Buying an off-plan home — when it is not yet finished — combines excitement with reasonable doubts. You are investing in something that does not yet physically exist, which can raise questions such as: is my money protected?, what happens if there are delays?, and what if what was promised is not delivered?
The good news is that in Spain you have very clear rights as a buyer of a home under construction, backed by law. Knowing them is key to buying with confidence and avoiding problems. The good news is that in Spain you have very clear rights as a buyer of a home under construction, backed by law. Knowing them is key to buying with confidence and avoiding problems.The good news is that in Spain you have very clear rights as a buyer of a home under construction, backed by law. Knowing them is key to buying with confidence and avoiding problems.
What does buying a home under construction mean?
It means acquiring a property before it is completed, usually through a private contract with the developer, making advance payments during construction.It means acquiring a property before it is completed, usually through a private contract with the developer, making advance payments during construction.
Precisely because of that advance payment, legislation specially protects the buyer, requiring the developer to comply with a series of guarantees.
Your rights as an off-plan home buyer
1. Right to receive clear and complete information
Before signing, the developer must provide you with all relevant information:
- Plans and specification of finishes
- Usable and built area
- Total price (including taxes)
- Method of payment
- Estimated delivery date or deadline
- Building licence and planning status
This information is not optional or indicative: it must be truthful and binding. If the developer advertises particular finishes or features, they are obliged to deliver them. This information is not optional or indicative: it must be truthful and binding. If the developer advertises particular finishes or features, they are obliged to deliver them.This information is not optional or indicative: it must be truthful and binding. If the developer advertises particular finishes or features, they are obliged to deliver them.
2. Right to have amounts paid guaranteed
If you pay money before receiving the home, you have the right for those amounts to be protected by means of:
- Bank guarantee or surety insurance Buying an off-plan home — when it is not yet finished — combines excitement with reasonable doubts. You are investing in something that does not yet physically exist, which can raise questions such as: is my money protected?, what happens if there are delays?, and what if what was promised is not delivered? Bank guarantee or surety insurance
- Payment into a special account designated for construction Payment into a special account designated for construction Payment into a special account designated for construction
This means that, if the home is not built or not delivered on time, you can recover your money, normally together with the corresponding statutory interest. This means that, if the home is not built or not delivered on time, you can recover your money, normally together with the corresponding statutory interest.This means that, if the home is not built or not delivered on time, you can recover your money, normally together with the corresponding statutory interest.
It is one of the most important rights in off-plan purchases and, at the same time, one of those it is most advisable to verify before signing.
3. Right to receive the home within the agreed deadline
The contract must record a delivery date or, at least, a sufficiently specific deadline.
If the developer is delayed without justified cause, you may:
- Demand performance of the contract
- Claim compensation for damages
- Terminate the contract and recover amounts paid, in the most serious cases
In other words, the delivery deadline is not a minor detail: it is an essential part of the purchase. In other words, the delivery deadline is not a minor detail: it is an essential part of the purchase..
4. Right to receive the home as agreed
The home must be delivered as described in:
- The contract
- The signed plans
- The specification of finishes
- The development's advertising
If significant changes occur in layout, materials, areas or installations without your consent, you may claim for breach.
You are not buying a general idea, but a home with specific conditions.
5. Right to a public deed and registration
Once construction is finished and legal requirements are met, you have the right to:
- Sign the public deed before a notary 5. Right to a public deed and registration Sign the public deed before a notary
- Register the home in the Land Registry Register the home in the Land Registry
This is what consolidates your legal position as owner and gives you full security over title to the property.
6. Right to claim construction defects
Your protection does not end when you are handed the keys. The law establishes different guarantees according to the type of defect:
1 year: finishing defects
Problems with paint, floors, tiling, joinery or finishes.
3 years: defects affecting habitability
Damp, poor thermal or acoustic insulation, failures in installations or problems affecting normal use of the home.
10 years: structural defects
Damage affecting foundations, columns, beams, floor structures or structural elements. These are usually covered by the ten-year insurance. Damage affecting foundations, columns, beams, floor structures or structural elements. These are usually covered by the ten-year insurance..
If you detect faults, you may require repair within the legal time limits.
7. Right to choose financing
If the property has a developer mortgage, you may:
- Take over that financing
- Or arrange your own mortgage with another bank
The developer cannot oblige you to accept particular financing.
Legal framework protecting the buyer
Purchase of a home under construction is backed by several rules, including:
- Law 38/1999 on Building Regulations (LOE)
- Law 57/1968 on guarantees for advance paymentsLaw 57/1968 on guarantees for advance payments
- Royal Legislative Decree 1/2007, General Law for the Defence of Consumers and UsersRoyal Legislative Decree 1/2007, General Law for the Defence of Consumers and Users
These rules recognise non-waivable rights for the buyer and establish clear obligations for the developer.
Developer's obligations
For your rights to be fulfilled, the developer must:
- Hold a building licence
- Provide truthful and complete information
- Guarantee advance payments
- Respect agreed deadlines and conditions
- Deliver the home in accordance with the contract
- Provide the documentation necessary to execute the deed
If these obligations are breached, you may claim through out-of-court or judicial channels.
What to do if your rights are breached
If the developer does not comply, you may act in several ways.
Out-of-court claim
This is the usual first step. It allows formal record of the breach to be made and an attempt to resolve the conflict without going to court.
Enforcement of the guarantee or insurance
If the home is not built or not delivered, you may claim repayment of amounts paid.
Judicial proceedings
If there is no amicable solution, you may bring a claim for:
- Breach of contract
- Termination of the contract
- Claim for damages
- Construction defects
In such situations, having a lawyer specialising in property law is usually the best way to protect your position. At Martínez Sanz Abogados we can put a lawyer at your disposal.
Tips before buying a home under construction
To reduce risks and buy with greater peace of mind, it is advisable to:
- Review the contract carefully
- Check that a building licence exists
- Require the guarantee or insurance for amounts paid
- Verify the developer's solvency and track record
- Keep all documentation, advertising and communications
- Do not rely only on verbal promises: always ask for everything in writing
Good prevention at the outset can save you many problems later.
Frequently asked questions
Can I recover my money if construction is not completed?
Yes, if the amounts paid are duly guaranteed by bank guarantee or insurance, you can claim their return.
What happens if there are delays in delivery?
It will depend on the seriousness of the delay and what is agreed in the contract, but you may claim, request compensation or even terminate the contract.
Is a bank guarantee or insurance mandatory?
Yes. The developer has a legal obligation to guarantee amounts paid on account.
Can I modify the home during construction?
In many developments changes are allowed, but this depends on the developer and the stage of construction. What matters is that any modification is documented.
