Thanks for replying. I was planning to move there when the sale went through.
To answer your questions:
the house is 8 years old;
unsure if it was bought with public subsidies originally as this was not stated on our contract;
In the contract literally said:”Si por el contrario fuera la parte vendedora la causante de la no elevacion del presente contrato, la parte comprado sera indemnizada con el duplo de la cantidad entregada, por los danos y perjuicios ocasionados” as well at the end of the contract is established that “Y para el buen fin de esta operacion entrega como senal y parte del precio”.
I am not 100% sure but I think the agreed prize does not exceed the official, although this a grey area for us because we never were told we were purchasing a VPO house.
Thank you very much for your help!! Really appreciated!