El blog de Maria

Buying off-plan in 2025 can be an exciting way to secure your dream home at launch prices—but the contracts we’ve reviewed from our clients often hide clauses that expose you to unnecessary risk. Here are the most common red flags we’re spotting right now:

• Power of Representation: Contracts sometimes grant the promoter excessively broad powers of attorney. It’s crucial to verify that the person signing the contract actually has the authority to do so. Insist that any power of representation be strictly limited to specific, narrow circumstances.

• Work Without Permit: Never agree to pay installments before the building permit is obtained. Until that permit is in hand, your payments aren’t legally protected.

• Exact Measurements: Ensure the contract specifies the exact usable and built square meters you’re buying—no rounding, no “approximately.”

• VAT Rate Verification: Off-plan residential properties should carry a 10 % VAT rate. Verify this in writing and prevent any higher or alternative tax from being imposed.

• Deposit Guarantee: Any sum paid in advance must be secured by a bank guarantee or insurance policy (“aval bancario” or “seguro de caución”), and should only be backed by the constructing company—since these firms are often set up ad hoc for that sole purpose—not held at your sole risk.

• Mortgage Denial Protection:

  “The effectiveness of this contract is subject to the Buyer obtaining the requested mortgage. If the lending institution denies financing or subrogation through no fault of the Buyer, the contract shall be automatically terminated and the Developer shall refund all amounts paid within 5 business days, without interest.”

  This clause must be expressly negotiated, as case law only recognizes this suspensive effect of financing failure when it is contractually stipulated.

• Fixed Delivery Date: Tie the hand-over date explicitly to the issuance of the first-occupancy license (or the start of occupancy) so you know exactly when you’ll get the keys or can enforce your guarantee.

• Costs According to Law: All expenses—notary, registry, taxes, initial community fees—must be allocated and capped in accordance with the Civil Code, not at the promoter’s whim.

• Symmetrical Penalties: If the promoter fails to deliver on time, their penalty should match the one you face—ideally set at the legal interest rate on money.

🔍 Free Initial Contract Review
As part of our educational mission, we offer a complimentary first review of our clients’  off-plan purchase contracts. Let us uncover hidden risks before you sign—contact us today!