ROGER WILLIAMS WARNS OF RISKS OF BUYING OFF PLAN PROPERTY (Brecon and Radnorshire Liberal Democrats)

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Brecon and Radnorshire Liberal Democrats <info@brecon-radnor-libdems.org.uk>

ROGER WILLIAMS WARNS OF RISKS OF BUYING OFF PLAN PROPERTY

November 10, 2009 12:00 AM

Roger Williams, MP for Brecon and Radnorshire, has issued a warning to potential overseas property purchasers of off-plan property (property that has yet to be constructed): BEWARE!

After being contacted by various constituents who purchased off-plan property in Bulgaria by a developer that went bust before the construction of the properties had been completed, Roger Williams has issued a warning to potential purchasers: Unless you can afford to lose the money you invest then think carefully before getting involved.

Roger Williams said:

"Over the last few weeks I have been contacted by a number of constituents who invested in a company called 'Bulgarian Developments'. In August this company was 'no longer trading' leaving my constituents with partially built apartments which they had paid for in full. Since then the developer has also gone bust and its bank is currently suing the developer. Bulgarian Developments sold my constituents a holiday dream but it has turned into a nightmare.

"It is important that people realise the financial dangers involved in buying property off plan. Anyone doing so should take certain steps. First and foremost is always use an independent English speaking lawyer, in the country you intend on buying in, to represent you throughout the purchase of your property overseas. It is the lawyer's job to protect you and inform you. Do not accept a lawyer recommended by the agent or developer. The definition of 'independent' is that the lawyer should represent your interests and your interests alone.

"Secondly employing a professional agent or buying from a professional developer will also help. Find out as much about the agent and developer as possible. Try to contact previous clients to get their first hand experiences.

"Thirdly, go to the country where you intend to buy and check out the developer and the development. Make sure that the developer has complete ownership of the land and that they have proper planning permission for the development.

"Finally, buying off plan property can be very profitable but it also carries with it significant risks. Only invest what you can afford to lose."

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