10 Apr 2024 9:02 AM:

Thanks all for your input/comments.

Thread: Buying an off-plan apartment

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06 Apr 2024 10:26 AM:

Thanks ads (and mariedav) for your comments.

I have spent the last few days looking into the new build/developer. I have contracted a conveyancing lawyer who is currently looking into it and will be advising me.

The building permit is expected to be granted at the end of this year. Naturally, the developer/promoter wants a deposit (€6,600) to reserve the apartment. It's quite a unique build (in an old area of the city) and therefore 70% (12 units) has already been reserved. I assume that the 12 people who have already reserved their units have weighed up the risks and taken the plunge. Also, we (lawyer and I) have been told that the deposit is 100% refundable (for any reason) up until the signing of the purchase contract (end of this year/early next year). We would have to make sure that was written in the reservation contract though.

In situations like this (pre-building permit), do developers sometimes get their own insurance policy to cover the period before being granted a building permit so they can assure the people paying deposits that their money is safe? Or will no-one insure a developer pre-building permit? I wonder if I could offer a lower deposit, perhaps €3,000 (my reasons being that there is no protection on this money)? 

By the way, I have asked my lawyer the above questions (amongst others) and I am waiting to hear back.

I'd be happy to hear any comments/thoughts from the forum users too though :)

Thread: Buying an off-plan apartment

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31 Mar 2024 6:45 PM:

Hello,

I am reaching out to see if anyone has advice/experience in buying an off-plan property in Spain.

I live in Andalucia and I am a permanent (fiscal) resident in Spain. I have my eye on an off-plan construction that is currently 30% sold, with a move-in date of late 2026/early 2027.

Some questions that spring to mind are:

1. Did you deal directly with the promoter or use your own estate agent?
2. Is it common to negotiate on an off-plan property or will the promoter normally wait for someone to come along who will pay full asking? (as in this case, there is still plenty of time for the promoter to sell it before it is ready for occupation).
3. Did you use a lawyer/solicitor to assist with checking the contract paperwork, licenses, planning permission, bank guarantee (aval bancario), etc?
4. If using a lawyer/solicitor, did you agree the fee to be based on a % of the purchase price or a fixed cost? What is a reasonable amount to expect to pay for a lawyer/solicitor when there is no mortgage involved?

Thanks in advance for any advice or comments.

Thread: Buying an off-plan apartment

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