Lifer Inmobiliaria closes its 10 offices in the Gran Canaria Province and "disappears off the face of the earth"

Janet · 27-10-08, 23:51

Another estate agency has closed. Lifer Inmobiliaria has suddenly closed its ten offices in the province of Las Palmas, trapping hundreds of clients who had already begun the process of buying a property and who had paid a deposit to the firm within the last year or so. Several of these clients have denounced Lifer for alleged fraud.

Estate Agency sources say that the administrators (directors) of Lifer "have disappeared off the face of the earth", and that in some cases, the same property had been sold to two different buyers. Even the company's website has stopped working and phones are unanswered.

The Canarian Business Association of Estate Agents has condemned real estate malpractice and says it regrets the situation in which clients and workers of the business find themselves. It appears that Lifer staff have gone three months without being paid. The Association said it was confident that this alleged fraud was an isolated example of malpractice, and reiterated its condemnation of any illegal practices or those which don't treat the interest of clients as first priority. It noted that Lifer had never been a member of the Association.

La Provincia
Canarias7

Periklês · 28-10-08, 07:21

Quote:

Originally Posted by Janet©

The Association said it was confident that this alleged fraud was an isolated example of malpractice

Fraud? By an estate agent? In the Canaries? Impossible!

Chip · 28-10-08, 08:48

Why do people keep letting the estate agent keep the deposits, its beyond me.

Periklês · 28-10-08, 09:23

Quote:

Originally Posted by Chip

Why do people keep letting the estate agent keep the deposits, its beyond me.

Unfortunately, somebody has to keep the deposit, so the purchaser takes some risk whatever the arrangement. The alternatives are no safer - Deposit to the Vendor?

To a Lawyer?

There is no easy answer.

Princess · 28-10-08, 09:24

How about to the bank that holds the mortgage ? If there is no mortgage a holding account.

Sir Old Golfer · 28-10-08, 09:27

Quote:

Originally Posted by Periklês

Unfortunately, somebody has to keep the deposit, so the purchaser takes some risk whatever the arrangement. The alternatives are no safer - Deposit to the Vendor?

To a Lawyer?

There is no easy answer.

I think a lawyer is a much safer bet than an estate agent as most are covered by the Spanish Law society, I would never give a deposit to an estate agent

Periklês · 28-10-08, 09:35

Quote:

Originally Posted by Sir Old Golfer

I think a lawyer is a much safer bet than an estate agent as most are covered by the Spanish Law society, I would never give a deposit to an estate agent

Yes, I agree - the problem is that they all charge several thousand euros for doing very little. It would hurt if you paid, say, 20000 euros deposit and then had to pay 3000 or 5000 more to a lawyer just to ensure that the deposit was safe. Expensive insurance

Sir Old Golfer · 28-10-08, 09:47

Quote:

Originally Posted by Periklês

Yes, I agree - the problem is that they all charge several thousand euros for doing very little. It would hurt if you paid, say, 20000 euros deposit and then had to pay 3000 or 5000 more to a lawyer just to ensure that the deposit was safe. Expensive insurance

Not as expensive as an agent doing a runner with all your money. Our Lawyer charges a set fee for home buying 1200 Euro which includes deposit holding and all searches and paperwork in connection with buying a property.. Cheap I would say for professional advice.

Chip · 28-10-08, 11:11

Quote:

Originally Posted by Periklês

Unfortunately, somebody has to keep the deposit, so the purchaser takes some risk whatever the arrangement. The alternatives are no safer - Deposit to the Vendor?

To a Lawyer?

There is no easy answer.

We insisted on OUR lawyer holding the deposit. We we're selling.
We was only charged €1,000 from start to finish. I think it was worth it from a sellers point of view. Even if its just to stop the estate agent keeping the deposit should something go wrong and it actually go to the seller...it is after all their deposit on their property.

Janet · 28-10-08, 14:55

Quote:

Originally Posted by Chip

We insisted on OUR lawyer holding the deposit. We we're selling.
We was only charged €1,000 from start to finish. I think it was worth it from a sellers point of view. Even if its just to stop the estate agent keeping the deposit should something go wrong and it actually go to the seller...it is after all their deposit on their property.

I think as long as a lawyer is holding a deposit, the important thing is that there is agreement on both sides, less important whether buyer's or seller's lawyer. An alternative is an escrow account, with the deposit nominated in the buyers' names but reclaimable if the deal doesn't complete.

The only reason agents want to keep deposits is that they have easy access to their commission when completion arrives. I have sympathy with their view, because they are not in a strong position to get paid (nor the individual sales agent either, of course) if they don't have the money before signing. They aren't able to stop a sale completing in notary just because they don't have their commission. This is a problem that will always need addressing given that whatever one thinks of them, and whatever they might get up to, those that get clients a sale do deserve to get paid.

I personally wouldn't trust a lawyer any further than an estate agent, especially given what I heard the other day in notary ... as I posted on the Santander thread, the sellers' lawyer walked in and said "don't worry, I'm a lawyer, I can do anything I like, my client will do what I tell him to do". Given the case I had yesterday, this would have actually involved handing money over to a seller prior to notary. Frankly I'd rather trust an estate agent!

The real problem is not that estate agents can't be trusted, but that some cannot be trusted ... and that it is impossible to know which ones. This is where personal reputation and private recommendation are so important.