How to buy a new house (off plan) and not die trying PART II

Closing the Deal

Once you have selected your future home, the closing process involves the signing of several contracts as it progresses:

-Earnest money contract: This act represents the reservation of the home and requires a down payment. Failure to comply carries penalties for both parties and establishes deadlines and forms of payment to complete the transaction.
-Purchase contract: Here, the client must provide about 10% of the value of the property. If either party fails to comply, penalties are agreed, detailed in the document.
-Deed of sale: The sale is formalised before a notary, where buyer and seller sign, formalising the transaction.

Analyse in detail the clauses of the purchase contract to identify possible abusive clauses that could affect the buyer.

Buying a New Property in Different Situations

-Buying when you live in a family residence: Here we highlight the possibility of the family acting as guarantor, with financial requirements that vary according to the entity.
-Buying when you live in rented accommodation: It is crucial to consider construction times and avoid abandoning the rental before having secured the new home.

Other options when buying a new home

-Renting the current home and buying a new one: This option involves taking out a mortgage for the new home, the repayments of which can be supported by the rent from the previous residence.
-Sell the house to buy a new one: Here the current home can be sold to finance the new purchase or used as collateral, subject to financial assessment and ability to pay.

Key Aspects when Buying a New Home

When buying a newly built home, it is vital to carry out a thorough inspection to detect possible hidden problems:

Structure, fixtures, carpentry and paint: These should be checked for damage or signs of deterioration.
Windows, doors and finishes: Check that they are in good condition and in good working order.
Additional elements: Check that they are working properly, such as alarms, television and internet services.

In addition, it is essential to check the relevant documentation for the home, such as energy efficiency certificates, certificates of occupancy and insurance.

Any problems detected during the inspection should be reported to the developer for repair, as stipulated in the guarantee.

However, as we have indicated, there are certain timescales for defects to be rectified, during which the after-sales service of the developer in question is put to the test. It is therefore important that the developer has good ratings and comments on the internet, if they have built before.

In short, buying a new building has a number of advantages, but there are obviously disadvantages that second-hand housing does not have.