Buying Off Plan
Buying off plan - or at some point during the construction process - is a popular option in Spain as the earlier you buy in, the less expensive your total purchase price will be. However, while many homeowners are satisfied with the final outcome, you should be aware that there is always the risk the developer will run into hard times and the building will not be completed.
To cover this risk, builders are required to take out a special bank guarantee that will compensate investors should things go wrong. Before investing in any not-yet-completed project, check on this guarantee and consult with representatives of the bank that is standing behind it.
Once you are sure the project is properly guaranteed, your main concern will be the payment schedule. Usually you are required to make a down payment with subsequent payments due as the project progresses. For example, in addition to the down payment, you might be required to pay 25 per cent of the remainder when the basic structure is completed, 25 per cent more when the floors and some interior work has been finished and so on.
When considering the cost of the new home, don't forget to take into account whether or not the kitchen will be "amueblada", or furnished, and "equipada", or outfitted with basic appliances. It is not unheard of for either or both of these aspects to be left in the hands of the future owner.
A property lawyer will help you check the contract you sign is acceptable, it should contain, for example, a clause that ensures you receive compensation if work is delayed. larger developer in a sellers market are reluctant to make any changes to their standard contract.
A qualified Property Surveyor should carry out the process of “Missing items, Agreed extras, and Defects” (commonly known as snagging), involves inspecting a new building for items missing from the original specification, extras that were agreed upon but not delivered and any visible defects within the property. Timing is crucial since property developers frequently allow only brief visits before signing at the notary. In many cases, there’s no water or electricity connected, preventing a proper check of essential systems. Once you’ve signed and paid, the developer has far less incentive to address your concerns quickly.