Reservation
The reservation contract gives the buyer a preferential right to purchase a property, for a certain period of time, in exchange for paying a deposit in the event that the construction is finally completed. During the reservation period, the developer blocks the marketing of the property.
Notary fees for the execution of the public deed of sale and registration in the Land Registry (according to tariff) and agency if applicable. The taxes in the case of new housing are VAT (with a tax rate of 10% generally) and Stamp Duty (0.5%-1.5% approximately depending on the Autonomous Community). In total they can be estimated at 12% of the sale price. Additionally it would be necessary to take into account those of the mortgage in case of needing it (appraisal and financial conditions of the Bank).
Upon obtaining the Building Permit, the developer is obliged to guarantee the repayment of the amounts paid on account for the purchase of the dwelling by means of a surety insurance contract or joint and several guarantee issued by authorized credit institutions, in the event that construction is not started or is not completed, for any reason, within the stipulated term.
The insured amount will include the total amount paid in advance and taxes at the current tax rate.
If during the term of the reservation contract, the interested party decides to give up and not continue with the purchase, the developer will have the right to take back the amounts paid as a reservation.
However, if during this same phase the developer decides not to develop the development or does not achieve a sufficient level of pre-sales to guarantee its viability, it must reimburse the interested party for the amounts paid.
