IMPORTANT: New Regulations affecting off-plan property buyers in Spain

THE QUESTION

 Is it safe to buy off-plan property in Spain after 1st January 2016?

Background

In the recent past, one of the most important elements of the huge property bubble consisted in all the new complexes, urbanizations and buildings of apartments which were sold off-plans by the developers to individual buyers.

Normally, the buyer paid a certain amount of money in advance to the developers in accordance to the different stages of the construction which were certified by the Architect. Those payments were made before the house/apartment was completed and the corresponding licenses obtained.

In many cases, the first payment was made when the developer did not even have the building license and there was only a plot waiting for building permission. This was particularly a common practice when the developer was a cooperative and used the money coming from different buyers to buy the land to be constructed.

Buying property in Spain Part III, The private agreement

We are pleased to continue with our posts dedicated to buying property in Spain safely. In this article, we will focus on the private contract of sale/purchase.

In our property industry, it is normal that a private agreement is signed by the parties, seller and buyer, few days or weeks after the reservation deposit was signed and before the public deed of sale is granted with a Notary public in Spain.

Buying Spanish property Part 2 Reserving the propetry

The initial deposit

Now you have seen a property that you really like. You know the place, the location, the facilities, area, the community and as many other items which you consider to be relevant in your investment. This is the house that you would like to buy.

Your agent may request you that you pay a small deposit just to show your intention and to “take the property out of the market”. This is quite a normal practice and the right time that you may consider to engage an independent lawyer or solicitor who will make sure that everything is, at this first stage, in accordance to the different regulations.

Buying Spanish property safely Part 1

Many articles and posts have been published about Spanish property. Our intention is to offer a dinamic and practical guide to make the most of your investment in Spain as well as to advice you to plan in advance for your future as from the beginning of the transaction.

The information contained herein has been provided by Premier law Spain. Details will be shown at the end of this informative article.