March 28, 2018 at 11:28 am #224373
I have seen an off plan property that I’m really interested in. My understanding is that a Bank Guarantee should be offered but the developers say that I will be asked to buy the plot of land and therefore become the owner and they will act as the project managers working with a builder that they have used previously. My guarantee being that I own the plot and further payment will be made in stages upon certification that works have been completed. I came across another developer saying the same thing. I would be grateful for any advice as everything I read says make sure you have a bank guarantee.
April 7, 2018 at 11:47 am #224548
Why take the risk? Search the internet (in Spanish and English – thanks Google Translate) and you’ll find existing villas/townhouses in the area for much cheaper prices. You know 100% what you are getting (especially if you have a survey beforehand!). If its not ideal, you can change it as you wish as most are concrete frame so walls, etc can be moved around. Otherwise you are almost certain to be buying into negative equity.
April 17, 2018 at 5:25 pm #225041Yolanda P. – Ypama AbogadosParticipant
What these builders are offering you it is not a “buying off-plan” business.
They want to avoid the regulation of a buying off-plan, so they offer you a different business.
They sell you the plot and you became “self-developer” (self promotor). This way, they avoid a lot of hustle and responsibilities that will be assumed by yourself.
Being a self promotor is quite a risky business. Never hired them as constructors AND project manager, as this will be like hiring the wolf to look after the sheep.
April 17, 2018 at 6:51 pm #225048
Well said, Yolanda
April 17, 2018 at 8:35 pm #225050
Thank you Yolanda, I guessed it was something like that. Would you advise never to get involved or could it work out OK. The company seem to be very professional and I’ve seen other property of theirs.
April 18, 2018 at 12:44 pm #225051
As Yolanda says, the flaw is in the combination of the Builder and Project Manager. The PM should be ‘policing’ the builder and making sure that all is done correctly and that you only pay for what’s done after it has been done satisfactorily. They also help with the initial specification to remove all the ‘woolly’ bits where it says ‘best quality’ or enables them to substitute one item for another without your prior agreement.
Also, could you get the property built more cheaply using another builder?
Survey Spain surveyspain.com provide independent Project Management services in a number of areas of Spain, where we work 100% for you. Where is the property?
Please contact me direct if you wish detailed information.
Campbell D Ferguson, FRICS.
April 18, 2018 at 6:26 pm #225119Yolanda P. – Ypama AbogadosParticipant
It can work out well, you just need to find good advisers to work for you: lawyer and architect. Both of them should be independent from the people that are offering you the business.
My advice would be to find local professionals, as they should use to deal with the town hall civil servants.
The “complexity” of a construction licence in Málaga, for example, is not the same as the problems you would face to obtain a licence in Madrid, or Barcelona.
April 24, 2018 at 12:27 pm #225175
Thank you very much for your advice, the PM and the builder are not the same, so I’m going for it.
April 28, 2018 at 1:38 pm #225308philocdParticipant
Best of luck with your project.
However, I assume that you have thoroughly read Yolanda’s first post, and that you are happy with taking on the role of “self developer” ?
Presumably this implies that you are also aware of all of the responsibilities and risks that are associated with this role ?
How certain are you that the Project Manager and the builder are not associated in any way, other than from the fact that they have worked together previously ?
You mention that you have seen other properties the PM and builder have completed. Have you had the opportunity to meet the owners of these properties, and discuss the process, and to enquire as to the legal status of their property ?
- The forum ‘Property Questions & Answers’ is closed to new topics and replies.