Selling my off-plan apartment

Hi,

I have been told by Andalucian Dream Homes that:

"The hard fact of the matter is that it is no longer possible to sell a purchase contract on before completion."

I wondered if this were true or whether they were telling me rubbish.

Any thoughts anyone.

Thanks

Suz

Hi Suz

welcome to the forum - you'll get loads of help here.

Suggest you get your lawyer to look at the detail in your contract.  Even then you probably won't get a clear answer. 

It is a fact of the current market - developers can't sell their new builds.  If you sell on, you're competing with them (probably undercutting them if you want a quick sale) so the easy answer from them is no, you can't do it.

Sales of new builds are slowing in some areas.  This is less income through taxes for the local government.  When contracts are sold on - not as many taxes are due as you're selling a contract not a building.  This benefits investors more than the locality.

Some authorities are wise to this, hence you have to buy - paying all taxes - then sell - paying all taxes.  Wish you luck.

It depends on the context they have told you that.

It is possible, but does depend on the terms of your private purchase contract. If it does not state you can sell this on then you will need permission from the developers.

Also any profits have to be taxed. It is not impossible but is a lot harder and the reson is no one is keen to buy off plan any more mainly due to the illegality problems recently highlighted but also as prices have come down, the stories agents told of buying off plan and selling on making a profit no longer exists, and hasnt done for a long time despite what you have been told!

Anyway, I digress, the contract can be sold on, but most who do are making a loss on their investment. Yes developers themselves arent selling either but that wont affect it

Any buyers of off plans I have had have agreed to take on the purchase but it is done at notary on completion date so they get a mortgage to cover the purchase as opposed toputting cash down months in advance.

If you want to give more info - by PM if you prefer, then I could possible help you further

A proper question to that, it really needs the documentation  perusal of a legal person. I wouldn´t say in principle that you are not allwed to sell on unless it is expressly forbidden or legally limited in the contract.

It is true that the Treasure is now trying to tax those imtermidiate transmissions with the 7% ( Trasnfer tax) but that measure is also questionable, legally.

Yes we are finding this transfer tax a very grey area.

As the original buyer will have paid 7% iva of the contract, then there is a transfer tax payable by ????? and a purchase tax for the new purchaser also at 7%, a double tax situation - or so we have been told - can you clarify this one Maria please?