When you buy a new development in costa del sol, you will receive a modern, unused, and energy efficient property which one can usually modify for one’s preferences during the building process. From an investing point of view, it is generally recognized that buying a new development in an early stage, while the promoter is trying to attract investors, offers the possibility to purchase it at a lower price. Usually, when the project is ready the property prices will rise.
From a financial point of view, there is the benefit of not needing to pay the whole purchase price at once. The buyer can make the payments in stages as the project proceeds.
The purchaser does neither have to use a building inspector, while that has to be offered by the promoter. The buyer does not even have to pay the property transfer tax (ITP ), that is required when buying a second-hand property.
However, when buying a new development, the buyer has to pay the VAT tax that is either 4% or 10% depending on the type of project.
One of the most important things is the obligatory bank guarantee/security by the developer to refund payments during the building projects, in case the project does not finalize. Also, every serious promotor has additional guaranties and deposits on external accounts for fulfilling any claims that could occur during and after the building process.
The buyer of new development in costa del sol is furthermore protected by consumer laws while the purchase is between a company and a consumer, which is not the case when for example buying a second-hand property from a private person. Additionally, it is protected by other laws and norms for users.
There are also extended possibilities for claims, while the buyer has the right to claim constructional, installation, latent effects, and other issues during 1,3 and 10 years after the finalization of the project depending on the what the claim concerns.
Lastly, there is the possibility to claim a breach in contracts for 5 years, for example, if the materials used in the project are not the ones established in the developer’s protocol.
We recommend always to consult a lawyer to guide through the process, because it is very important to check the contracts, protocols, memorandums and that the developer/promoter has the required licenses concerning property, etc. to secure your rights in case of any issue. Our in-house lawyer offers also these services.
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*The posts in this blog are only informative and general. Not suitable for any legal advice. We do not take any responsibility for actions taken, referring to the blog posts. They are not automatically up to date.