When buying off-plan you hand over money before the home exists. The law requires the developer to secure it. We explain how.
Buying & Selling · Updated October 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 regulations (the Building Regulation Act, reformed by Law 20/2015) require the developer to:
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.
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.
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.
Yes. The law obliges the developer to secure, via a bank guarantee or insurance, all amounts you pay on account, held in a special account. Without a guarantee, you should not pay.
Stop making payments and demand it in writing. Paying without a guarantee leaves you unprotected if the development is delayed or the developer goes bankrupt. We help you claim it.
The guarantee ensures the return of what you advanced plus interest if the home is not delivered by the agreed date or the licence is not obtained. Review its terms.
We check that the developer secures every payment and safeguard your new-build contract.
