How long does it take to complete a new development?
A new construction development, from start to completion, takes between 18 and 24 months, depending on the project. To this, we must add the time required for obtaining licenses, supplies and other administrative tasks, which can be around another 6 months.
What are the phases of a new construction project?
A new construction project must go through a series of phases up to the time that the clients receive their homes:
What are the developer's obligations?
The developer must comply with the specific legislation at national, regional and local levels; and thus, among others, provide potential buyers with the necessary information, adapt contracts and other documentation to the requirements imposed by the regulations on the sale and purchase of homes in first transfer and on the protection of consumers and users. Likewise, it must guarantee the amounts delivered in the legally stipulated manner, meet the deadlines for commencement and completion of the works and execute them in accordance with the agreed qualities and, lastly, deliver the homes and other properties in strict compliance with all legal requirements (building book, ten-year insurance, etc.).
Are the amounts paid on account guaranteed?
Yes. This is also a mandatory measure, whose precedent has its origin in the Law regulating Advance Payments in the Construction and Sale of Housing 57/1968 of July 27, 1968, now repealed, and whose regulation is currently contained in the First Additional Provision of Law 38/1999, of November 5, 1999, on Building Management.
Is it possible to modify the houses during the construction process?
This depends on the type of modification and the stage of progress of the works. In many cases, it is necessary due to the requirements of the building permit itself, technical and/or legal requirements, improvements during the construction process, lack of supply of materials in the specifications, etc. Finally, there are the improvements or selection of improvements and choice of qualities that we offer our customers, which have a deadline for their definition.
What does it mean if a project has been granted a building permit?
Granting of a building permit means the administrative authorization of the City Council to start the construction works, because the project complies with the applicable technical and legal regulations.
How much money do I need to make the deposit?
The amount needed to formalize the reservation is not fixed, since it depends on the project. In general, the most common range of down payment is between 3,000 € and 20,000 €.
What is the penalty if I cancel the purchase?
The penalty for withdrawing from the purchase is 50% of the amount paid, plus marketing costs and the costs incurred for reversing the reforms contracted by the customer in the Kronos Select customization program.
What types of contracts will be signed during the purchasing process?
The purchasing process is a legally regulated process to offer maximum guarantees to both parties. The most common types of contract in the purchase of a property are (i) the down payment contract, (ii) the private purchase contract and, if applicable, addenda: the latter are accessory amendments to the purchase contract only if the situation or the client so requires, for example, when changing the account number for direct debit of bills, or when making changes to the project; (iii) public deed of sale, through which the delivery of the real estate units and the acquisition of their ownership takes place.
When are the contracts signed?
The down payment contract is signed when the real estate unit is chosen and the private purchase and sale contract is signed when the developer is well advanced in the procedures to start the construction process by obtaining the building permit, obtaining the line of sureties to guarantee the amounts on account and achieving the number of sales required by the financial entity that guarantees and/or finances the project. The public deed of sale will be signed when the dwelling is built, with the administrative authorizations for its occupation and with the possibility of registering its utilities.
What is the down payment contract and what does it imply?
The down payment contract is a document that serves for the buyer to choose the real estate unit and the same is blocked in the name of the buyer, so that it cannot be sold to a third party, except by agreement between the parties. Of course, the amount paid as a deposit will be deducted from the price.
What documents do I need to sign the down payment document?
The documents required for signing a down payment are a valid ID card, VAT number or passport; the KYC –Know Your Customer– form for the Prevention of Money Laundering and Financing of Terrorism, as well as a certificate of ownership of the bank account in the customer's name from which the payments will be made.
What happens if the delivery is brought forward?
Private purchase contracts stipulate delivery dates, as well as extensions and possible advances. In any case, customers will always be notified 15 days in advance of the expected date of signing of the deed. However, at Kronos Homes, we have developed a delivery protocol that begins approximately 6 months before the actual delivery, during which time we send our clients a series of communications, reliable notifications and information, both financial and legal, so that they can be prepared and informed of the entire process in advance, appropriately and with peace of mind.
What happens if delivery is delayed?
In private sales contracts, if there is a delay, there is the possibility of an extension of the contract and different consequences depending on who is responsible for the delay.
Can the form of payment be changed once the contracts have been signed?
Not as a general rule. In exceptional cases, a change in the form of payment may be assessed by means of an addendum, with special attention to compliance with the requirements established for the prevention of Money Laundering and Financing of Terrorism regulations.
Is it possible to change the buyers or the ownership percentages of the buyers in the home purchase contract?
Modification of the percentages of participation in the purchase contract is not permitted, unless expressly authorized by the developer. In the affirmative case, the situation that motivates the change must be of exceptional character and be specially justified, with the buyer assuming the fiscal obligations that, in its case, are generated.
When is it possible to sign the title deeds?
This depends on the autonomous legislation, but it can be stated that it is possible to sign the deed when the property has been built, the deed of horizontal division has been registered, the license of first occupation and/or certificate of occupancy has been obtained, in addition to obtaining the necessary installation certificates to register the utilities.
Is it possible to change the ownership of the property before the deed is signed?
It is not permitted to change the owner of the property before the deed is signed, unless expressly authorized by the developer. If so, the situation motivating the change must be of an exceptional nature and be specifically justified, since an assignment may be interpreted as a disguised "resale", with its consequent tax implications.
If the bank does not grant the mortgage, will the amounts paid be returned?
It is very important for the client to make sure of the financial viability of their mortgage loan, since, if they do not obtain the financing, it will be considered a breach by the buyer and the penalty foreseen in the private purchase and sale contract will be applied.
What documentation will I receive after handover of the property?
For such a special moment, at Kronos Homes, we have taken care of every detail. All our clients receive a Welcome Pack that includes: as-built plans, installation reports, warranties, supply contracting guides, welcome letter from the administrator of the community of owners, address of the community of owners, receipt of keys, welcome letter from Kronos Homes, housing manual, materials guide, customer service data, energy efficiency certificate and a USB with an interactive manual that includes all this information in digital format.
What warranties do the homes have?
Kronos Homes homes comply with the warranties set forth in the Building Law 38/1999 of November 5: 1 year for damages, defects or flaws related to finishes or finishes (art. 17.1b, second paragraph); 3 years for material damages caused by flaws or defects affecting habitability (art. 17.1b, first paragraph) and 10 years for structural damages (art. 17.1a).
What are the deadlines for claiming for defects?
Once the deed is signed, our clients have from 15 days to 1 month (except in case of force majeure) to visit their home in the company of an after-sales technician. Before the visit, we advise you to have contracted the supplies to be able to test all the installations and equipment, in order to make the after-sales list.
How do I claim for defects?
Once the after-sales visit has taken place, customers complete a form in the company of a specialized technician, of which they receive a copy. If a defect arises after the visit, they can report it through their customer area, by e-mail or by telephone to the Customer Service Department.