Swapping into another property purchase-Updated 14.12.2010

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Swapping into another property purchase-Updated 14.12.2010

Postby Admin » Wed Sep 08, 2010 10:03 am

Dear Buyers,

Due to the current unpleasant financial status of the all off-plan Bulgarian complexes (most of them situated on the sea side or at the mountain resorts), many of these developments have been left non-completed or abandoned for the last year or two, or these are still at a stage which is far away from habitation, neither renting out or leasing. On the one hand there is a developer who is unable to complete on various reasons (basically lack of funds and huge mortgage loans to secure their profit). On the other hand very often there is a bank which holds mortgages established in its favor, or - there are number of buyers in the complex, who do not wish to invest any more money before the complex is completed and operated, with working and available facilities.
At the end of the day the only ones who have their rights already harmed, are namely the foreign investors (i.e. the property buyers) who have invested their hard earned money with the intention to make profit or to get their dream holiday home. They cover all the unpleasant negatives of an abandoned complex and seller who vanished; or in the worse scenario – money-laundry fraud performed by agents and sellers where they purely steal the buyers’ money (for example – “Windows to Paradise” Complex near Kavarna, “Sunnit Lodge” or “Princess” complex in Bansko, “Pearl 1 and 2” complexes near Razlog, “Aheloy Beach” complexes near Aheloy, and unfortunately many, many more).
This inconvenient situation has led to huge financial loses namely for these foreign property investors/buyers who have initially purchased “off-plan” properties with the intention to make profit (mainly from further renting-out or later re-sale), but without hiring proper local lawyer or solicitor to supervise their investment. At the other end we need to admit the fact that the already completed and habitable complexes in Bulgaria, built by reputable developers who have calculated precisely their expenses and loses (skipping the S-classes, the luxury boats and the world holiday tours), are now working properly and bringing benefits to the owners there. We also need to bear the Bulgarian tourists, who on the base of the crisis, more and more prefer to discover the opportunities of the local holiday complexes in the mountains or near the sea side. Bulgaria is a small country so locals use to travel nationwide ll through the year.
So being property lawyers, what we have already performed personally couple times so far, was namely to swap buyers who have invested already into a delayed or non-completed complex, (for example half of the purchase price paid by them already) into a similar property/development/complex situated in the area, only for the outstanding balance of their purchase price – and this has been done in order to save their investment. We believe that it is quite fair at the end of the day to receive an apartment against the total price which you have agreed for in the contract you have signed on your own, instead of ending with empty hands, no apatment and money gone in the pockets of the busted developer.
Here you may post your requests and questions, comment with each other, and you may seek for help for transferring your purchase without any further expenses into a development that will meet at least the same expectations. What better solution if it could be done without any agent’s commissions?


Bulgariandeals Team

b2jude
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Joined: Sun Oct 23, 2011 1:13 am

Re: Swapping into another property purchase-Updated 14.12.20

Postby b2jude » Sun Oct 23, 2011 1:52 am

In 2008 I paid 38800 euros deposit to Mangle oversea developer company for the purchase of off plan condo in Kranovo.
In 2009 Mangle Oversea said it can’t build Kranova project because of financial crisis and it changed its company name to Mangle Development Bulgaria, then offered me to buy condo in Kavarna Gardens where construction was complete. I hired a lawyer who was able to work with Mangle to sign a new preliminary contract where Mangle Developements agrees to have received my deposit and proposed to sell me a new condo. Since 2009, the deal never closed, Mangle have been walking away from the contract. They told us that their bank has seized their property because they can’t pay their mortgage
My lawyer unsuccessfuly attempted to injunction Mangle properties. My lawyer has been advising to buy instead of taking my money back because I have less chance to get the money back due to Mangle poor financial condition. Recently, my lawyer informed me that mangle said they are have started to pay their mortgage and Mangle’s bank was willing to sell me the condo but unfortunately Mangle has filed bankruptcy due to money owed to some private creditor like who have filed
court case against mangle. The court case date is set Oct 30 to determine whether Mangle will agree to go bankrupt or pay the creditor to stay in business.
I have spent a lot of money in legal fees and I don’t want to continue to spend on legal fees because I’m not sure to get my money back unless Mangle decided to sell me swaped apartment. Could you please advise ?

In June 2011 after Multiple unsuccessful attempt to reach out to Mangle lawyer because she was not answering to my lawyer phone calls or replying to email basically she vaporized for couple of months,I asked my lawyer to check the property registrar in the city to see whether Mangle has properties we could injunction to secure my money. My lawyer checked and informed me that there were 3 properties available with one injunction each from the private investors like me. I asked my lawyer to submit the application to place the injunction on all 3 apartments as second creditor. I paid her legal fees and application fee but my lawyer told me that the judge is asking to pay another fee called "guarantee fee" sort of bond to the court which is refundable of the amount of 5000 lev ( bulgarian local currency) to submit the application for injunction.
I was shocked. I'm victim of the fraud and I want to get my money. I don't understand why I should pay a bond to the court. Is it true ?



Regards

Bruno
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Re: Swapping into another property purchase-Updated 14.12.20

Postby Admin » Sun Oct 23, 2011 7:10 pm

Dear b2jude,

I don't know which is your source of information about Mangle's insolvency hearing date. You are saying that it is Oct 30th, but a simple check in the schedule table of the court (posted on their website) no such hearing is appearing. Also please have in mind that 30th October is Sunday and the court is not working during the weekend. Until the end of October there is no insolvency hearing against Mangle.
Currently according to your post it appears that you have confirmation from Mangle that you have paid installments to them. This confirmation is not enough for you and if Mangle are announced insolvent you will be part of the big row of the creditors. As you have not proceeded with a court case actions against Mangle you can't hope to be included in the list of the so called privilege creditors, who have advantage in front of all others when the assets and money of Mangle are divided between the creditors. In all cases if insolvency is on the table you will have to find a lawyer who can represent you in this procedure. Normally when a court announces insolvency the judge is appointing a special trusted assignee who takes care of all assets of the company and also determines a date for meeting of the creditors. The trusted assignee should be contacted by you or your lawyer and you have to register your insolvency claim (to confirm you are participating in the insolvency). Normally such creditors' meeting takes place in one two months after the announcement of the insolvency.
In connection with the deposit you were asked from the court, I want to confirm that such practice is normal. The procedure you have started as far as I understand from your explanation is the so called preliminary security of claim, i.e. you have tried to place injunction before starting a main court case against Mangle. If this is the case then the court has not only asked you to pay this refundable deposit, but also instructed you that you have 1 month to start the main case by submitting the claim in the same court. After the case was over the deposit is sent back to you. The idea of the deposit (guarantee) is that if your claim appears not well-grounded the deposit will serve to compensate the other party's damages that theirs assets were under such injunction. 5000 leva is the minimum amount asked by courts in such cases, we have seen cases when the amount of the deposit is 20000 leva.

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b2jude
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Joined: Sun Oct 23, 2011 1:13 am

Re: Swapping into another property purchase-Updated 14.12.20

Postby b2jude » Tue Oct 25, 2011 3:52 pm

Your clarification was very helpful. Sorry I wasn't sure about the exact court date.
How can I find other Mangle creditors in my situation on your website?
Thank you

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Re: Swapping into another property purchase-Updated 14.12.20

Postby Admin » Wed Oct 26, 2011 9:29 am

Dear b2jude,

If other people are interested in your topic I am sure that will write here giving their position. But as far as we are informed lots of the other buyers there have already successfully completed cases against Mangle. This means that they have court decision against the company in their hands, which put them in front of you in the row of creditors.

Bulgariandeals Team


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