The fact to purchase a property in Spain has become more and more usual the last 10 years, and it will probably be one of your most important investment.

According to  Spanish law the developer could choose between 2 options if the buyer does not complete:

1.- To keep the amount that the private purchase contract establishes.
2.- To force the buyer to complete the property.

Few buyers are aware of the fact that the developer has both options  because some years ago it was more common to choose the first option and the developer sold the property again to another purchaser.  Nowadays there are few buyers and for that reason most developers choose to force the buyer to complete.  This is partly also because the developer can not afford the mortgage on the property. It is preferable for the developer that you take over the mortgage or obtain a new mortgage so that they can cancel theirs.

If the purchaser does not complete the developer has to go to a court procedure to try to force the completion. If they win the case and the buyer does not complete the developer can freeze the necessary assets to cover the buyers debt and the court expenses.

Which could be the solution to avoid this situation?

1.- If the buyer does not want the property before the developer obtains the habitation license they have to seek advice from a lawyer specialized in this area to search the best way to get out of the contract signed. 

2.- If the buyer could obtain several certificates from differents banks that establish that it is not possible to obtain bank financing the purchaser could ask the developer to choose the first option, if not the case has to be solved before the courts.

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