New development house purchasing process

Off plan, under construction, already completed or second-hand, the moment in which a home is purchased determines the form and deadlines for its payment. This allows the future owner to create a payment schedule and have an exact forecast of when, how much and how the transactions will be made.

In the case of off-plan or new construction properties, the entire purchase and sale process takes around one or two years.

How do you pay for a new construction home off plan?

1º After choosing the property, a fee agreed between both parties must be paid as a reservation. It ranges from 3,000 euros to 15,000 euros, which will subsequently be deducted from the total price of the home.

2º When the building license is in force and construction begins, the reservation will become a private purchase and sale contract. Where the buyer must pay the remaining money up to 10% of the total.

3º During the construction, buyer and seller will agree on the deadlines and the amount of the following installments until the end of the work.

4º Once the construction has been completed, the remaining amount will be paid upon signing the public deed. It can be done through a mortgage loan or bank transfer. Here around 70-80% of the property would remain to be paid, depending on the agreement.

Guarantees in the purchase of a new construction home

Brand new properties have enormous legal protection. Many more guarantees than second-hand ones. The Territorial Planning Law and the different regional and local texts support the entire process of buying and selling a house of this type. From advertising, reservation, payment and subsequent habitability.

The main coverage aims to detect and repair any damage, deficiency or breakdown of the property. The warranty protects up to the first decade.

• The first period (up to six months) is for hidden defects.
• Until the first year, where the owner can claim from the builder or promoter any finishing defects in the works.
• During the first three years, due to elements that affect the habitability of the house.
• Up to 10 years, deficiencies that are directly related to the structure. From foundations, beams, supports or load-bearing walls.

Advantages of buying a new construction home

Purchasing a brand new property is a safe bet. Since 1995, this type of property has revalued annually by around 5.6%, according to the National Institute of Statistics (INE), making it an investment for the present and future.

Although in off-plan properties this increase takes around 1-2 years to be experienced, the performance and guarantees are identical to other newly built homes. They even have some additional features and advantages:

• Choose the home that you like the most. Being one of the first to reserve and purchase a property in the promotion allows us to select from the wide range of possibilities. Penthouse, duplex, ground floor with garden, apartment with views… the options are endless when you are one of the first to make a decision about it. The best houses are the first to sell out, so buying off plan is the best option if you want something different and unique.
• Greater savings. When booking before construction, a lower price than the real price is set. That is, during construction, delays may occur that generate higher expenses, an increase in the price of materials, as has occurred during the past year, and a host of elements that can raise the final price of the homes. By purchasing it before all this can happen, the savings can be between 10-15%.
• Payment facilities. Owners begin to pay between 4-5 years before handing over the keys, which allows them to have almost 60-70% of the house paid for. This means that the expenses and interest when applying for a mortgage are lower and the financial effort during the entire purchase and sale process is lower.
• Customizations on demand. Before starting to build, clients of an off-plan property can make changes to the distribution that, when work has already begun, becomes impossible. They have a greater ability to personalize their home.
  Superior qualities. Photovoltaic panels, thermal floors, quality materials, large windows to make the most of sunlight, etc.