Buying Off Plan advice

This topic contains 6 replies, has 3 voices, and was last updated by  Yolanda P. – Ypama Abogados 4 days, 18 hours ago.

  • Author
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  • #224373

    Linda
    Participant

    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.

  • #224548

    SurveySpain
    Participant

    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.

  • #225041

    Hi Linda,

    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.

    Kind regards.

    Yolanda Palencia.

    Ypama Abogados

     

     

  • #225048

    SurveySpain
    Participant

    Well said, Yolanda

  • #225050

    Linda
    Participant

    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.

  • #225051

    SurveySpain
    Participant

    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.

     

  • #225119

    Hi Linda,

    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.

     

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