Buying ‘Off Plan’ Mallorca
Buying an off-plan listing in Mallorca / Spain, inevitably involves a higher risk than buying a re-sale listing.
If you are considering buying an off-plan listing or listing under construction there are a number of points you should be aware of:
- do not make any payments to the developer or others without a bank guarantee
- ensure that the sales contract you sign with the developer states their obligation to return all advanced amounts plus interest to the purchaser, if the construction is not started or is not completed within the deadline stated in the contract, or if the habitation certificate is not granted.
- check the terms of the bank guarantee thoroughly before making any payments in respect of the listing
- ensure that the financial institution issuing the guarantee is authorised to offer financial guarantees in country before making any payments – contact an independent local lawyer/financial adviser to confirm this detail for you
- when making stage payments, keep copies of any receipts detailing the exact amount you have paid
- keep copies of all documentation relevant to the purchase of the listing and the obligations of the developer in case the listing is not completed and you need to execute the bank guarantee
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