buy an off-plan property

10 most common mistakes buying an off-plan property

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If you are planning on buying an off-plan property, watch out for these common mistakes.

1. Paying a deposit without a bank guarantee or insurance certificate from a recognized solvent company.

  • DO NOT pay a penny without receiving an individual certificate in your name of guarantee or insurance.
  • Keep all proof of payment. Do not pay cash it will not be guaranteed if something goes wrong.
  • ​If you never got a bank guarantee and lost your money, you might be happy to hear that there is recent High Court resolutions in the buyers favour making the Bank responsible for it.

​2. Failure to check the creditworthiness of the seller.

  • ​Going with an attractive price can be a mistake. An unprofitable promotion runs the risk of not being completed. A seller who has previous debts may be tempted to divert your money.

3. Not visiting the seller´s other promotions.

  • Not seeing the seller´s other buildings is an unnecessary risk. Although it´s not a guarantee, it is always good to meet people who have bought apartments from the same vendor to find out if there were any problems and how they were solved.

4. Being pressured by the vendor.

  • Arguments like “it´s the last”, “tomorrow the price might rise” are ways of pressuring you and most of the time is a lie. A hasty decision could be expensive.

5. Not asking the seller the required information.

  • Depending on which autonomous region you are in, there is a piece of mandatory information that must truthfully be given. Your independent lawyer will check that for you.

6. Not including the delivery date in the contract.

  • This is essential as it will set the moment in which you can or cannot claim back the money paid if you do not receive the delivery that day. Do not allow open terms, such as “in the third quarter of 2018 with the possibility of extension.” The developer has an obligation to set the delivery date.

7. Not requesting a copy of the promoter´s mortgage in which one can be subrogated.

  • Before signing a contract verify the mortgage conditions. Ask for a written copy and check that the conditions are correct. For example, the interest rate, the term commissions …

8. Deciding on impulse.

  • This will be one of the biggest purchases of your life. DO NOT rush in. Think everything over.

9. Not checking with the seller’s bank that there is a special account and that is indicated in the contract.

  • A good salesperson is honest and transparent. Ask for the vendors bank account details, check with the bank that the details are correct. Ask for a certificate you might need it later.

​10. Not including advertising in the contract.

  • Everything you are promised by adverts is part of the contract. Attach it, save it, incorporate it into any document you sign.
  • In many countries it is normal to go to an independent lawyer to make sure everything is correct.
  • Here many people now regret not having gone before signing the reservation.
  • Be safe, not sorry. Peace of mind for you and your family.

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