Concerns about property purchased in Budapest

A couple of years ago I invested in a property in Budapest, Sun Palace in District III to be exact. It is due to be completed later this year.

Last week I received a letter from the developers stating that they terminated the contract of the builders and their own building company would complete the project.

I have also heard some rumors that the quality of the build has not been great, so maybe this lead to the termination of the builders contact.

I've since contacted the developer to relay my concerns, but I was unable to find out the reason why the builders contact was terminated. I was also told on the phone that my property would be delayed by 3 months.

As you can imagine, I am unhappy with these developments...

What I would like to know is if anyone else (on this forum) has invested in Sun Palace?
Thanks

Mack

mack, I know the project well, engel (the developer) were working with a general constrcution company called balusztrad - they are (the contractor) under liquidation process and all the developments in which they were involved are under delay.
one of the trade makrs of this constrcution company is the quality of their work - which was far from satisfactory at all, you should examine quality with great care when the property will be ready

Hello Mack,

Hope all is well with you. We met a year ago in Budapest when you took a look at the site.

Changes in constructer was taken place in the last summer. The reasonas are not well-know. As lee-m says, liquidation problem of constructor as one potential reason is told. However, financial argument between developer and constructor is a not public reason. It is common in Hungary:

- developer does not pay to constructor on time
- constructor stop working and wait, discuss
- if developer does not pay according to special reason, constructor are leaving
- EXTRA: KIKA, the kitchen provider, stoppod fitting kitchens due to outstanding payment from developer at that time
- I expect liquidation problem in Engel as well...

We do not know what happend. What we know is that qulity, design in Sun Palace I is lower than it was expected. I do not know who made a mistake but I do think the developer did not know unit by unit of used materials and methods of development. We will know more when Sun Palace II is completed.

Your apartment in Tower C. It will not be completed sooner than early 2008. The 7th floor where the apartment is located has not been completed yet. It has a message to you!

Thanks for the replies.

Its more than a year since I signed the initial contract and paid 25% of the purchase price. Is it too late to pull out of the deal?

If I pull out now, I will probably loose my depost, but anything else?

David