By buying an “off-plan” property, you cannot, by the nature, see and feel what you buy. But usually the construction company has built a “Show house”, which is a test house. Here you can see material selection and quality of construction.
The new builds I offer are from highly-established construction companies with many previous projects, good reputation and well-funded. Danilservice has checked all of our sales projects in advance and ensured that all papers are correct and legally, such as: Does the construction company have a building permit? Do they own the plot where they are building? Has the construction company signed a building insurance (This construction insurance covers 10 years from signing the deed. However, only major construction defects and other significant damages are covered. If a tile breaks or other minor damage, they must be pointed out shortly after the signing of the deed)
Once the home is found and the purchase has to be completed, the procedure is as follows
You start by signing a reservation agreement and at the same time you pay a reservation fee of € 3,000 €. (This amount has so far been the standard for all construction companies, but now we see several construction companies that are asking a higher amount in reservation fee). Within approx. 4 weeks you have to sign the actual purchase agreement. By signing this you have to pay the down payment, usually 30% to 50% of the total purchase price. At the time of signing the deed at the Notary, the balance is due. The percentage of down payment depends on the individual construction companies. With some of the construction companies we can negotiate, others have very fixed rates.
The purchase contract must contain a drawing that specifically indicates where in the complex the property will be located. It should also be stated which floor the apartment is on, if it is an apartment you buy.
Before signing the purchase contract and paying the down payment, Danilservice will check the contract to ensure that it complies with Spanish law and that nothing in the contract has not been agreed. Danilservice will at the same time require the construction company to provide a bank guarantee for the down payment.
Purchase procedure for the purchase of resale home
The first step after finding the home you want to buy, is to make a written reservation agreement with the seller.
This agreement is usually only one or two A4 pages, specifying both parties’ name, address, identification of the home you buy, the agreed price, and a reservation fee to be paid by the buyer upon signing.
The reservation amount is normally between € 3,000 € and 5,000 €, this amount is normally held by the real estate agent. If you regret the purchase, you will lose the entire reservation fee.
With the reservation agreement in hand, you have one month to arrange assessment (if you have to borrow money for the purchase) and make sure that all conditions regarding the property are in order (ownership, old property debt, etc.). Of course, it is essential that Danilservice is involved in this process.
The next step is a purchase agreement, which is a fully binding agreement on all aspects of the deal. This includes an agreement on payment for electricity, water, joint expenses, etc. from the day of signing the deed. Also it is agreed which appliances and furniture are included in the price, but most important: the date of signing the deed and a down payment of normally 10% of the buying price.