Carlos Baos – Off-plan properties

Off plan properties. Before you buy. Key documents.

Off-plan properties have unique features that distinguish them from previously owned property transactions. The primary difference is that, at the contract signing, the property hasn’t been constructed or terminated yet. In this article, we’ll analyse the issues that off-plan buyers should consider when embarking on such ventures. In particular, we will focus on the documentation that, by law, every developer is obliged to make available to buyers, so that they can examine and review it properly.

In order to protect consumers, the Building Regulation Law establishes significant guarantees for off-plan property purchases. Two guarantees stand out. 1. The separate bank account, where the developer must receive all the deposits paid on account of the properties being built. 2. The money back guarantee (either through the intervention of a bank guarantee or an insurance policy from an insurance company), so that if the construction is not completed within the agreed timeframe, the buyers gets all its money back. This guarantee is obligatory from the moment the builder obtains the building permit from the municipality.

What about the documentation that the buyer can request from the developer?. What documents, plans and papers must the developer, by law, have at the disposal of the buyers?.

By way of summary, the most relevant ones are included below:

• The overall layout of the property’s location.
• Details regarding the usable and built-up area of the property, as well as related components.
• The floor plan of the residence itself.
• A comprehensive breakdown and arrangement of the electrical, water, gas, and heating systems.
• Measures for fire safety within the property.
• Comprehensive overview of the building, communal areas, and additional services.
• Inventory of materials utilized in the construction of the residence, encompassing thermal and sound isolation, as well as materials used in communal areas and additional services.
• Specifics identifying the plot where is being built in the Land Registry.
• Total property cost and payment methodology.
• Complete particulars of the developer and constructor.
• And so forth.

Off-plan property purchases can be a secure option in Spain if all legal provisions are met and complied with. If you’re considering an off-plan purchase, our team at White-Baos Lawyers can assist you in the process. Feel free to reach out to us for more information.

You may be interested in the following services and articles:

Investors. Purchase of multiple properties off plan. Can the money lost be recovered?. Law 57/1968.

Claim compensation in the purchase and sale of real estate properties in Spain. Handing over a smaller property..

Careful with changes concerning the guarantees on purchases of properties off plan.

Carlos Baos (Lawyer)

White & Baos.

Tel: +34 966 426 185

E-mail: info@white-baos.com

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