House model with real estate agent and customer discussing for contract to buy house, insurance or loan real estate background.

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.

Maria Luisa Castro

Director and Founder
María founded CostaLuz Lawyers in 2006 and is the Firm’s Director. María is registered Lawyer number 2745 of the Cadiz Bar Association and is licensed to practice in all areas of law throughout Spain. Working closely with her team, María has developed the firm into one of the most highly regarded and trusted Spanish Law Firms acting for English-speaking clients with legal problems in Spain. We’re here to help. Contact us today for a free, no-obligation, initial legal orientation.
María Luisa De Castro - Costaluz Lawyers

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