# Bank Guarantees



## woodpecker9 (Jan 22, 2021)

I am thinking of buying off plan in Spain. The agent has assured me that bank guarantees are now 100% safe, is this true.


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## The Skipper (Nov 26, 2014)

woodpecker9 said:


> I am thinking of buying off plan in Spain. The agent has assured me that bank guarantees are now 100% safe, is this true.


The UK Government web site has some useful advice about buying off-plan in Spain: Spain: buying and renting property


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## woodpecker9 (Jan 22, 2021)

The Skipper said:


> The UK Government web site has some useful advice about buying off-plan in Spain: Spain: buying and renting property


Thank you Skipper you are most kind. The UK Government web site is informative but in some parts a little beyond my understanding. I am a pastry chef and not a property conveyancer. I presume my Spanish lawyer will be fully aware of all this information and it will be his legal duty to comply with it.


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## Barriej (Jul 23, 2012)

woodpecker9 said:


> I am thinking of buying off plan in Spain. The agent has assured me that bank guarantees are now 100% safe, is this true.


I doubt that any guarantee can be 100% safe. I suppose you could take out an insurance policy that would cover such items as the company building going bust etc.

Buying off plan is always fraught with danger, the place we have was a nightmare for the original buyers in 2000. 
They were years late, the grounds, swimming pool and shop were never built. People finally moved in around 2005 and when we purchased this in 2019 it sold for nearly 20k less than they originally cost to buy.
The flats were rushed (we have an issue with floor tiles lifting as there is no grout gap, friends of ours round the corner have cracked tiles, the double glazing rattles) i could go on but I'm sure you get the drift. 
Im not saying all developments are bad, but you need someone on the ground you can trust to keep an eye on stuff. Doing this from another country (if thats what you are doing is not a good idea) 

If you are using a Spanish lawyer DO NOT use one that the company provides or even recommends. Find one a couple of towns away who knows nothing about the development. You need totally independent advice but you will have to ask the questions needed, otherwise things wont get done.


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## woodpecker9 (Jan 22, 2021)

Barriej said:


> I doubt that any guarantee can be 100% safe. I suppose you could take out an insurance policy that would cover such items as the company building going bust etc.
> 
> Buying off plan is always fraught with danger, the place we have was a nightmare for the original buyers in 2000.
> They were years late, the grounds, swimming pool and shop were never built. People finally moved in around 2005 and when we purchased this in 2019 it sold for nearly 20k less than they originally cost to buy.
> ...


Thank you Barriej. I will ask the agent if he can get me an insurance policy that covers the bank guarantee, bad workmanship and the builder going bust etc before I give him the deposit.


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