Buying a new rather than a resale property demands a different conveyance process. While a resale property requires the above background checks, purchasing a new property offers different pitfalls.
Legally, a Bank Guarantee must be supplied by a developer to the purchaser to cover the amounts advanced by the purchaser. Whilst this is a legal requirement, it will fall to purchaser’s lawyer to push the developers lawyer into receive written confirmation of the precise level of the guarantee. If a developer can avoid giving this they invariably will. This will leave a gap in your paperwork. The effect of this is to protect the purchaser’s investment should the developer go out of business before the property’s completion.
Obtaining a licence that stipulates you may occupy the property as a dwelling from a builder before handing over any final payment is also crucial. The lengthy procedure of producing documentation by a local Town Hall often means that money may be required before a new owner is in possession of these items. Finally the local town council will provide the purchasing client with a Valor Catastral which is a certificate quoting the value of your property and is required in the payment of your IBI – or local taxes - see below.
© The Rights Group SL 2006 (Marbella)
Mark FR Wilkins
+34 600 343 917
Please note that the information provided in this article is of a general interest nature and intended as a basic outline only. You are well advised to contact a professional for advice specific to your circumstances. Nothing contained in this article should be seen or taken as the writer or publisher providing legal or financial advice.