RECOVERING DEPOSITS FOR OFF-PLAN PURCHASES

Housing project processIf you have bought a property off-plan, or are thinking of buying one, you need to be aware that the law in Spain changed in 2016 and this might affect you.

Building Regulation Law (Ley de Ordenación de la Edificación – LOE) came into force on 1 January 2016, and it introduced important changes for off-plan buyers.

Principally, it cuts the period within which those who have not yet taken possession of their property can reclaim their deposits from the promoters and banks which received them without providing the legally-required guarantees. Before 31 December 2015, Law 57/1968 of 27 July established a period of 15 years from the agreed delivery date for reclaiming a deposit for breach of contract (when the property was not handed over by the contracted date or when there was a significant delay in handing it over).

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