No more Horror Stories!
Because we care about our clients, and due to the prevalence of town planning scandals that have affected thousands of off-plan buyers in Spain, Aldea Homes have decided to offer a unique service. Thanks to the collaboration of Devwatch, Aldea Homes are proposing to assess the legal situation of off-plan developments, giving each one a legal rating. Many factors will be taken into account for this valuation but special attention will be paid to finding out if the developers are offering bank guarantees or not, if they have legal ownership of the land or not and if they possess planning permission for the work to be carried out or not.
- Why do purchasers need bank guarantees?
A bank guarantee protects the money paid by the clients so that if something should go wrong, they will always be in the position to reclaim it all.
The absence of a bank guarantee will yield a rating of up to 2 points (out of 10).
- Why is it important to know if the developer has legal ownership of the land?
Some developers begin to sell properties off plan without having even bought the land. This can have grave consequences if, at the last minute, the vendor decides not to sell the land to the developer, which consequently will mean cancellation of the development. In the absence of a bank guarantee, the land is often a source of guarantee in order to carry out possible refunds to the purchasers.
The absence of the title deed of the plot can mean a rating of up to 4 points.
- Why is planning permission important?
Likewise, the lack of planning permission can mean that the development may never be built or that once it has been built, the authorities may order it to be demolished. It is a common practise for developers to take deposits from purchasers even when there is no planning permission for the properties in question, although they do not have to pay over any further amounts until the appropriate licence has been granted. From this you can see that these two requirements will protect the capital appreciation of purchasers’ money.
The status of the building licence and of other variables determines the higher score.
 
Look for the green bar!
A green bar means that the development meets all the legal requirements (A+ = 10 points)
Our initial idea was to disregard any developments that showed any signs of irregularities. However, we now understand that some people are prepared to take risks because either they have found their dream home or they believe they have found a bargain too good to miss. Therefore, you will find developments that are legal as well as those with irregularities within our web pages.
Please note that this information is not intended to be a substitute for expert legal advice and we would strongly suggest that consumers seek legal representation when acquiring property in Spain.
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