“AFTER THE PROPERTY HAS BEEN BUILT,


THE NEW CONSTRUCTIONS MUST BE REGISTERED IN THE LAND REGISTRY.”


obliging you to sign into a mortgage loan the promoter has taken or requesting you to sign up for accessory services. • When a payment has been made to the promoter, the buyer must make sure that the money has been deposited in a special bank account that can only be drawn on the construction project, plus proof that there is an insurance policy or bond / bank guarantee, ensuring that the money will be refunded to the buyer if the building is never constructed or delivery is delayed.


Buying a home off plan I


t is obviously quite difficult to carry out any physical inspection when the property is still in the planning stage.


Te only description the buyer will obtain will come from the developer or the promoter together with the plans that must be handed over to you, with the exact measurements, boundaries, location and so on. Te home will only exist if the promoter fulfil his obligation to build according to the plans that are the basis of the purchase agreement.


BEFORE MAKING ANY DOWN PAYMENT, THERE ARE A FEW THINGS THAT MUST BE CHECKED. • The promoter or/and his company must be registered and whoever signs the agreement must have a Power of Attorney to act on behalf of the developers. A company should be checked at the Companies’ House • Making sure that the land where they are going to build is registered in the land registry under the promoters/developers name


• This is the most essential legal aspect when buying a property on construction. It is the only way to guarantee the buyer that the money will be returned in case of a problem, even if it is a serious financial problem and the company goes into a bankruptcy process.


•The planned building must have been authorised by the City Town Hall through the correct licensing procedure. Te land registry should show that the description of the future building or urbanisation has been registered. If the future construction has not been registered yet, an appointment with the Town Hall should be taken place to find out whether the land in question can be built on. • In most of the cases, there is a private agreement that it is signed between seller and buyer whereas the buyer pays a sum of money before the finalisation of the construction. Tat payment could also be divided in several instalments in accordance to the different building stages, certified by an Architect. • If the agreement contains abusive clauses, those clauses will be held not to exist, even if you have signed them, and they will be considered null and void. Tese include clauses allowing the promoters to change the design aſter signing and without your consent, clauses saying you have waived your right to choose a notary, clauses


20 / PROPERTYMAIL


• Once the construction has finished and before the Deed of sale is signed by the promoter and the buyer, there must be a proof provided by the seller that the construction has been finished in accordance with the description given in the plans and there is an insurance policy covering all damages to the buyer as a result of defective construction. • The license of first occupancy must also have been issued and it must be attached to the Deed of sale. Tis will prove that the construction was carried out in accordance to the planning permission obtained at the beginning. • After the property has been built, the new constructions must be registered in the land registry.


An important recommendation is that the buyer must keep all the plans, drawings, quality of materials, installations and all the documents that were given at the beginning of the property purchase. Finally, it is important for the potential buyer to know the future community rules as well as the community fees once the property has been delivered.


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