How off-plan payments are protected

1. How an off-plan purchase works

You reserve a unit, sign a purchase contract with a payment plan — for example a share on signing, further stages at construction milestones and the balance at handover — and sign the deed once the building is finished and licensed for use. On Casa24, development pages show each unit's payment plan in euros, so you can see exactly what is due and when.

2. Spain: a guarantee for every payment

Spanish law requires developers of homes to protect the money buyers pay before completion. Each payment must be covered by an individual bank guarantee (aval bancario) or insurance policy in the buyer's name, for the unit being bought, and paid into a dedicated account. If the home is not finished or not delivered on time, the buyer can claim the amounts paid back, with interest.

• Ask for the guarantee certificate itself, naming you and your unit — not just a clause promising one — and verify it with the issuing bank or insurer before paying.
• Check that the developer holds the building licence (licencia de obra) for the project.
• New homes must carry ten-year structural insurance (seguro decenal). The law also sets three-year liability for habitability defects and one year for finishes.

3. Portugal: put the protection in the contract

In Portugal, the off-plan purchase is formalised in a promissory contract (CPCV). Because the contract is where most of your protection lives, have an independent lawyer review it before you sign. Ask for:

• A bank guarantee or similar security covering the payments you make before the deed — and make it a condition in the CPCV.
• Payments tied to construction milestones, with clear penalties for late delivery and the right to cancel after a defined delay.
• Copies of the approved project and the construction licence (licença de construção) from the municipality, plus a land-registry search showing the plot is free of charges.
• The technical specifications of your unit attached to the contract.

At completion, the developer must obtain the licença de utilização (habitation licence) before the deed can be signed. Builders are liable for structural defects for ten years and for other defects for five years.

4. Questions to ask any developer

• Who guarantees my payments, and can I see the guarantee before I pay?
• Is the building licence granted, and when does it expire?
• What is the handover date, and what happens if it slips?
• What exactly is included — finishes, appliances, parking, storage?
• Which documents will I receive at handover?

You can send these questions straight to the developer from any development page on Casa24. A developer who cannot show a document is not necessarily hiding a problem, but it is a reason to pause.

Good to know

This guide is general information, not legal advice. The protections that apply depend on the country, the contract and the property — always have an independent lawyer review the documents before you sign or pay anything.