Off-plan sale or under construction

  • Last Updated on Thursday, 04 June 2020 09:49
  • Written by Maria Santos Acedo


One of the ways of acquiring a new home is the off-plan sale, in which the client contracts a construction project. A contract is signed between the developer and the client establishing the delivery terms, the quality of the materials and the payment terms. It's very important that there are granted the propper bank guarantee to the promoter.



On the one hand, it is an option that offers advantages, including the option of being able to make slight modifications to the plan and the guarantee of buying a completely new apartment. In practice, payment terms are usually lengthened, which means that, normally, lower fees can be set than buying a built home.aufspanisch02

However, it is an option that also poses a few risks for buyers. The purchase of a home under construction involves the early payment of a series of amounts on account of the final price, so it is convenient to take into account a series of recommendations so that we can recover the money invested, in the event that the home does not start or deliver within the agreed period.

For the off-plan or under construction purchase to be carried out satisfactorily, it is important to establish some basic legal precautions.

On January 1, 2016, the date on which the reform of the Law on Building Ordinances (LOE) came into force, there was a legislative change since it determines that the amounts delivered on account will only be insured once it has been obtained the building license to start the promotion. And for this it will be necessary "a surety bond signed with insurance companies duly authorized to operate in Spain, or by means of a solidarity guarantee issued by duly authorized credit institutions", as stated in the law.





Guarantees for buyers:

- Requirement to issue and maintain a guarantee in force for all the anticipated amounts, including applicable taxes, increased in the legal interest of the money from the delivery of the advance to the expected date of delivery of the home.

- If the construction is not carried out, or is not carried out in the established time, the insured may claim from the insurer the payment of the corresponding compensation.

- Regarding the term to claim and demand liability from the guarantor, it is reduced to two years.

- Executive nature of the guarantee or insurance contract disappears.

- Regulation of the cancellation of the guarantee is modified.

- Failure to comply with the obligation to provide a guarantee will result in a penalty of up to 25% of the amounts to be insured and, in addition, the corresponding violations and penalties will be imposed on the developer.


All Due-Diligence, as we offer from our firm, should contain at leat the following points:

- Study of the legal situation of the developer in the Commercial Registry.

- Study of the legal situation of the land in the Land Register.

- Building permit.

- Plot plans, building specifications, price and payment method.

- Contracts to sign.

- Study of possible unfair terms.

- Possible responsibility of the promoting entity.

- Tax aspects.


For more information, please contact us by mail or phone.




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(+34) 951 12 00 69
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