Off-plan delays and handover in Spain: what happens if completion is late

Construction can be delayed by weather, contractors, supply problems or, very often, by the wait for the town hall to confirm that the finished building can be occupied. The contract's delivery clause decides how much delay is allowed: read the date, any grace period and how delivery is defined before you sign.

Under the first additional provision of the LOE, if construction has not started or the home has not been delivered by the agreed date, you can choose between:

• Cancelling the contract and recovering what you paid on account, plus legal interest.
• Granting the developer an extension, recorded in an additional clause to the contract.

If you cancel and the developer does not repay within 30 days of your formal demand, you can claim from the insurer under the guarantee; the insurer must pay within 30 days of your claim. A bank guarantee lapses two years after the developer's breach if you have not asked for the contract to be cancelled and the money returned in that time.

If you decide to wait, your lawyer can reserve your right to claim damages caused by the delay. What can be claimed depends on the contract and the facts.

1. End of works: the site architect signs the end-of-works certificate and the developer formally accepts the works from the builder.
2. Occupation: the town hall grants the first-occupation licence, or, where regional law allows, the developer files a responsible declaration of occupation.
3. Declaration of the finished building: the developer records the declaration of the finished new building before a notary and at the Land Registry. It requires a technician's certificate and the occupation authorisation, and cannot be authorised or registered without proof of the ten-year insurance.
4. Notice to complete: the developer calls you to sign the deed on a given date.
5. Inspection: you or your representative check the home and list defects (Snagging).
6. Completion: you pay the balance, sign the title deed before the notary and receive the keys.

• The building file (Libro del Edificio), with the as-built project and instructions for use and maintenance.
• The energy certificate.
• Proof of the first-occupation licence or responsible declaration, which you will also need to connect utilities.
• Warranties and manuals for installations and appliances.
• The community statutes and any service contracts.

Once the occupation licence is issued and the home is handed over, your payment guarantee ends and the liability periods of the LOE begin; see bank guarantees and building warranties. Put any defects found at inspection in writing, and agree with the developer how and by when they will be repaired.