Buying a newbuild property in Spain

  • Red Rose Property Spain by Red Rose Property Spain
  • 6 months ago
  • 0
Real Estate Spain, buying a property in Spain

Buying a newbuild property in Spain

Buying a newbuild property in Spain means different rules. It takes time before you can move into your new apartment or house. Newbuild properties normally are all sold even before the construction has started. When you purchase a new build property in Spain, you can enjoy low-maintenance living for years to come because everything is brand new, from the structure to the appliances you’ll use every day (many builders now include all white goods, such as refrigerators and ovens). This takes the stress out of home-buying and gives you more time to settle in and simply enjoy your new home.

You are able to get a mortgage on every newbuild property in Spain, just click below and try.

Mortgage application in Spain

Buying a newbuild property in Spain, the rules.

In the first stage you will be shown a show property and given information about the proposed development.  The developer’s salesperson will talk you together with us through the timescale of the build and tell you about the fixtures and fittings you can purchase.  At this stage you will negotiate the price and it is very likely that you will be asked to make a deposit payment and to sign a lengthy contract.  The contract sets out the dates by which payments must be made as well as the predicted date for completion of the build.  

It is very important that you do not sign the contract or make any payment until you have consulted your independent Spanish lawyer. Just read our page and we can and will help you with the right lawyer.

Your independent Spanish lawyer will scrutinise the contract and advise you as to the terms, as well as the penalties if you fail to make a payment.

It is a matter of Spanish law that all developers of off-plan property in Spain must provide purchasers with a bank guarantee in respect of all payments made towards the property.  This is to protect you in case the developer should fail to complete the property.  During this stage your independent Spanish lawyer will also consider the terms of the guarantee, including looking into the process for enforcing it.

Only once you are satisfied that you have been comprehensively advised in respect of the terms of the contract should you proceed to sign it and pay the deposit. The depost will normally be around € 10.000

Buying a newbuild property in Spain.

Upon signature of the contract you will have paid a small deposit and within the contract you will have agreed to make further payments towards the property.  These payments will be significantly larger than the initial deposit. It’s normal that during the construction phase a total amount of 30% is paid towards the developer.

It is important that you receive a bank guarantee for each and every payment made towards the property and so you should ensure that your independent Spanish lawyer is involved in this stage.

During this stage arrangements can also be made for the final completion, which will usually be several months in the future.  Your power of attorney can be signed and the application for your NIE can be made. This means that when the property is finished and it is time to complete the purchase you will have everything in place to do so. 

The rules of conduct when purchasing a newbuild property in Spain.

The final stage is reached when the developer has completed the build and registered the property.  You may find that the completion takes slightly longer than you anticipated.  Developers of off-plan property in Spain will usually include a clause within the contract that you sign at the outset in which it is provided that the completion of construction can be extended by up to six months.  This is not usually a negotiable term.  

Prior to completion you should try to ensure that any snags in the construction are identified and rectified, as well as ensuring that the fixtures and fittings are as agreed and up to standard.  It can be very difficult to rectify faults after completion.  Your independent Spanish lawyer can assist you with this step.

It is important to note that within the terms of the contract the developer will reserve the right to mortgage the property.  This is common practice used to ensure that the developer has sufficient cash flow to complete the build.  Your independent Spanish lawyer should ensure that everything is in place for any mortgage to be removed from the register in respect of your property so that you take ownership of the property with a clear title. 

Once the property has been registered you are able to complete the purchase and a completion meeting will be arranged.  You will be obliged to make payment of the balance of the purchase funds at the completion meeting.  Don’t forget that on top of the price of every newbuild property in Spain comes 10% IVA ( tax )

The final stage of an off-plan property purchase in Spain is for the taxes to be paid and for the property to be registered in your name.  Your independent Spanish lawyer can carry out these steps on your behalf.

Purchasing a newbuild property in Spain.

Red Rose Property Spain is a family business based in Caleta de Velez, Malaga and has more websites and we work with the biggest international Real Estate Platforms in the world. Next to that are our social media pages our strongest point.

Avenida de Andalucia 118, 29751 Caleta de Velez, Malaga. Telephone and WhatsApp – +34-602 627 580

As real estate agency / agent in Spain we do offer a full service to our buyers.

When you can’t find what your looking for at this moment then please use our property finders wish list and we’ll get back to you with a possible interesting offer.

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