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[b]Costa Developers Breeches P.A.’s[/b][i][/i] If you have a Purchasing Agreement with Costa Developers, S.A.(CD), It has been breeched by them, after they took $160.00 of your money.
Let me explain – I signed three P.A.s with CD’ on April 3,2006 for three lots located at Costa Montana Estates(CME lots 11, 17, 18). I signed two P.A.s for two lots(18,19)at Costa Estirillos on July 29th of 2006.
All three P.A.s, as well as two others for lots at Costa Estirillos, and I believe over 800(for every lot they sold at Costa Montana, Costa Estirillos and Costa Reserva) other’s Point number seven(7) states: ”As its initial Association fee, Buyer agrees to pay US $160 at the time of Closing. Thereafter, an Association budget (the “Budget”) will be distributed to Buyer(the “Budget”). The Buyer understands that the Budget provides only an estimate of what it will cost to run the Association but that the estimated fee should be US $80.OO per month.”
Has anyone received a “Budget” for any CD development at any time after the time of Closing, prior to or after moving into a home at a CD development? Or before the monthly fees were raised? NO.
I was the first resident to move into CME in September, 2008. At that time, monthly fees were approx $80/month. They now are over $180 per month.
I made three requests , once for each lot I own at CME, on multiple occasions, to former CD in-house attorney Andrea Ovares for the “Budget”in 2009. I dId the same of Harry Tola in 2010, one per lot. Mr. Tola was the GM of the property administrator, central pacific coast properties(cpc) at the time those requests were made. My requests never were responded to nor was any “Budget” provided. [b]Breech number one.[/b][i][/i]It’s interesting to note that residents of CME never played a part in choosing, nor had any say in who was the property administrator of their development. There have been three so far.
Not only that, but we never were shown the “Budget” before fees were raised nor were we consulted about the necessity nor given any reasons for fee increases.
The HOA formed by CD, rather than using ten residents of CME, as the National Registry requires, used CR lot owners, not residents, to form the HOA. HOAs, because they are non-profit entities, are suppose to be totally transparent providing residents with financial accountability. Such is not the case with CD and CME.As mentioned earlier, despite many requests to CD’S in house attorney and the one-time property administrators GM over several years, I did not see the “Budget” for the first 29 months I resided at CME. THIS IS A CLEAR BREECH OF CONTRACT regarding the PAs CD signed with me on April 3, 2006.
That was not the only breech of that contract. Point 1 of the Purchasing Agreement states “Seller acknowledges that the infrastructure of the roads and water and electricity to each lot will be in place within eighteen (18) to twenty-four(24) months from the date of the Agreement for Deed.”
I moved in to CME, being the first resident on September 19, 2008. This was 29 months after I signed the Agreement for Deed. I did not have running water for the first 10 days. [b]Breech number 2.[/b][i][/i]The water system is comprised of three reservoirs, a top(3), middle(2) and bottom(1) one. It is designed so it fills up from the bottom up(1>2>3) requiring pumps to do so. Logic and common sense say it should fill up 3>2>1 using the laws of Nature and gravity. Because of this faulty approach, those getting water from reservoir 3 often do not have water or water pressure so low they can’t use showers or water lawns. This has gone on for over two years. Breech number 2.
We regularly receive notices saying the water will be shut off for four or more hours so repairs can be made to the system. In what have been many a continued unsuccessful attempts to get it working the way it should. According to the claims CD makes in their PAs.
Attorneys have informed me that according to Costa Rican and International law, breeched contracts are considered null and void and the party that breeches the contract can be sued for recovery of monies in a civil suit for breeching the contract.If you agree and feel: your PA(‘S) were breeched or any promises made to you by Jorge, Ricardo or any other CD employee(s) were not kept; that you did not receive what you were told you would receive or that the product(s) you received were flawed or defective and CD has failed to meet their contractual obligation to you, please note;- I’ve been working with a CR attorney(who filed a Complaint with the Defensoria de los Consumidors office(see concluding paragraph) and am seeking others to initiate a class action lawsuit against CD and hold them legally accountable for their contractual obligations, claims, promises and statements made to all of their clients . Please contact me so we can discuss taking collective action. Thank you.
It gets better…[b]ROADS[/b][i][/i]. The road infrastructure at CME is crumbling and in a state of deterioration. Thousands of paver bricks are cracking and crumbling. Despite replacing a large section of the Costa Montana Blvd. less than six months ago because it was buckling after the 2009 Rainy season, more large sections of the same road are buckling in multiple spots after only two straight nights of light to moderate rains(see photos). After taking the first right from the main gate (Costa Montana Blvd.), less than 1,500 meters up the hill, the roads are buckling in several spots. With Rainy Season just beginning, it will get considerably worse before repairs can be attempted.[b]
Multiple Construction Contract Breeches[/b]On September 10, 2007, Jorge Jorge Flores signed a construction contract(cc) with me for inclusion in the Advanced Home Building Program. Construction began on my home before the end of that month.
Because CD refuses to reimburse me for monies I’ve spent to repair flaws and defects they are responsible for as contractor and pay me to fulfill all the provisions and terms in the cc Jorge signed with me, including all items in the plans, I plan doing on the following: detailing the Complaint I filed with the Defensoria de los Consumidors office in January, 2010.
It was 97 pages(in Spanish) and contained 14 facts/ points and included 21 supporting documents and 25 supporting photographs. I’ll concude by saying that attorneys for the Defensoria’s office found my Complaint valid, served CD with it and scheduled a hearing to resolve the 12 separate breech of contract claims I made. Attorneys for CD never responded to the Complaint nor did they or any representatives attend the hearing. The Claims were that CD, acting as contractor, delivered a non-properly functioning home full of flaws and defects and breeched the cc, including provisions from it. I will include how they were breeched in my case and that of others who also had houses built at CME.
Hmmm! Sounds like paradise!
I am disappointed but not at all surprised to read this ‘Dad’ – this is a group of people – many of whom were previously affiliated with Paragon Properties of Costa Rica which turned out to be a TOTAL disaster – that we have cautioned our VIP Members about for many, many years.
If any other VIP Member wishes to communicate with ‘Dad’ about this for more information, please feel free to email me at: scott@welovecostarica.com and PLEASE put Costa Developers in the subject headline.
Scott Oliver – Founder
WeLoveCostaRica.comAuthor of ‘How To Buy Costa Rica real Estate Without Losing Your Shirt.’
Forget the class action. This type of thing happens on every project in CR. Yes every project. Some will tell you about their adventures, others won’t, but it happens throughout the country.
Your best option is to file written complaints to the CR lawyers association about the lawyers involved that have treated you like crap. Nothing will happen to them but it will help you get things off your chest.
You can’t win against a developer or contractor in CR. What you’ve described is just how things work in Costa Rica.
[quote=”Scott”] – this is a group of people – many of whom were previously affiliated with Paragon Properties of Costa Rica.
Scott, Where do you get this information? I have had extensive dealings with Costa Developers and know that nobody at CostaDev. was involved with Paragon Properties at least since 2007 or later.
Yes there are some problems but CostaDev. has not disappeared, maintains a real office with real staff in Escazu and has completed Costa Esterillos (some issues remain but more or less complete) where about 15 homes have been built by lot owners.
Costa Reserva is behind schedule but infrastructure is coming along slowly. CostaDev. has been affected by the economic crisis but still continues with new investors involved since November/2010 to give things a boost.
Cannot comment on Dad’s experience at Costa Montana but I do know that many issues present real challenges with the top management at CostaDev. who move to the beat of their own drum. At least they haven’t folded or disappeared like most others in the area and there is somebody to deliver the legal papers to!![quote=”Bill55″]Forget the class action. This type of thing happens on every project in CR. Yes every project. Some will tell you about their adventures, others won’t, but it happens throughout the country.
[/quote]Sorry Bill55 but this type of thing does NOT happen in “every project in CR.”
Scott
The members of “Costa Developers Owners Forum” @ http://208.115.49.244/fluxbb/viewtopic.php?id=66 are following this thread with keen interest and I have encouraged them to subscribe to ‘WeLoveCostaRica.com” and participate to correct the negative image that has been portrayed of CD
BTW
I always suspect someone intentions who registered on the forum and their first post is a negative one. I not saying their intentions are necessarily bad. Just that I go ‘hummmm”I was hopeful that more informed owners from the other CD properties would have commented but since they didn’t I will have to give it a try.
Please note that I am a lot owner at Reserva and I am only reporting on what I have gleaned from the postings from others on the various forum.
First Dad; I hear you and I understand your frustration and anger. We have all to varying degrees wanted to kick some CD butt. But your experience is not a typical one. And I dare say that it’s the kind of experience that one can have in the States with a developer in an under developed area. That doesn’t excuse CD but I give them credit for still being in business given the current economic conditions.
The owners at Esterillos have fired the central pacific coast properties and hired Nova Group. Nova provided a budget and together with the condominium board of directors is working with CD to resolve outstanding infrastructure issues.
The problems you stated provides us all with an opportunity to learnI purchased a “panoramic ocean view” lot in Reserva in 2007. I was supposed to be able to start construction of my new home in November 2009, but to date, infrastructure is not completed. Under the default provision of my contract, I submitted a default notice, both in English and Spanish. As we are now 18 months in default, I requested a repurchase of my lot through “Costa Cares”. The request was presented to Arnaldo Bonilla, and the response was “NO”. Interesting that an “abogado” does not feel any responsibility to comply with his own contractual obligations!
I’m still hoping that I will someday be able to build or resell as a buildable lot!
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