The Law for the Right to Housing, published on 25 May 2023 in the Spanish Official State Gazette, has brought with it a raft of changes aiming to reform and regulate some important issues relating to housing.
In addition to making housing more affordable and protecting people from eviction into homelessness, this new law also deals with off-plan purchases (Chapter II, Title IV) and includes some important developments that strengthen protections for buyers.
1) Advance payments to promoters guaranteed
The first one consists of expressly guaranteeing all advanced payments deposited in a promoter’s account during the construction process.
Until now, only the amounts paid from the moment the building permit was obtained were protected by the law. This, therefore, left the buyer, who had no control over the process of obtaining the license and its legality, in a position of uncertainty.
Prior to obtaining the building permit, especially in the case of cooperatives, the buyer is often expected to make monetary contributions towards a variety of things, including the purchase of the site, the design of the project, the choice of professionals, and more.
Therefore, with this new Housing Law, these amounts will also be guaranteed in the event of the work not being completed within the term stipulated in the purchase contract.
2) Term for claims extended to four years
Another way this Housing Law will favour buyers of first or second homes is that they will now have four years to be able to recover the amounts paid for a home under construction.
Initially, this period was 15 years. In 2015 it was reduced to two years; now, the new law has extended it to four years.
Always seek professional advice before buying
At CostaLuz Lawyers, we embrace the recent advancements brought about by the new Housing Law. As trailblazers in Spain in safeguarding the rights of off-plan buyers, our team of legal experts works tirelessly to ensure our clients only enter into contracts that fully comply with legal regulations and that their interests are vigorously protected.
Considering the intricacies of off-plan law and developers occasionally neglecting their responsibilities, we strongly recommend seeking legal counsel whenever purchasing a new property.
If you’d like to explore how we can assist you, please don’t hesitate to contact us here or by filling out the form below.