bills are paid and connection remains.
I highlight all of the above, in order that buyers are aware and can so act accordingly, with caution. Many of us are aware of the importance of an owners group, as if Tecnicil carry on the way they are, they will destroy OUR resort and OUR investments. We need to ensure that Tecnicil are aware that as a group, we have the power to shape the future. Maybe Tecnicil just knowing that, will be enough to ensure they pull their socks up and start acting with integrity. I hope they do, and I still believe they should be given time and a chance to. However, if they don't, it is important as a group that we are able to put alternative management in place, in order to keep Vila Verde looking as fantastic as it is starting to, and to ensure that is well run for the benefit of us all for years to come.
Rant over.
Andy
