If you ask SPC to build you a house the only other thing you have to do is decide how you wish to pay for it. We are relatively flexible with payment arrangements but whatever terms are agreed between us, we appreciate payments via your lawyer. We prefer not to accept money directly from clients.
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We require an initial payment to deal with planning application, project and other fees, then regular payments to ensure we are in funds at all times for ongoing construction and building materials. Depending upon the type of property you choose or commission, building time will be between 4 – 7 months. If you instruct your lawyer to make payments on your behalf, we suggest you also instruct him to ascertain that such payments are due and reflect the current state of construction. If you use one suggested by us he will do this as a routine. |
This is accomplished by asking the architect or someone designated by him, to “sign off” work as it happens which will ensure that he is constantly aware of work which has been completed and upon which payment is due.
It will be necessary for both parties to sign a legally binding contract which in addition to providing information on payment terms and delivery dates, will also show the materials to be used for construction as agreed between the parties. The contract will be in Spanish but a certified translation will be provided in your own language. If required, your lawyer will be able to arrange a bank guarantee which will ensure that in the event of any problem, your property will be completed or your money refunded in full. The cost for this is usually 1.5 per cent of the property’s value. Your lawyer will advise you fully on this matter if asked. By virtue of the fact that your lawyer will only pay for work which has been completed he may advise that bank guarantees are not necessary.
When the property is completed, your lawyer will either obtain or ascertain that a certificate of habitation has been issued from the local authority and that power and water are available together with all local authority services. At the same time you will be offered the opportunity of inspecting the property with the “snagging foreman” in order to point out anything which you feel requires attention. If you accept this offer we always carry out a snagging check prior to your arrival so nothing will be found by you but its the thought which counts.
You can of course pass this responsibility to your lawyer or the architect, both of whom have been happily spending your money over the past few months. If everything is in order an appointment will be made with the local Notary where all documents will be signed, your final payment made and the tax due received by the Notary on behalf of the Government. As with the purchase of land, if you do not wish to be present or it is not convenient to be in Spain at this time, you can grant your lawyer a limited power of attorney which will allow him to act on your behalf in your absence. If you are not present, we give the keys to your lawyer to hold until you arrive. If you are, we all go for a beer.
