Off-plan or finished new build
Buying off-plan means paying in stages while the building is designed or built. Buying a finished new build is closer to a resale, but from a developer and with new-build warranties. Off-plan carries the most risk, because your money is at stake for months or years before there is anything to register in your name.
What has to be in place before you pay
A guarantee for every payment
Money paid before completion must be protected by a bank guarantee or insurance, paid into a special account, so you can recover it if the project fails.
The building licence
The project should have its licence before you commit. A project “pending licence” is a different, riskier purchase.
The specification schedule
The memoria de calidades — materials, finishes, appliances — must form part of the contract, with limits on what the developer can change.
Delivery date and what happens if it slips
A firm date, and what you can do if it is missed: penalties, terminating the contract and getting your money back.
The developer’s mortgage
Many projects are financed with a loan on the whole building. Check whether you will take over your share or buy free of charges.
Who the developer is
Its track record, its finances and the registry position of the land. A contract is only as good as the company behind it.
The contract the developer hands you
Developers work with standard contracts drafted in their favour. It is common to find wide room to change the plans and finishes, delivery dates with no real consequences, and costs passed on to the buyer. Standard does not mean non-negotiable, and some clauses would not survive a challenge — but you only find out if someone reads the contract before you sign it.
Taxes
A home bought from the developer pays VAT plus stamp duty, not transfer tax, and part of the VAT is paid with each instalment. See costs and taxes of buying in Valencia.
Before you take the keys
- Occupancy documents. The home should be legally habitable before the deed is signed.
- Ten-year structural insurance. Required for new homes, and it protects you against serious structural defects.
- The snag list. Go through the home before signing and put every defect in writing. Signing without reservations makes later claims harder.
- Warranties. Building law sets warranty periods of one, three and ten years depending on the type of defect.
This is the map, not the route
Every development and every developer contract is different. What you can negotiate, and what you must refuse, depends on the specific project — and it is much easier to fix before the first payment than after.
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