Buying & Selling

Deposit Guarantees for Off-Plan Homes

When buying off-plan you hand over money before the home exists. The law requires the developer to secure it. We explain how.

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Buying & Selling · Updated January 2026 · 6 min read

When buying off-plan, you pay instalments before the home exists. The law protects you: the developer must guarantee every euro advanced.

The developer's legal obligation

The regulations (the Building Regulation Act, reformed by Law 20/2015) require the developer to:

Provide a guarantee or insurance ensuring the return of the amounts paid plus interest if the works do not start or are not delivered on time.
Deposit those amounts in a special separate account, used only for the development.

What you must demand

A copy of the guarantee or policy issued in your name for each payment.
That payments go to the special account, not a generic one.

If the developer defaults

You can enforce the guarantee and recover what you advanced with interest. Without a guarantee, recovering money from an insolvent developer is far harder, so it is worth checking before paying.

Frequently asked questions

We answer your questions

Must the developer guarantee the money I advance?

Yes. The law requires the developer to secure the advanced amounts with a guarantee or insurance and to deposit them in a special account. You should demand an individual guarantee for each payment.

What happens if the developer goes bankrupt before delivery?

If you have a guarantee or insurance, you can enforce it and recover what you advanced plus interest. Without one, recovery becomes complicated, hence the importance of checking before paying.

Buying off-plan and advancing money?

We check that the developer secures every payment and safeguard your new-build contract.

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