Buying off-plan in Spain: what to check before handing over money

Buying off-plan means committing, and usually paying part of the price, before the home exists. The law protects buyers, but check that this protection really applies in your case.

Advance payments

The Building Act requires the developer to guarantee the refund of sums paid, plus legal interest, from when the building licence is obtained. This can be through a surety insurance or a joint bank guarantee.

• You should receive your individual guarantee document when signing.
• The money must go into a separate account used only for construction.
• The guarantee ends when the occupancy licence is issued and the home is delivered.

What to ask for

• The building licence and the status of permits.
• The specifications and plans that form part of the contract.
• The delivery date and what happens if it is late.
• The payment schedule and the terms if you cannot get a mortgage.

On receiving the home

Inspect the finishes calmly and record defects in writing. Guarantee periods of one, three and ten years apply depending on the type of damage.

Have an independent lawyer review the contract. The standard forms are drafted by the developer.