How can I ensure that money I have paid to a builder or property developer will not disappear into thin air?
When property is purchased from plans, Spanish law enables a buyer to demand a bank guarantee from the seller for the buyer’s benefit for the amount of the deposit paid. If a property developer will not comply with the law at the negotiation stage, the decision to proceed with the purchase must rest with the buyer in full knowledge of the risk involved. go to top I have been told by the estate agent that some of the purchase monies will have to be paid in cash. I don’t mind withdrawing money in cash, but wonder what impact if any it might have on me. It has been common practice throughout Spain for many years for the seller to understate the purchase price enabling the seller to reduce his or her tax liability. Prospective purchasers may be told that such practice will reduce their initial outgoings by a saving in stamp duty. This is true at the outset, as a purchaser will not pay stamp duty on the amount paid in cash. However, purchasers should be aware that any saving made at the out
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- How can I ensure that money I have paid to a builder or property developer will not disappear into thin air?
