Property Guides and Information for the Costa del Sol, Spain

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The Toolbox: Tips for Buying Off-Plan Property in Spain

Here is a summary of some of the more important points that we feel will help you make the right off-plan property choice:

  1. Mortgage costs: If there is a mortgage on the property direct from the developer, the contract should mention that if you decide not to subrogate the costs of cancellation will be entirely borne by the vendor/developer.

  2. Notary costs: Although the existing legislation does not envisage these costs, check that the Notary Public costs which arise when you complete are to be paid according to the provisions of the Spanish Civil Code and that the plus valia tax is also paid by the developer, since according to the law it is their cost.

  3. Investment: If you are looking to invest in Spanish property ensure that you have the right to resell the off-plan property prior to completion, and that there are no terms in the purchase contract that prevent you from doing this.

  4. Protection: Ensure your lawyer has checked that the bank guarantees or building insurances are in place to protect your deposit money.

  5. Background checks: Ensure that your lawyer has done a full company check on the company responsible for providing the bank guarantees and insurances and checking that the developer is building in line with the permissions and licences prescribed by the Town hall.

  6. Payment and accounts: Ensure that your deposit monies go into a bonded client account so that the developer does not have access to the funds until completion of the property and the signing of the title deed.

April 20, 2006 | Category: Buying Property

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All of the information was researched at the time of writing and publishing these articles and is to our best knowledge correct and up to date. Bright is not responsible for changes that occur through updates in Spanish legislature. Bright is also not responsible for any errors in any of the literature or advice published on this site.