Key Questions and Considerations
Purchasing a property off-plan—before construction is completed—can be a great opportunity if approached with the right knowledge. This guide will help you understand the essential questions to ask and the steps to follow when considering an off-plan property.
What is an Off-Plan Property?
Buying off-plan means purchasing a property before it has been built. This option comes with advantages, such as having more time to save and acquiring a brand-new home.
If you're interested in buying off-plan, explore available new developments for sale in Mallorca . Exclusive off –plan projects now on the whole of the island of Mallorca, to suit all requirements and budgets.
By asking the right questions and understanding the process, you can make a well-informed decision and secure a property that meets your needs.
To ensure a smooth buying process and avoid unexpected surprises, you should ask the following questions:
Financial Considerations
- What is the full breakdown of the property price? Ensure clarity on all costs, including VAT, notary fees, registration fees, and whether extras like a storage room or parking space are included.
- How is the payment plan structured? Understanding the payment schedule helps with financial planning.
- Is an initial deposit required? Be aware of the upfront costs.
- How many instalments will there be, and when are they due?
- Are the amounts I pay insured or guaranteed? Verify if your payments are secure in case the developer fails to complete construction.
Construction and Design
- When is construction scheduled to start and finish? Understanding timelines helps you plan accordingly, though delays can occur.
- Can I get specific details about the house’s design and features? Obtain a detailed floor plan and specifications, including finishes, appliances, and materials used.
- Can I customise aspects of the property? Some developers allow changes, but it’s important to clarify if this involves extra costs.
Legal and Administrative Aspects
- What guarantees does the property come with? Ensure the property has guarantees covering structural, installation, and finish defects.
- What happens if the project is delayed? Check if penalties apply to the developer in case of delays.
- Have all necessary licences and permits been obtained? Confirm that the project has a valid building permit.
Additional Considerations
- What will the community and common areas be like? If the property is part of a development, ask about maintenance plans and costs.
- What are the cancellation conditions? Understand the financial implications if you decide to withdraw from the purchase.
- How will the handover process work? Ensure you can inspect the property before finalizing the purchase and handover.
Steps to Buying an Off-Plan Property
Once you’ve selected a suitable property, follow these steps:
- Sign a reservation agreement and pay the reservation deposit.
- Sign the purchase contract (once the building permit is obtained). At this stage, a percentage of the property price is paid, followed by instalments until completion.
- Deposit payments into a designated development account.
- Pay the remaining balance upon signing the title deed, typically through a mortgage or other payment method.
- Don´t forget to budget for taxes and additional costs.
- Ensure the developer provides information about their company and the plot in question, including:
- Commercial Registration number
- Building permit
- Land Registry details
Pros and Cons of Buying Off-Plan
While buying off-plan has its benefits, it also carries certain risks. Here’s a breakdown:
Advantages
- Customisation – Ability to personalise finishes, fixtures, and fittings.
- Lower Price – Usually more affordable than completed properties.
- More Time to Save – Payment is spread out over time.
- Brand-New Home – Reduced need for repairs and renovations.
- Legal Guarantees – Spanish Building Law provides protection over a given time against defects.
Risks
- Delays – Construction timelines may be extended.
- Project Changes – Some aspects may differ from the original plans.
- Uncertainty – Harder to visualise the final product before completion.
Property Guarantees in Spain
New-build properties in Spain come with the following guarantees:
- 10 years – Structural defects (e.g., foundations, beams, pillars).
- 3 years – Defects affecting habitability.
- 1 year – Issues related to finishes.
Pollentia Properties is a company you can trust to help you build your dream house in Mallorca. We understand the complexities involved and will be with you every step of the way. We can offer you exclusive off-plan properties in your chosen location which adapt to all tastes and budgets.
Don't hesitate to contact us, if you wish to get more information about developments for sale in Mallorca or if you want to sell your property in Mallorca.
Are you looking for a house to buy on the island? Discover our amazing properties for sale in Mallorca. At Pollentia Properties we can also help you obtain a mortgage for buying a property in Mallorca.
Don´t forget that we can organize an Inspection Trip to see for yourself what great opportunities we have at your disposal. Take a look at our section on Inspection Trips.
