Buying off-plan:What it consists of and what you should take into account

What is an off-plan purchase?

An off-plan purchase is a purchase that is not made on a building in progress. In this way, interested parties reserve the property before it is finished or construction has begun, with the advantages that this implies.
This is generally available for large-scale real estate projects, such as apartment buildings or residential complexes.

Advantages of buying off-plan

Buying a home before it is built offers the following benefits:

• Possibility of selecting the home. You will be able to choose the property from the project that best suits your needs. If you like penthouses, you can reserve one; if you can't live without light, you can choose one that is south facing.

• Personalisation. Many developers offer the option of personalising or adapting the home to the tastes and preferences of the future owner. In addition to choosing the materials, you can also make modifications to the layout of the home, choosing between a separate or integrated kitchen, for example, or adding extra equipment. However, sometimes this will have an additional cost.

• Current building materials. An off-plan purchase guarantees that the building materials are quality, modern and energy efficient, as they meet the criteria established in the Technical Building Code (CTE) in terms of insulation, energy efficiency, accessibility, safety, etc.

• Ease of payment. In general, payment formalities are simpler and cheaper. The buyer must pay 10% of the price of the property when the purchase contract is signed. The remainder in instalments spread over the construction period of the property.

• Guarantee in case of defects. By law, newly built homes have different guarantees against possible defects.

• Layout of common areas. New-build developments are usually residential complexes that have communal areas, something highly valued by buyers, such as swimming pool, garden, or sports courts, among others.

Key aspects to consider when buying off-plan

Investing in a property that has not yet been built may raise doubts. For this reason, we give you some advice that you should take into account before deciding to formalise the transaction.

Carry out a study of the location: Location is a fundamental factor when buying a property. Research the area where the project will be developed and evaluate other factors such as nearby infrastructure, available services, accessibility and the potential for long-term growth and appreciation.

Review plans and technical specifications: Request the plans and technical specifications of the project to be clear on what the house will look like when construction is completed. Check details related to size, layout, construction materials, features and finishes.

Financing and delivery terms: Make sure you fully understand the payment terms and delivery deadlines determined in the contract. Ask about available financing options, down payments, monthly instalments and any other relevant financial terms. It is important to be clear about the construction schedule and how to proceed in the event of delays. In these situations, having the advice of a professional like Engel & Völkers can make all the difference. Our extensive experience in real estate and project management allows us to provide expert guidance in planning, monitoring and resolving issues related to construction schedules.

Examine warranties and contracts: Carefully study the contracts and warranties provided by the builder. Make sure you understand the rights and obligations of both parties, including clauses related to delays in delivery, changes in design or specifications, or the possibility of contract cancellation.

Legal protection: Consult a real estate lawyer to review all documents and provide legal advice. They can help you identify potential risks, abusive clauses or inconsistencies in contracts, and make sure you are protected during the purchase process.

Buying off-plan can be an exciting option for acquiring a property before it is ready, but it also carries certain risks. That's why it's best to take specialist advice, such as that offered by Engel & Völkers.