Morocco Property Forum - Property investment in Morocco - View Single Post

camel · 24-09-07, 11:41 PM

Yes, that is the jist and this is my understanding. A bit of a chicken and egg situation I am afraid.

Now, the question comes where does the developer gets the 40% ??? He tries to collect as much as possible from our reservation deposit and this where the investor is left exposed.

The investor has paid to the Agent and if the Agent does not pass the funds to the Developer in the mean time the Agent goes bust or decide to take your money to Cuba.

The money has been paid to the Agent in UK/Eire, the funds have been moved out of UK/Eire. Normal Agency law applies. ie, the principal is not responsible for the Agents action.

Sorry, its a dooms day senario but sadly I have seen happen in Spain.

24-09-07, 11:41 PM	#5 (permalink)
camel Active Member Join Date: Sep 2007 Posts: 94	Re: Developers going bust Yes, that is the jist and this is my understanding. A bit of a chicken and egg situation I am afraid. Now, the question comes where does the developer gets the 40% ??? He tries to collect as much as possible from our reservation deposit and this where the investor is left exposed. The investor has paid to the Agent and if the Agent does not pass the funds to the Developer in the mean time the Agent goes bust or decide to take your money to Cuba. The money has been paid to the Agent in UK/Eire, the funds have been moved out of UK/Eire. Normal Agency law applies. ie, the principal is not responsible for the Agents action. Sorry, its a dooms day senario but sadly I have seen happen in Spain.