– Buying off-plan: In the majority of the cases, the first agreement for the purchase of the Spanish properties is done when the construction is projected, and works are not started yet.
Off-plan projects demand a long term purchase/construction process which may create insecurity in the investor’ side, specially when they have to deposit and pay amounts of money in account of a final price of a property when, on that moment is only a “project”. This uncertainty is even higher when the buyer/investor does not know essential aspects of the project as: the Builder´s reputation or credite score, the economic situation of the building’s project, etc. And, the most important, which kind of guaranties are offered to secure the required payments in case the project is not finished.
In order to reduce the risk of the investment, we have prepared a list of aspects to consider when buying new properties in off-plan projects:
– Legal and Administrative construction documents: When buying a new property, there are several documents which must be studied and properly checked in order to control the legal situation of the plot and building, and the proper development of the construction.
This is a task which must be done by recognized and construction specialist lawyers, and it must be done in every step of the construction process: From the earliest steps of the process till completion. So, in every step, there are documents and information which must be supplied and obtained from the purchasers, or by their lawyers, in order to confirm that all the legal and administrative requirements are fulfilled properly.
– Expenses, taxes and other costs: Although, in general, the process of acquiring new properties is nearly the same than buying a resale, there are determinate costs, taxes and expenses which have a different concept and treatment.