Buying Off Plan advice

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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.

       

      • #225175
        Linda
        Participant

        Thank you very much for your advice, the PM and the builder are not the same, so I’m going for it.

    • #225308
      philocd
      Participant

      Hi Linda,

      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 ?

       

       

       

       

       

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