When you’ve decided to invest in a New development in Nerja, and your real estate broker has confirmed the developer’s credibility and previous work, it’s time to take the next steps toward securing your dream home. Purchasing a newly built home is an exciting process, but it requires careful attention to detail at each stage. At Gala Luxury Homes, we guide you through every step, ensuring that your purchase is seamless and secure. Here’s a comprehensive overview of the process involved in buying a New home in Nerja or on Costa del Sol.

Step 1: Reservation of Your Property

The first step in purchasing a New development in Nerja is to reserve your chosen property. Unlike a resale property, when you buy a newly built home, the reservation contract is typically short, often just one page. This document will include key information such as the developer’s company details, a description of the project, the specific property you wish to purchase, and the payment schedule.

You will typically pay a reservation fee ranging from €6,000 to €11,000. This amount is non-refundable and serves to take the property off the market for a period, usually around 30 days. While it’s a small initial commitment, the reservation fee secures the property for you while you proceed with the following steps in the process, and this amount will be deducted from the amount you pay at purchase contract.

Step 2: Due Diligence Before Signing the Private Purchase Contract

Before finalizing the purchase, it’s essential to ensure that all the proper permits and documents are in place for the new home. We work closely with you to review the following:

• Planning Permission: Verify that the developer has obtained the necessary La Licencia de Obras (building permits), not just for the property you’re purchasing, but also for the entire development, including communal areas such as swimming pools.

• Compliance with Plans: We check whether the plans and materials align with what has been approved, ensuring that you receive exactly what you expect from the new property.

• Developer’s Financial Standing: It’s vital that the developer is financially sound. We will verify their solvency and ensure that a bank guarantee is in place to protect your advance payments. This guarantee ensures that, in the event of delays or issues, your payments are safeguarded.

Step 3: Signing the Private Purchase Contract

Once everything has been verified and you are satisfied with the due diligence, the next step is to sign the Private Purchase Contract (Contrato Privado de Compraventa). This legally binding contract confirms your intent to purchase the property, and interim payments will begin at this stage.

• Payment Schedule: Typically, a percentage of the total purchase price is paid as a down payment, followed by additional payments at agreed-upon milestones throughout the construction process. You can make these payments to the developer directly or to a third-party account for added security.

• Bank Guarantee: After each payment, we ensure you receive a bank guarantee to further protect your investment and ensure that the developer completes the project on time.

It’s important to note that if you decide to cancel the purchase after signing the contract, the money already paid is non-refundable, so it’s essential to proceed with confidence at this stage.

Step 4: Completion of the Property

Once the property is nearing completion, there are several checks to ensure everything is in order before the deed is finalized:

• Architect’s Delivery: The project must be delivered by the architect, who will certify that the property has been constructed according to the approved plans. A Certificado de Final de Obra (Certificate of Completion) will be issued at this stage.

• Insurance: We check the 10-year liability insurance (Seguro Decenal), which covers structural defects, ensuring that you’re protected for up to 10 years.

• Utilities and Registration: We verify that the property is properly connected to utilities such as water and electricity, and we assist you with registering the property with the land registry (Declaración Responsable de Primera Ocupación).

With these steps completed, the property is ready for you to take possession.

Step 5: Finalizing the Purchase at the Notary

Once all construction checks are complete, the final step is to execute the notarial deed of sale. At this point, you will:

• Sign the Deed: This legally transfers ownership of the property to you.

• Final Payment: The remainder of the purchase price is paid, typically by bank cheque.

• Property Registration: We assist you in registering your new property in the land registry and setting up utility contracts (water and electricity) in your name.

Are You Considering Additional Works or Extras?

If you are planning to add any extras or modifications to your new Nerja home, such as installing a jacuzzi or additional landscaping, it’s recommended to include these in the deed of purchase. This way, you can benefit from the 10% VAT on these works, rather than the standard rate for renovations. Our team will guide you through this process and ensure everything is documented properly.