In the last few months, our law firm has received many inquiries of clients interested in purchasing a luxury villa in the Costa Blanca. In these cases, our legal advice consistently emphasizes the same key principles. As “consumers”, buyers should not be exposed to issues that normally arise during a construction project. Consequently, a turnkey or “move-in ready” contract is the optimal choice to protect your investment. However, in the consultations received, what was offered to the buyers was different. Our clients were offered the purchase of a plot along with a construction contract. This approach presents several risks that buyers avoid at all costs, to protect themselves from significant problems with a luxury home builder in Javea, Moraira, Benissa, Denia, etc.
Off-plan purchase. Legal guarantees and safeguards.
In an off-plan purchase, as a buyer, all the funds that you pay for the property being built must be, by law, guaranteed by a bank or surety insurance. This results in a higher level of security for your investment. Ensuring that your money is protected throughout the construction process.
If the developer fails to complete the project, there are delays, or the developer goes bankrupt, you are entitled to the return of your money plus interest. This legal safeguard provides peace of mind and significantly reduces the financial risks typically associated with buying property.
¿From the legal point of view, what risks do I assume if I buy the plot and then build a villa?.
If you purchase the land and sign a construction project, none of these guarantees will apply to you. As owner of a plot where the construction takes place, you will be legally considered as a “promoter” or “self-promoter”. In Spain, this role carries extensive legal responsibilities, which differ considerably from those of a buyer in an off-plan or “move in ready” purchase.
As the promoter, you will be responsible for obtaining all the necessary building permits and authorizations from the Town Hall and other local or regional administrations. You must also ensure that the project complies with planning regulations. Any failure to meet these requirements could lead to administrative fines, legal sanctions, or construction halts. In summary, you will bear all the risks associated with the construction process. Including legal liabilities for accidents on the site, compliance with permits, etc.
What key aspects should I verify before buying the plot?.
Before buying a plot, there are several key aspects that must be thoroughly verified to avoid legal and financial complications. Beyond the basic checks such as confirming ownership in the Land Registry and obtaining an Urban Report to verify buildability; you should also ensure that the project you are being offered can be legally built as promised. This means reviewing zoning regulations, and any other administrative authorizations needed for the construction. Remember that, as the plot owner, you will be liable before the Town Hall, not the constructor. So, it’s crucial that all legal requirements are met.
What should I do if I’ve already purchased a plot and signed a contract with a builder?
If you find yourself in this situation, and you have concerns about the contract signed, it is crucial to act promptly. At White-Baos Lawyers we specialize in Real Estate Litigation and Consumer Law, offering tailored solutions to protect your interests. Our experienced team will review your contract to assess whether there may be abusive clauses in your contract. Particularly if you are to be considered a consumer, etc. Do not hesitate to contact us to solve your problems with a Luxury Home Builder.
The information provided in this article is not intended to be legal advice but rather to convey information related to legal issues.
Carlos Baos (Lawyer)
White & Baos.
Tel: +34 966 426 185
E-mail: info@white-baos.com
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