Russ, act very very very quickly.
99.9999999% of spanish builders are crooks as as are town councils and mayors.
The developer will be looking at ways to steal your money - so dont be fooled, get an abagado urgently and ensure you are chasing down your deposit.
No spanish developer is every poor, and generally they are rich due to actually fraudulently.
The Spanish government could care a damn about foreigners, as proved by repeated ignorance of EEC reports, comments, threats.
The Spanish Government could not care less whether you are swindled out of your money, they are only interested in achieving more back handers.