Purchase During Construction Phase and Off-Plan on Mallorca

An off-plan purchase on Mallorca can offer access to modern architecture, energy-efficient technology and an earlier entry price. At the same time, you are buying something that is not yet completed. Therefore, it is not renderings and show apartments that are decisive, but developer checks, payment security, building permit, contract clauses and technical acceptance.

What does off-plan purchase mean?

In an off-plan purchase, often called compra sobre plano in Spain, a property is acquired before completion. This can be a project with a granted building permit, an already started building or a nearly finished new development. The buyer typically pays a reservation, then partial payments during the construction phase and the remaining amount at the notarial property transfer.

The central difference to an existing property: With an existing property, location, condition, neighborhood, defects and ongoing costs can be checked immediately. With an off-plan purchase, many characteristics must be derived from project documents, building description, permits and contractual promises.

Check the developer: not just the brand, but the structure

Before any payment, it should be clear who the legal developer is, who owns the land and whether the project is actually eligible for approval or already approved. Check commercial register data, economic history, reference projects, financing structure, land title and encumbrances in the land register.

Also important is the separation between seller, marketing agency, project company and construction company. On Mallorca, projects are often handled through individual special purpose vehicles. This is not automatically problematic, but increases the need for clean documentation.

Payment plan: each installment needs a counterpart

A solid payment plan is transparent, linked to construction progress or clear contractual stages, and avoids high unsecured advance payments. Common are reservation, private purchase contract, construction progress installments and final payment at notarial deed. Payments that are not made to a separate project account or are not secured by a bank guarantee or surety insurance are critical.

Under Spanish law, advance payments for apartments under certain conditions must be secured by insurance or bank guarantee and managed through a special account. Buyers should have the individual guarantee document checked before payment, not just accept a general statement in the brochure.

Guarantees: deposits, construction quality and structural defects

For new builds, two guarantee levels must be distinguished. Firstly, the security of buyer payments during the construction phase. This protects against the risk that the project does not start, is not completed or the apartment cannot be handed over on time.

Secondly, warranty and construction liability after completion. The Ley de Ordenación de la Edificación provides for liability periods: one year for execution and finish defects, three years for defects affecting habitability, and ten years for structural damage to foundations, beams, ceilings, load-bearing walls or comparable components.

Realistically assess completion risks

Delays on Mallorca arise not only from construction costs, supply chains or skilled labor shortages. Particularly relevant are municipal permits, project changes, technical requirements, connections to infrastructure, communal facilities, energy and water issues, and the first occupation license.

The contract should therefore include a binding handover date, clear grace period regulations, withdrawal rights, consequences of delay and repayment of secured amounts. Equally important is the question of when the property is legally usable: finished construction is not the same as legally ready for handover.

Construction quality: building description is more important than visualization

Renderings show style, not contractual quality. Decisive are the project, building description, plans, material list, energy data, communal areas, technical installations and any modification rights of the developer. Buyers should check whether brands, qualities and technical standards are specifically described or only generally advertised.

The Código Técnico de la Edificación forms the Spanish technical framework for safety, habitability, fire protection, accessibility, sound insulation and energy efficiency. For new builds, energy certificates are also relevant: before completion, the energy label of the project; after completion, the certificate of the finished property.

Contract review before signing

An off-plan contract should be bilingual or at least fully understood before signing. Check points are buyer and seller identity, land data, land register status, building permit, payment plan, special account, individual deposit guarantee, completion date, construction and equipment description, modification rights, defect procedures, handover conditions, taxes, ancillary costs and withdrawal rights.

Special attention should be paid to clauses that allow the developer unilateral changes, strongly relativize completion dates, only mention guarantees in general, or oblige the buyer to accept despite missing occupation license.

Notary, land register and handover

The notarial deed is the decisive step for property transfer. For new builds, particularly relevant are the declaration of new construction, technical completion confirmation, required administrative acts, energy documents and the registrability in the Registro de la Propiedad.

Before final payment, a technical inspection should take place. Defects are ideally recorded in a protocol with deadlines for rectification. The key handover should not be confused with unconditional acceptance.

Off-plan or existing property?

Off-plan is suitable for buyers seeking modern fittings, energy efficiency, lower maintenance needs and predictable new build quality. In return, they bear completion, developer and specification risks. Existing properties offer more visibility: location, neighbors, construction condition and actual use can be verified.

The better choice depends not only on price. What is decisive is whether the legal and technical risks are understood, priced and contractually controlled.