Construction Stopped

[Explorer II]

If you buy a block in a new development and the company stops construction, how are they/are they legally accountable?

I bought a block some time back with the promise of a 5 star hotel and various other really nice facilities. Now it appears they're just selling it off as land.

[Orkibi]

did you have any contractual agreement with the developer/Builder?

did you have any Performance bond in place ?

[Explorer II]

I read through all the papers when I bought it, but don't recall seeing it. I'll have another look.

I bought in the final stage of the development. Pretty much all the properties had sold and they had "Broken dirt" on the hotel so all seemed well.

The prices went up a little soon after I bought it, but recently have dived. I have the original price list and one guy bought his block for about 160,000 and its now advertised from 99,000.

I spoke to someone in their office today who said the guy in charge was out (convenient?) but said as far as he knew it was going ahead.

The reason I'm doubtful is there is now no mention of the hotel etc on their site nor on the estate plan and people are bailing big time.

[drelly]

If you can't get an appointment, I'd go into their office and then consider legal advice.

[Explorer II]

Unfortunately I'm in a different country.

Will wait to hear what the say and take it from there.

Just doesn't seem right that there aren't laws in place to prevent such things.

Thanks

[tpr2]

Most of those companies would have set up a shell company for the development. If it fails...the company is wound up and you are left out of pocket.