Buy a house under construction can present the positive and negative aspects.
On one side is out of the question saving on the purchase price of the property, we are at least around 10-20%. On the other hand we must recognize the existence of some risk: the postponement of the date of delivery to the danger that the construction company fails and that the buyer loses the sums paid as advance.
In the case where the manufacturer fails before the execution of the deed of transfer of ownership, which usually occurs when the works were completed, only the creditors with collateral on the property (such as the bank that financed the construction with mortgage) will be able to argue their case.
Buyers without specific guarantees are unlikely to recover any sums paid as a deposit or down payment, if you do not pay twice the amount already paid.
Let's see how you can protect themselves, in the light of the provisions of this Decree Law 122 of 20 June 2005, which is intervened by offering a complete package of protection to the weaker party, the purchaser.
Surety obligation (art. 2). The manufacturer is obliged to provide for the surety on the sums paid in advance by the purchaser, until the transfer of ownership. In this way, the manufacturer must return to you any amounts received (including the value of any additional consideration). If the manufacturer does not release the surety policy, signed the purchase contract shall be deemed null and void.
The surety may also be a "progressive content" to ensure that the amounts are collected by the manufacturer in the course of time, of course, within the limit of the amount to be received by the manufacturer prior to the transfer of the property.
The surety must also include the "waiver of the benefit of prior examination" of the principal debtor, which means that the buyer can immediately contact the bank or insurance company without first having groped to recover his debt from the manufacturer.
Ten year policy (Article 4). The manufacturer must submit an indemnity insurance policy valid for ten years, to guarantee compensation for material damage resulting from any ruin (total or partial) of the property or serious construction defects. The effect of the policy is from the date of completion of works.
Preliminary contract of purchase (Article 6). Must include, in addition to the data of buyer and seller (personal data, VAT, etc..), The registry identification of the property, the full description of the technical characteristics, any planning agreements, bonds and mortgages, the maximum time of construction and delivery, the total price, terms of payment, any contracting companies, the details of the request and of the building permit and the details of the guarantee.
Right of first refusal (Article 9). In case of auctioning the law gives the buyer the right of first refusal, if the house is used as a principal residence.
Methods of payment. In general, we follow the progress of work: 6% of the total cost to the foundation, 12% upon completion of the structural elements and a bit 'more (ca. 13%) to the laying of the flooring. And so on, until the end of the payment, which will be concluded in deed.
8 THE ADVICE BEFORE BUYING:
1. Inform yourself on the reliability of the company or of the cooperative;
2. Visit other homes built by the developer;
3. Make sure that the manufacturer is covered by a bank guarantee by the insurance and ten;
4. Check the requirements of professional designers and installers;
5. Check that the ground is owned by the manufacturer and that it is building;
6. Request documents and certificates of permission (permission to build, DIA, Certificate of urban destination);
7. Read the specifications: must indicate the type and quality of materials and the list of installation companies;
8. Carefully consider the actual measurements of the property, paying attention to the incidence of the perimeter walls, balconies, verandas, etc..
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