Due to the high demand for new builds, most buyers purchase properties ‘off plan’ from Spanish property developers. This means that the buyer chooses a property based on the plans and specification, and then choose which home property they want within a particular development.
Typically, buyers of new buildings make regular instalments during key stages of the development (as opposed to paying for the property when it is complete), and an initial deposit of 5% to 10% of the purchase price. The initial deposit and regular instalments vary from one Property Developer to another. If you are buying a new property you do not own the property until the work is completed and you are in receipt of the relevant certificates.
Note: If you have to make regular stage payments to the Spanish property developer you should ensure that you receive bank guaranties for each payment. These bank guarantees protect you in the unlikely event that the Property Developer has financial difficulties before the property is transferred to your name.