If you are interested in buying a new property, it is worth knowing that there are a few ways to reduce its final cost. One of them is buying off-plan. What does this mean? It means buying a home in the early phases of construction, from the graphic designs (plans) and/or specifications.
We have some advice for this process to give you full confidence in the purchase, because it is important that you understand what to do.
Find out about who is selling the house to make sure everything adds up. Make sure everything fits together in their respective legal framework. If it is a developer, make sure they own the land your house is going to be built on. How do you find that out? Through the Land Registry.
Before signing any documents, it is essential that you review the contract thoroughly and in your own time to make sure there are no unfair clauses. Gather and hold onto all documentation and advertising brochures as these will need to be provided as evidence in case of any legal issues.
There are estate agents who advise adding a section in the contract stating that there will be a penalty for missed deadlines. Sometimes, it can also be stated in the contract that the company in question must cover rental expenses if handing over the off-plan house is delayed.
The developer must open an account that is only used for construction costs and collecting money from buyers. That is the only place you should make payments to, as it is the safest method.
When signing the contract, ask the developer to give you a copy of the plans, so you can show them the original layout if they have made changes.
Ask for a general guarantee to protect the money you have paid. Likewise, request a personal guarantee from a bank or insurance company.
Finally, it is very important to obtain a first occupancy license if you want to live in your new home because without this document, you will not be able to move in. This document is usually issued by the council where the property is located.
In short, keep all these tips in mind to make sure buying a house off-plan happens as it should and without any headaches.