The Spanish Government has passed laws in order to protect the buyer from some of the dangers that might arise in this type of purchase.The Spanish law protects the buyer when instalments are paid in advance to the promoter in the Act 57/1968 (Ley/57/1968, reguladora de las percepciones de cantidades anticipades en la construccion y venta de viviendas).

This Act compels the promotor to supply the purchaser with a guarantee to refund the buyer all the instalments paid in advance of completion, along with 6% interest per annum, if the construction is not started or completed at the contractually agreed times. There are two types of guarantee that can be provided by the promotor. An insurance policy which is issued by an authorised company, or a bank guarantee issued by an authorised bank.

The promotor also has the obligation to deposit the amounts received from clients in a bank or special bank savings account kept separate from all the promotors other funds. The amounts deposited in these special accounts are only permitted to be used for building purposes. In your case your lawyer should check the promoter complies with these requirements (as well as his usual checks) in order to give you full protection in your purchase. In addition if your lawyer is negligent you are also protected by his civil liability insurance provided by the Law Society with which he should be a registered member.