Quote:
Originally Posted by magbon
I am in the process of exchanging contracts and paying my first instalment this week. The developer has promised a Guarantee of Final Building works known as "Work conclusion insurance" to be sent out individually to clients. Is it normal practice to get it after signing the contract? Or should it be provided before?
What do you HONESTLY think about this development having in mind that similar developments have failed in the past e.g. Lagoa de Coelho.
Also Grupo Sanchez Development in Pitangui recently.
Thanks.
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The company I work for does our own Due Diligence checks on any development we look to take on, including but not limited to legal implications. These checks can take up to 4 months to complete for some developments and as little as one month for other developments.
Grupo Sanchez didn't fulfil the legal requirements we require so we didn't promote it. Lagoa do Coelho passed the legal due diligence however when we visited the location and saw the surroundings we decided not to promote it.
Jacuma has passed the legal due diligence and I've been out there and stood on the ground (and flown over it) and it passed our inspection visit as well so we consider it a safe investment and are offering it to our clients.
The work completion insurance is pretty standard in Brazil - The company who is building the development is insured - As Robh said there were some final minor amendments being done to the infrastructure because of Sol Melias input and everything should be finalised by the end of May with ground movement in June.