Budapest apartment Gellert Hill

L

Louloo

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I’m in the process of buying an apartment in Gellert Hill, one of 48 ex Embassy apartments. The apartments were to be renovated and I paid 30% in August 2005 and the contract said it would be completed by December 2006, and as you guess there’s no sign of completion. The company is now offering 30% of the rent as the apartment is currently occupied. The rent is to be back dated to the time I paid the 30%. What I’m wondering about is what affect this will have on my contract. There seemed to be no penalty for the company for not fulfilling there side. I was also obliged to pay the full stamp duty in September 2006 to the Hungarian Government even though the sale had not been completed. Unfortunately I share the same solicitor as the selling agency.
Anyone out there having similar experience, or know what’s the situation regarding progress, I’m thinking of taking a trip.
 
Sounds like a strange situation. You mentioned that the apartments are currently rented, which would seem to indicate that renovation hasn't even started. However, the developer is still getting most of the rental income despite the fact that you've already payed stamp duty.

How long is the entire development project likely to take? I could recommend good independent lawyers should you need me to.
 
louloo, as far as I understand you bought a re sale apartment in a good location (I hope since most of the CD apartments were in good location) which has a tenant inside and a promise that someone (the seller) will renovate it for you....
the lawyer that made the contract is the seller lawyer not yours , you don't share him in that aspect, 1st thing to do is to find your own lawyer to inspect the contract. in most contracts the seller can enjoy all the income until transferring of possession, so he take your 30% and also get the rent, which makes it a nice deal from his point of view.
however if the contract specify a date of completion you most probably has a good reason to ask for cancellation of the contract, which also mean that you can make an application to the administrative office and get back the stamp duty which you paid, the only problem is that most probably you will need to go to court to do it.
 
Thank you for your advice I will certainly take it on board. The 30% the developer is willing to pay “is gratuitous and puts no obligations on me whatsoever” I’m wondering if this statement is true! There’s 6 blocks which are being renovated one at a time moving tenants around while the work is in progress. The apartments are in a good location and renovation work was in progress in one of the blocks when I visited in March 2005. The completion date for my apartment was December 2006, since then it’s been a moveable feast. I’m told the block I’m buying in is to start in November. About the Lawyer as I have paid 1.5% of the cost to him I thought that he would also be working for me. It looks like I’ll need independent advice. I’ll look for the recommendations in a while.
 
I guess 30% of the rent on a 30% deposit is not so bad but it's probably a good idea to gain control of the situation and get the new dates in writing. Having a good independent lawyer on your side is invaluable in situations like these. In addition, keeping an eye on the actual progress is vital. What is the exact address? I might be in the area next week.

Gellert Hill is a great location and should rent quite easily. If you bought at the right price, then you should do well over the mid to long term.
 
many people are making the same mistake about the lawyers. when you buy a re sale apartment you bring your own lawyer, you are paying his fees and he supposed to prepare the contract to reflect and represent your interests.
when you are buying from a developer, he will "provide" you with a lawyer that have prepared the contract on behalf of the seller and is reflecting the seller interest in many ways. even if you are the one who is paying his fees he will never be "your" lawyer, all the respectable lawyers that I met who are working with developers are charging the developer in order to avoid conflict of interests
 
An independent lawyer may be the answer, but can I not make use of the original lawyer, as I can’t see much to gain by getting another lawyer to look at the contract. It seems to be pretty standard. If I pulled out before the completion date I would lose a large percentage of my deposit, but there’s nothing about if he doesn’t complete on time. Can I not go back to the original lawyer and ask for a definite completion date or a better deal, and see what he comes up with; after all I did pay him.
 
the lawyer that prepared the contract is the developer lawyer, despite the fact that you paid him, he will not make any effort in your direction.
you are risking the possibility of loosing 10% if you pull out (hoping that you will get back the extra 20% that you paid) or paying 1% of the cost to another lawyer to act for you and try to make a settlement...
 
Re.Gellert Hill, I agree totally with the other guys .I was in a similar position , got the mushroom treatment for 12 months , I got a good attorney and am now getting all my money back.
 
Thanks Lee-m & Budapest.
If I accept the 30% rent will I be breaking the contract, or is this something I would have to talk about with another lawyer first. This is where I need you to recommend a good independent lawyer.
 
accpeting the 30% might be sort of accpeting the delay .. check it carefuly before you agree
 
Hi,

I've just been reading this thread. I am in a similar position and want to get my money back. I was wondering if anyone could recommend a good independent lawyer.
 
I too could do with a good independent lawyer ..... and accountant for that matter .........

One more PM for me?
 
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