Amounts delivered on account to the promoter
Protection for homebuyers in development.
The Seguro de Cantidades Entregadas a Cuenta (Insurance of Amounts Delivered on Account) is a mandatory surety insurance that protects home buyers by ensuring the return of their down payments in the event of the promoter's default.
The Seguro de Cantidades Entregadas a Cuenta (Insurance of Amounts Delivered on Account) is a type of surety insurance, mandatory by law, where the policyholder is the individual or legal entity that carries out a housing promotion, and the insured are the buyers of those homes. This insurance is essential to ensure the safety of the buyers during the acquisition process.
Highlights
The Seguro de Garantía Inmobiliaria (Real Estate Guarantee Insurance) protects buyers and developers, ensuring transparency, compliance with deadlines, and the return of contributions in case of defaults.
Legal Obligation
It is an essential requirement for all housing promotions, ensuring consumer protection.
Coverage of Amounts
Guarantees the return of the amounts paid as a down payment by the buyers if the construction does not take place or if the deadlines are not met.
Transparency in Promotion
It fosters trust in the real estate market by ensuring that delivery promises are fulfilled.
Protection during the Promotion
The insurance is in effect from the signing of the purchase agreement until the delivery of the necessary legal documentation for the delivery of the house.
Coverages
The obligations of the insurance are determined in the sales contract and refer to the delivery of the home. The amount to be guaranteed is the amount delivered or to be delivered by the buyer as a deposit for the final price of the home, excluding the amounts to be delivered at the signing of the deed and the handover of keys, as well as the mortgage loan. These amounts will be increased by VAT, plus the current legal interest. The insurance takes effect from the date of signing the sales contract between the developer and the buyer, and is in force until the corresponding legal documentation is obtained that allows for the delivery of the home.
Amounts delivered on account to the promoter
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Frequently asked questions
Who is obliged?
All natural or legal persons promoting rental housing, Official Protection (VPO) or Price Controlled (VPT) are required to subscribe to a surety insurance policy. This policy guarantees buyers that the amounts they deliver to the promoters will be returned if the construction of the homes does not take place or if it is carried out outside the deadlines agreed in the purchase contract. This is regulated by Decree Law 20/2015 and Law 38/99 on the Regulation of Construction.
When is it taken out?
According to current legislation, it is mandatory to contract a guarantee insurance policy at the beginning of the promotion.