September 28, 2015 | No Comments YetTags: buying off-plan, buying property in Spain, information, law, legislation, Moving to Marbella, Moving to Spain, News, off plan
New regulations are coming into force for buying off-plan in Spain. Marcia looks at whether this is about to get risky due to changes from 1st January 2016.
With many new off developments becoming available I thought it would be a good to review the latest regulations in Spain for buying off-plan.
On 14th July the Spanish Parliament issued Law20/2015 (published in the Official Gazette July 15th 2015). The new regulation is for the insurance sector, which implies changes that will seriously affect the rights of buyers purchasing properties off-plan
Law 57/68 is one of the most important laws in Spain and ratified in 1999 (Act 38/1999)
These laws operated as a “Consumer Protection”; offering protection for off-plan buyers, from losing monies paid in advance of properties not built/completed or the affects of developer insolvency.
Common practices involved buyers paying a certain amount of money in advance prior to building licence being obtained to developers in accordance with stage payments of construction. These were were certified by the Architect, before the apartments/houses were completed and the licenses obtained.
These payments had to be legally guaranteed by a Bank or Insurance company, even before obtaining the building license, therefore the risk was minimal, because should something go wrong, the buyers payments were protected.
The latest news is that Law 57 /68 will be abolished as from 1st January 2016
The ratified Law 1999 ( Act 38/1999) is to be modified, which will have a great significance to those wishing to purchase off-plan.
In the case a buyers paid monies in advance of a building licence being granted after 1st January 2016, they will not have the guarantee protection.
So buyer BEWARE and always seek independent Legal Advice before you make any financial commitment to purchase off-plan in Spain.