Overseas properties

Buying off plan

Buying property from a developer, especially when it has yet to be built, is quite different from buying in the second-hand or resale market. One advantage is that the buying process can be much simpler; the developer will usually hold your hand throughout, prepare documents in English, including the contracts, arrange a mortgage and even let you pay the balance in sterling, so that all you need to do is sign on the dotted line.

The dangers are many, however. For a start there is the risk that the building will be delayed or not finished at all. In other cases, the development may be illegal, if all the necessary consents weren’t obtained. More commonly, buyers don’t get exactly what they were expecting, or are dissatisfied with the quality of the build.

There’s no way to guarantee avoiding all these pitfalls, but the one simple thing buyers can do is to avoid placing too much trust with the developer, and to resist being seduced by the marketing gloss. Don’t take it for granted that features included in the brochure with all its slick computer-generated images will be included in your purchase price unless they are explicitly mentioned in the contract.

Read the small print, insist on having a copy of the detailed specification and find out if there are bank guarantees or stage payment insurance in place to ensure that if the building is not completed you will get your money back. Get a lawyer to read all the documentation.

You should also think about how you are going to monitor progress during the construction period. Will the developer (or their agent) undertake to provide regular photographic updates? The best way to gain assurance about a new-built project is to look at the developer’s track record and their reputation. Ask for references from previous buyers you can talk to.