How to avoid being "stiched up" on completion of your "off plan purchase"

When called upon to complete your purchase you need to be satisfied that the description of the property you think you are purchasing equates to the property being delivered to you by the developer. In order to achieve this you should ensure, at a minimum, when signing the Private Purchase Contract, that the description of the property, its precise location within the complex, its external and internal finish etc. should be laid out in some detail. Failure to do so may limit you later opportunities to argue that the property is defective in some way.

Once completion has been requested you should view the property and make a complete "snagging list" of any issues or problems that are obvious with the property. Should your developer fail to address these our recommendation is to give formal notification -- preferably through an independent lawyer - to the developer asking them to resolve all listed problems. If they continue to refuse the solution is for the purchaser to rectify the "snags" using another contractor and to pay for the work at their own cost. The amount paid should then be claimed from the developer with the ultimate sanction being to issue judicial recovery proceedings if they fail to pay. This may work best particularly where a number of new owners complain and their complaint can be properly co-ordinated through a single lawyer or committee. There may be other opportunities to "delay" completion but these will usually depend on your precise circumstances.

The "Resale" Market

How to avoid risking a criminal penalty for paying in "black" or "B" money.

Buying in Spain is not just about putting a deposit down and waiting two years for the completed property. Many satisfied clients have bought what are called "resales" which are pre-owned apartments and houses. The main reasons for this tend to be issues relating to getting better value for money, particularly villa properties. B by purchasing older you usually get a much more mature property and garden with the teething troubles of a new property already out of the way. Additionally, the location may be a little more established where no further building work is permitted.

Often when buying a "resale" in Spain paying 'black" or "B" money is mentioned. This enables the seller to evade tax -- by artificially reducing the declared price of the property and thus the capital gains tax due. However, the Spanish Government is toughening up its approach to this kind of Tax fraud. Let's make no mistake however accepted this practice is at a "social" level it is still in breach of the law and at a personal level the vendor is passing on their part of their tax bill to the purchaser!

The concern however is that if you refuse to accept this as standard practice will you be able to buy the home you have set your heart on. The sensible advice, and the most prudent conduct, is to refuse to deal in such a manner.
Despite putting your "dream" purchase at risk the potential pitfalls from a personal criminal liability and resale point of view are worth avoiding. By doing so gradually the swell of opinion away from such sharp practices will reduce the expectation that all buyers are prepared to flout the law.