Aval bancario

Under the first additional provision of the LOE (as amended by Ley 20/2015), a developer that takes payments from buyers before a home is finished must guarantee their repayment, plus legal interest, if construction does not start or is not completed on time. The guarantee is either a joint and several bank guarantee (aval solidario) or a surety insurance policy, and must be in place from the moment the building licence is obtained.

Each buyer should receive an individual certificate naming them and the amounts covered. Payments must go into a special account. The guarantee is cancelled once the first-occupation licence is issued and the home is handed over.

If the developer does not refund within 30 days of the buyer's formal demand, the buyer can claim directly from the insurer. A bank guarantee lapses two years after the developer's breach unless the buyer has claimed, so act promptly if a project stalls.