New Developments

As the term implies it is a Development that is either Completed or is still under Construction. There should be a Sales Office on site where you can see the Plans and Permissions that have been granted. Normally, a Show Unit will be on display where you can see the actual finished goods that will be installed into the property – kitchen, work surfaces, bathrooms, windows, AC/Heating and showing which units have been sold and which are still available. The Promotor will have a structured Pay Plan – starting with a Reservation…which effectively removes that property from the Market. From that point on and depending upon how far Construction has progressed you will be informed as to how the Stage payments are to be made until Completion. – the other Option is Off-Plan

Things to bear in mind with All New Developments and Off plan

In 2008 there was a Property crisis where many Developers went under, taking the Clients monies with them. Since then, Banks offer guarantees (avales bancarios) against this possibility. Before you sign anything with the Developer, it would be beneficial to get one of these guarantees from your bank for your individual property, rather than a collective one for the whole development, as it will offer more protection.

The Developer is now also required by law to secure all deposits with a Bank Guarantee once the planning permission is granted. You or your Lawyer can check the planning permission either with the developer themselves or on the Land Registry, to make sure that the developer has all the legal paperwork in order and the land they are building on really is registered to them.

Only once you are positive that everything is in order should you sign a contract, ensuring that it contains the amount to pay and the deadline for completion of the construction work. After the building is finished, you will be issued with a finalisation certificate (certificado final de obra) from the seller, and a license of first occupancy (licencia de primera ocupación) meaning it’s safe to live in.

If there do arise any problems with the developer, such as them not completing the work in time, or not meeting the standards stipulated in the purchase agreement, you are entitled to either extend the deadline or rescind the contract, having all your deposits returned to you with interest.

Do everything properly and don´t cut corners and you should have exactly what you have expected.