Good point, fair enough, so I guess my question is what happened if itās not honorable by Mercan, what would be the fallback scenario?
You could maybe sue them, depending on the wording, but if thereās no money, youāre SOL.
Lots of discussion on this topic if you read through the threads. If you are risk averse, consider IMGA Acoes, portugal stock index. Sure it might drop, but itās probably about as safe an investment as you can make anywhere thatās an actual investment rather than eg bonds etc
For folks who have bought Mercan - has anyone investigated on whatās the exact process to sell our hotel share if Mercan refuses to do the guaranteed buyback (for whatever reason, reasons discussed up thread).
Specially now that the share wouldnāt come with golden visa guarantee after a few months, whatās the process to list/market our 280k/350k share on the Portuguese real estate market, how many thousands euros of seller fees/lawyer fees/sales tax/loss should one anticipate here.
E.g. is it realistic to assume that even if Mercan doesnāt buy back your 280k share for any of the oceanfront/beach resort hotels, after all the fees etc you can recover 250k euro on the private market by having it listed through a Portuguese real estate lawyer?
I doubt it. Would you want to buy 1% of a hotel building where the other 99% is owned by 99 other people? Unless everyone coordinates to sell itās worthless.
1 Like
Hi all, for those applying with or recently applied with Mercan, did they agree to signing a side letter to give a full refund if the government restrictions affect your application? We just got a response from them saying theyāre not doing that anymore.
Iām also curious about the buyback guarantee. Also, did anyone have luck revising the contract language to guarantee the buy back? Thanks in advance!
I recollect someone stating that Mercan confirmed that the side letter is being offered as of May 9th. Is this a more recent information you have? Can you share the date when they stated this?
1 Like
I just got an email back from Mercan saying there are indeed offering the side letter. Our lawyer was talking to someone there who said they werenāt, so not sure how that miscommunication happened.
I had also written to IAS about buybacks and they told me Mercan executed a few buybacks recently, so thats definitely good news. If anyone else heard the same or received the buyback, would love to hear more!
1 Like
Great! Thanks for clarifying back.