Buying property off-plan

Created: 13.01.2021, 12:36, Updated: 17.02.2025, 14:24

​Buying off-plan property in Spain in 2025 offers exciting opportunities, but it’s essential to approach the process with careful planning and awareness of legal safeguards. Here's a comprehensive guide to help you navigate the journey:​
  • Before You Pay:

    Verify Planning Permission:

    Ensure the developer has obtained the necessary planning permission. This is crucial, as the obligation to secure your deposit with a bank guarantee only comes into force once the developer has this permission. ​


    Secure a Bank Guarantee:

    Spanish law mandates that developers provide a bank guarantee (aval bancario) or insurance policy to protect your deposits. This guarantee ensures that your funds are safeguarded if the developer cannot complete the project.


    Use a Special Escrow Account:

    Confirm that your payments are deposited into a special escrow account designated solely for the construction of the specified development. This adds an extra layer of security for your investment. ​


    Research the Developer:

    Investigate the developer’s reputation by reviewing previous projects for quality and adherence to timelines. Ensure they are registered with the Mercantile Registry, and verify that the individual signing on behalf of the developer has the legal authority to do so.

  • Before Signing the Title Deed:

    Obtain the Certificate of Final Completion:

    Before signing the title deed, request the "certificado final de obra" from the developer. This certificate confirms that the construction has been completed in accordance with the approved plans.


    Acquire the First Occupancy Licence:

    Ensure the property has the "licencia de primera ocupación," issued by the local town hall. This licence certifies that the property is habitable and is necessary for connecting utilities like electricity and water. ​


    Conduct a Snagging Inspection:

    Consider hiring a chartered surveyor to inspect the property for any defects or issues. While not obligatory, this step can help identify problems that need to be addressed before completion. ​


    Review Community and Utility Setup Costs:

    Be aware of initial setup costs for community fees and utility contracts. Unlike resale properties, off-plan buyers may face delays in utility activation.

  • If You Need to Cancel:

    Understand Your Rights:

    If the developer fails to complete the property by the agreed deadline, or if essential services and utilities are not connected, you have the legal right to cancel the contract and have your deposits returned with interest. ​


    Communicate via Burofax:

    To initiate the cancellation, send a formal notice to the developer using Burofax, a service provided by the Spanish postal service that legally certifies the content has been received. Include copies of all relevant documents, such as the contract, payment receipts, and the bank guarantee. ​

    Contact the Guarantee Provider:


    If the developer does not respond or refuses to refund your deposits, contact the bank or insurance company that provided the guarantee. Provide them with all necessary documentation to process your claim. ​

    Seek Legal Assistance:


    Should the guarantee provider fail to comply, consult an independent lawyer to explore legal avenues for recovering your funds. In cases where no guarantee was provided, and you suspect fraud, legal action through the courts may be necessary.

Navigating the off-plan property market in Spain requires diligence and informed decision-making. By following these guidelines, you can mitigate risks and ensure a smoother purchasing experience.

If you have further questions or need assistance with specific aspects of buying property in Spain, feel free to ask!
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