A new-build purchase replaces some resale risks with a different set: the buyer may commit before the home exists, pay substantial instalments, accept developer-drafted terms and rely on future licences and delivery dates. The contract and payment protection are therefore central to due diligence.
Key points for the buyer
- Verify the developer, land title and building licence.
- Require the legally appropriate protection for advance payments.
- Define the property, specifications, changes and completion trigger precisely.
- Coordinate legal completion with technical snagging and occupancy documentation.
Check the developer and the land
Confirm the developer’s corporate identity, representative authority and ownership or development rights over the site. Registry information should be reviewed for mortgages, charges and development conditions. Where project finance affects the land, the contract must provide a clear mechanism for releasing the completed unit from the relevant charge.
Marketing material is useful evidence but should not substitute for contractual plans, specifications and common-area descriptions.
Planning permission and project documents
Review the building licence, approved project and planning framework. The contract should identify the unit, parking, storage, terrace, garden or pool rights and the precise usable and built areas. Material variation rights should be limited and transparent.
The planned energy, installations, finishes and appliances belong in a binding specification. If sea views, private access or particular dimensions are decisive, address them expressly rather than assuming the brochure is sufficient.
Before you pay the deposit
Send us the property listing or the document you have been asked to sign.
Protecting stage payments
Spanish consumer and building rules can require advance payments to be held and guaranteed in an appropriate way. Before each payment, verify the dedicated account and guarantee documentation applicable to your purchase. A general assurance that the development is bank-financed is not the same as individual protection.
The contract should state the payment schedule, evidence required before each instalment and the buyer’s remedies for delay, non-construction or material change.
Completion, licences and snagging
Completion should be linked to objective legal and practical milestones: construction completion, the relevant technical and occupancy documents, utilities, division or unit registration and the ability to deliver what was contracted. The exact documents vary with the project and authority.
A snagging inspection records defects but should not obscure legal conditions. Decide which defects must be fixed before completion, which can be subject to a timetable and whether retention or other security is appropriate.
Tax, community and aftercare
New-build indirect tax differs from a private resale and should be estimated under current law. Confirm how parking and storage are treated, how notary and registry costs are allocated and what community fees will apply when the development is handed over.
After completion, track registration, utility transfers, guarantees, manuals and correction of outstanding defects. The developer’s handover pack should be reviewed and retained with the title documents.
Official sources and further reading
This guide uses primary official sources. Rules and administrative practice can change, so the position should be checked for the exact property and date.
- Spanish Land Registry — information for property buyers ↗
- BOE — Balearic Islands Urban Planning Act 12/2017 ↗
- Balearic Tax Agency — property tax and valuation information ↗
Important
This article provides general information, not legal or tax advice. Property title, planning, tax and contract outcomes depend on the documents, location, dates and parties in the individual transaction.