Off-Plan Buyer Protection

Core protections to verify

• Deposits paid into a special, segregated account at a credit institution.
• An individual bank guarantee or insurance policy covering each amount paid, plus statutory interest, as required under the Spanish Building Act (Ley de Ordenación de la Edificación, Additional Provision One).
• The existence and validity of the building licence before payments are requested.
• Clear completion dates, specifications and consequences of delay in the contract.

When a project is delayed or suspended

Delays, administrative suspensions or judicial precautionary measures do not automatically determine a buyer's rights. Remedies depend on the contract terms, the guarantees in place and the reasons for the delay. A careful review of the documentation is the first step before any decision to terminate, claim or wait.

Contract review points

• Who holds the deposit and under what conditions it may be released.
• Developer rights to modify plans or specifications.
• Force majeure and suspension clauses.
• Jurisdiction, governing law and language of the binding version.