Why is it safe to buy a house in Spain? Legal Protections and Buyer Warranties .
Buying a property in Spain is a safe investment thanks to a robust legal framework that protects the buyer, especially in new build transactions. Spanish laws guarantee transparency in contracts, security in money deposits and the soundness of bank guarantees. At SILC ESTATES, we accompany our clients throughout the process, offering free legal advice to guarantee a risk-free purchase.
Below, we detail the main guarantees and laws that support the consumer in the purchase of a home in Spain.
1. Consumer protection in the purchase of new housing.
Building Regulation Law (LOE) – Law 38/1999.
This law establishes the technical and legal requirements that real estate developments must meet, guaranteeing:
- 10-year warranty for structural defects.
- 3 years for defects in finishes or installations.
- 1 year for malfunction of mechanical elements (elevators, heating, etc.).
Developers are obliged to take out property damage insurance (Law 20/2015) that covers possible failures in the construction.
General Law for the Defence of Consumers and Users – Royal Legislative Decree 1/2007.
This regulation protects the buyer against:
- Abusive clauses in contracts.
- Misleading advertising.
- Failure to meet deadlines.
If the developer does not deliver the property on the agreed date, the buyer can claim compensation or even the termination of the contract with a refund of the amounts advanced.
Horizontal Property Law.
It regulates the rights and obligations of owners in neighbourhood communities, ensuring that the buyer receives a home free of encumbrances and with all services in order.
2. Where is the money deposited in the purchase of a new home?
One of the biggest fears when buying a home under construction is what happens to the money I advance? Spanish law protects these funds through two mechanisms:
Bank Guarantees – Law 57/1968 and Royal Decree 515/1989.
- The developer must guarantee the amounts paid on account by the buyer by means of a bank guarantee .
- If the promotion is not finalized, the bank must return the money to the buyer.
- The guarantees cover up to 100% of the amounts delivered plus legal interest.
Special Deposit Accounts – Law 20/2015.
- The funds delivered by the buyers must be deposited in a special blocked account, only intended for the construction of the project.
- The bank supervises that the money is used exclusively for promotion, avoiding embezzlement.
3. Security in the signing of private contracts and deeds.
Deposit or reservation contract.
- Regulated by the Civil Code (Art. 1454), it allows the buyer to reserve the property with a deposit (usually 10% of the value).
- If the developer defaults, the buyer gets back double the deposit.
Public Deed before a Notary.
- The sale is formalized in a notarial deed, registered in the Land Registry, which guarantees:
- Legal ownership of the property.
- Absence of encumbrances or embargoes.
- Legal validity vis-à-vis third parties.
4. What happens if the developer goes bankrupt?
In the event of the developer’s insolvency, the buyer is protected by:
- Bank guarantees, which guarantee the return of the money.
- The Insolvency Law (Law 22/2003), which prioritises buyers in bankruptcy proceedings.
5. SILC ESTATES: Free legal advice for your safety.
At SILC ESTATES we know that buying a home is one of the most important decisions of your life. Therefore:
✅ We verify the legality of promotions.
✅ We advise you on contracts and financing.
✅ We guarantee that your investment is 100% protected.
We offer free legal support to make your purchase in Spain safe and transparent.
📞 Contact us today and buy with complete confidence.
In summary, the Spanish legal system offers multiple guarantees so that the purchase of your home is a safe process. With SILC ESTATES, you will have the support of experts who will look after your interests at all times. Your home in Spain is protected!
