As you know, real property under construction is always cheaper than a completed property, and the variety of room layouts is greater in this case: it is possible to always choose apartments for sale in Torrevieja with attractive views and choose the most suitable floor. Spanish real property is no exception. Let's talk in more detail about the specifics of the procedure for buying such real property.

Convenience of payment

Spanish construction companies offer to acquire housing in a property under construction on favorable terms, including the possibility to pay for the purchase in installments. As a rule, it is enough to make an initial payment in the amount of 40% of the housing cost, while even the initial deposit can be divided into equal payments, that is, make it in the form of installments. The buyer can pay the rest of the amount after the commissioning of the property. 

Bank guarantees

Purchase of an apartment in an unfinished building is a very risky step, because there is a possibility that the construction will not be completed on time or the house will not be completed. This happens everywhere in all countries. To protect buyers from disreputable developers and unforeseen circumstances, the Spanish government created a law that talks about bank guarantees.

In Spain, bank guarantees are a kind of insurance payments for real property under construction. In case of non-completion of construction or completion at another, later date, the buyer has the right to return all his money, including interest accrued during this time. If the developer declares its bankruptcy and submits an application to the appropriate authorities, the payments made by the buyers do not burn out, but are protected by bank guarantees.

When buying real property, the buyer pays a bank guarantee in the amount of five thousand euros to the construction company or real property agency. These guarantees cover your initial reservation fee for your chosen property, all fees, taxes and interest. The guarantees come into force when the developer company receives a document giving the right to build a residential property. If you paid the down initial installment and other payments before the construction company received a building permit, then your payment will not be protected under this guarantee.

Cases when bank guarantees are invalid

Bank guarantees become invalid at the moment when the developer obtains an LFO license. LFO License in Spain is the certificate issued by the the Mayor's office. It is issued in the event that a newly built property fully complies with all planning and construction standards and is suitable for use as a living space.

Also, bank guarantees cease to be effective when the construction company announces that it is transferring the property to the buyer.

In the event that the buyer does not want to notarize the transaction, as prescribed by law, the bank guarantees also become invalid. 

Assistance in the selection of housing in Spain

If you are interested in purchase of a housing in a building under construction in Spain, but you are worried about the risks, we advise you to contact the property agency Spain-Real.Estate. The agency staff will select properties for you from reliable construction companies in Spain and will help you acquire housing on favorable terms. The company's catalog contains villas, land plots, as well as apartments both in buildings under construction and in completed projects.