The regulations governing off plan purchases and off plan payment guarantees have been changed by the Spanish Parliament and will become effective from January 2016.
Substituting the law 57 1968 and modifying in part Law 38/1999 these Changes To Spanish Bank Guarantees From January 2016 have serious implications for off plan buyers.
Law 38/1999 previously gave buyers protection on off plan purchases even prior to the construction license had been obtained by the developer. The new law now states that off plan payments must be covered by Spanish Bank Guarantees but made after the licencia de Obras has been obtained by the developer.
From January 2016 it is important that buyers are aware that any payments made to a developer for an off plan purchase will not be bank guaranteed and they should make sure that their appointed solicitor thoroughly checks that the licencia de Obras has been obtained, or the developer has covered the payments with a separate insurance and or guarantee prior to paying any money to the developer.
For any buyers who have already brought cases against developers or banks for past infractions prior to January 2016 these will still be dealt with under the old law governing bank guarantees.
Source: Raymundo Larraín Nesbitt, Lawyer.
For more information on Spanish Bank Guarantees and also how to ensure your off plan purchase payments are protected by a legal Spanish Bank Guarantee we are more than happy to recommend a number of professional solicitors.