What to ask your lawyer before you sign — part of a six-part series on the new-build purchase contract in Spain.
Why a completion deadline alone is not enough
A contract that only sets a handover date is worthless when delays hit. Without an economic sanction and without a clearly worded exit route, all that is left for you is to keep waiting.
The three layers of security
- Contractual penalty and default interest: they make delay more expensive for the developer and increase the chance of renegotiation.
- Long-Stop Date: an absolute end date at which you can walk away even without further proof and reclaim your payments.
- Termination reservation for missing approvals: if a required official approval is not in place in time, the contract falls away automatically.
What makes a right of withdrawal actually work
Withdrawal rights are only worth what their wording says. A soft draft leaves you fighting in court over whether they even apply. Concrete deadlines, clear triggers and an unmistakable legal consequence are essential.
The questions that belong on the table
- Is a Long-Stop Date agreed, and how many months lie between the planned handover and the right of withdrawal?
- What is the contractual penalty per day or week of delay, and does it remain realistic over months?
- What force majeure can the developer invoke, and how is that documented?
- What exactly happens to your payments, your guarantee cover and your construction interest if you withdraw?
What you should sort internally before signing
If your financing plan depends on completion by a specific date, that belongs in the negotiation. A good lawyer calibrates the sanctions so they are economically felt but still enforceable in court.
Written by Valentin Quiroga, lawyer specialising in real estate law on Mallorca. This article does not replace individual legal advice.
Time is a contract matter.
If you have a new-build contract in front of you right now, we walk through it with you in calm and detail. We connect you with Valentin Quiroga, our specialist in real estate law, and stay by your side if you want us to.
