COMMUNICATION 121 PUBLIC AUCTION PW PARKING SPACES IN BUILDINGS
|Dear Owners, |
The Court will very soon be considering another auction of assets owned by Polaris World (PW), and it includes the parking spaces owned by PW in the buildings in HR.
A working group of Steven Nicholson (PP1), Philip Kirwan (PP3), Sheila Richardson (PP5B) & Patrick Flynn (PP6), has been set up to assist and give an introduction and notice to the owners, and possible purchasers, wishing to acquire a parking space, through the forthcoming auction, as and when the relevant information is available.
It must be stressed and clearly understood that it is recommended that you seek legal advice, pertaining to your actual situation and interests. Anything we impart to you, either in person, or generally, does not have any legal standing in the Spanish courts and cannot be construed as legal advice.
GENERAL INFORMATION RELATED TO THE PUBLIC AUCTION There is a registration fee which is 5% of the announced value of each property, that you are interested in bidding for. The registration and deposit enables single persons bids, and or bids on behalf of a building. The auction takes place electronically on the internet, and your bid will be recorded and accepted in the auction process, once you have registered. The final cost of each garage space cannot at this time be determined, but as a general guide, it will be: The amount of the final auction bid price. Plus 8% transfer tax to be paid to the “Comunidad Autónoma de Murcia”. Plus the municipal excise (plusvalía) Plus any legal costs involved to enable formalisation and registration of ownership. At this stage we do not know whether the bid will be open (bids are published and made public) or closed (bids are not published).
INDIVIDUAL PURCHASERS We know that some owners and/or individuals are interested in the purchase of a second garage space. If this is your case, due to the complexity of the auction process it is strongly recommended that you contact your lawyer or legal advisor to deal with the bidding process.
BUILDING COMMUNITIES It is always a possibility that the building, via the Building President (BP), and a vote from the owners, will wish to purchase any spare garage spaces, that might be available in their buildings. These garage spaces, if purchased by the building, would then become common elements, (meaning that the ownership is shared by all in that building). In this case, the steps to follow are: An EGM has to be called by the BP. There will be 2 main points on the Agenda: Approval for the community to participate in the auction and to acquire PW’s parking spaces. Approval for the adjustment and change of the coefficient of participation of the apartments of the building by integrating the coefficients of the parking spaces from PW. Item one will be subject of the approval of item 2. Unanimous agreement would be needed by all the owners in the building. As it is likely that not all the owners attend the EGM, the vote is taken from the attendees and represented. Those owners not attendeed nor represented will have 30 days from the date the Minutes of the EGM are sent to vote against. No answer, will mean that they are in favour of the proposal. If approved, MS-Lawyers will be the lawyer representing the buildings that choose to bid in the auction for the acquisition of PW’s parking spaces. Once the building wins the auction and becomes the owner of the parking spaces, the process for the change of ownership and conversion of the parking spaces into common areas is quite complex and involves the corresponding expenses from: 8% transfer tax – based on the final value of the parking space. Plus the municipal excise (plusvalía) which will not be relevant ie 200 to 300€. Lawyer, Notary and Land Registry for which the estimation is for a cost normally between 4.500€ to 7.500€, depending on the apartments in the building, the parking spaces acquired, the value of acquisition, and the specific registry circumstances of the building, and the criteria of the Registrar. When this happens and if the building finally decides to go ahead with the purchase, closed costs would be provided to the buildings.
Bear in mind that in order to convert these private areas into communal areas, the title deeds of the acquiring building would have to be modified, thus increasing the participation coefficients of each owner with the consequent increase in the annual community fees. It will also affect the IBI (Town Hall tax) that each owner pays on a yearly basis to the Town Hall of Murcia.
COSTS INVOLVED Given that the main cost is the value of the parking space, and this is not known until the auction is over, it is difficult to give a figure without being misleading. However, the legal costs (including managing the bidding, acting in front of the Court to get the award, paying and managing the Property Registrar, declaring and paying the municipal excise and the Transfer Tax, paying the Notary in the Building Community case) could be in the region of: Estimated Individual Purchasers per space: around 1.000€ plus taxes depending on the value of the parking space acquired, and the specific registry circumstances of the building, and the criteria of the Registrar. Estimated Building Communities: from 4.500€ to 7.500€ plus taxes. With the provisions above. Once the interest is shown by specific buildings, the costs will be specifically refined for those interested.
In either case Power of Attorney would have to be granted to act in front of the Court asking for the delivery of the award, to pay the taxes, and to act in front of the Property Registrar. The cost of the Power of Attorney in Spain is in the range of 60€, while in UK can be up to 300 to 400€ plus courier.
For the buildings, the cost will depend on the number of parking spaces as each garage has as it goes from 1 to 4.
Please find in the link below the list of buildings, with their corresponding address and the number of parking spaces they have.
List of buildings & number of PW parking spaces
OTHER QUESTIONS & ANSWERS
1. Why a building might be interested in purchasing the PW parking spaces to convert them into communal areas?
These garage spaces will probably go to public auction, meaning that anyone can bid for them. It is not solely for the owners of the resort, but for anyone that might be interested in purchasing a garage space on the Hacienda resort.
2. If my building wants to take part in the public auction with the corresponding costs involved, is there enough money (liquidity) in the building current account to go ahead?
There will be separate and individual communications for the owners of each building with the available liquidity as of the end of August during the month of September. If there is not enough liquidity in your building current account, the only option is to approve a levy (extra payment).
3. What happens to those garage spaces not sold by auction?
They can be sold directly to those making offers accepted by the liquidators and sanctioned by the Court.
4. What happens if a garage space is not sold in the auction and there are no direct offers?
The liquidators may donate it to a NGO.
IMPORTANT: For those buildings with a different Administrator (not under the self-admin system), may we refer you to your building president or your administrator for further details.
Board of the General Community of HRGR