The surge in off-plan property sales on the Costa del Sol shows no signs of slowing down. For those considering this increasingly popular investment route, it’s essential to understand the process.
Here’s a practical guide to buying off-plan properties, covering the key steps to ensure your purchase goes smoothly and securely.
Leer más: Your Step-by-Step Guide to Buying Off-Plan Properties1. Secure Legal Representation
Once you’ve identified your dream property, your first step should be to enlist the services of a qualified lawyer. A legal expert will navigate the complexities of the transaction and safeguard your interests throughout the process.
2. Research the Developer
Thoroughly investigate the developer behind the project. Verify their credentials by consulting the commercial register to ensure their registration details are correct. A reputable developer will provide detailed property plans and a comprehensive report outlining the quality and specifications of the construction materials.
3. Investigate Future Land Plans
It’s important to consider how future developments could impact your investment. Check with the local Town Hall to review land plans for the area. This will help you identify any proposed constructions that might obstruct views or affect the property’s surroundings.
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4. Confirm the Building Licence
The purchase process can only progress once the developer has obtained a valid Building Licence. At this stage, you’ll sign a Private Purchase Contract (PPC) and typically pay 30-40% of the property’s price. The remaining balance, usually 60-70%, is either settled upon completion when the public deed of sale is signed, or paid in instalments with a final 40% payable upon completion. To protect your investment, never sign the PPC before confirming that the Town Hall has issued a Building Licence.
5. Obtain a Bank Guarantee
Before paying any instalments, ensure your lawyer verifies the Building Licence and the provision of a bank guarantee. This guarantee protects all payments made during construction, offering financial security in the unlikely event that the developer fails to complete the project.
6. Conduct a Snagging Inspection
When construction is complete, but before signing the Public Deed, perform a snagging inspection. This process identifies any defects or discrepancies in the property compared to the agreed specifications. You can either inspect the property yourself or hire a specialist company to compile the snagging list on your behalf.
7. Verify the First Occupancy Licence
Finally, check the property has been issued with a First Occupancy Licence (FOL) by the Town Hall. This document confirms the property complies with all planning and building regulations and is legally fit for habitation. Without it, you cannot move into the property or legally rent it out.
Why Choose Soave Property Investments?
Purchasing an off-plan property is an exciting opportunity, but it requires careful planning and professional guidance. At Soave Property Investments, we’re here to simplify the process and connect you with the most promising developments on the Costa del Sol and internationally.
If you’re ready to start your journey, contact us today for expert advice and personalised support. Your dream property is just a few steps away!
