Topcat,

Sorry to hear about your plight.

The problem is quite simple.

They have to apply for a mortgage based on the evaluation of the unit you bought. The payment terms are typically 30/70. If a company over values it's own properties, or those it sells for other developers, then it is ONLY the client that stands to lose.

Eg. Property offered at Euros 1,000 sqm and is 50sqm = Euros 50,000.
You pay 30% = Euros 15,000 so balance is Euros 35,000
Normal mortgage company will offer a 70% LTV (Loan to Value) = Euros 35,000. In this cae the mortgage would be covered.

However, at the time of the valuation, the bank say's the property is only worth Euros 700 sqm or Euros 35,000 in total, and will only give a 70% LTV of that figure being Euros 24,500

You need Euros 35,000 and now have a shortfall of Euros 10,500. BAD DEAL all around.

Financial advisers will keep 'shopping' around (if they can be bothered) to try and find the elusive deal, and you will not get what you were promised. Please note that this is not the case with all FA's. Some are very helpful, and will work very hard for you.

The crying shame is that there are many instances of people selling their properties at prices they know are inflated. Again, some developers and agents work to high ethical standards, and do their utmost to maintain a credible operation.

I saw Perun Lodge today, and it looks as though it may be finished in Nov/Dec.

Take a close look at your contract and see if gives you room for recourse.

Also be advised that you are not required by law to pay the remaining 70% until ACT 16 is obtained. It is only a 'normal practice' for the balance to be demanded after ACT 14 or ACT 15, but not law.