Caution for amounts paid in advance in housing promotions
It protects the rights of buyers and guarantees the seriousness of housing promotions.
Caution Insurance for Amounts Paid in Advance is mandatory by law and guarantees the rights of buyers, conveying trust and transparency in the home purchasing process.
Surety Insurance for Amounts Delivered on Account is a type of surety insurance, required by law, in which the policyholder is the individual or legal entity that promotes housing, while the insured are the buyers of such housing. This insurance protects the rights of the buyers, providing peace of mind and seriousness in the face of possible eventualities.
Highlights
Type of Insurance
Direct Promotion:
- Free Regime: Promoters and managers are required to guarantee (through bank guarantees or insurance) the amounts advanced by buyers, plus interest, until the obtaining of the first occupancy license.
- Protected Regime: Likewise, they are required to guarantee the amounts advanced by buyers until the obtaining of the final qualification certificate for protected housing.
Communities and Cooperatives
Several individuals come together to promote housing. The entry and exit from the cooperative are free, and the houses remain the property of the cooperators.
Coverages
It covers the legal obligations of real estate developers for amounts delivered as payment to protect the rights of buyers against eventualities such as the non-completion of construction.
Caution for amounts paid in advance in housing promotions
How can we help you?
Contact your specialists for Caution for amounts paid in advance in housing promotions
Frequently asked questions
Who is obliged?
All individuals and legal entities that promote Free Rent housing, Official Protection (VPO) or Appraised Price (VPT) are required to subscribe to surety insurance to guarantee to buyers that the amounts delivered to the promoters will be returned in case the construction does not take place, or if the construction is carried out on dates different from those agreed in the sales contract (according to Decree Law 20/2015, of July 14).
• For Free Rent, VPO or VPT Housing, the policyholder is the promoter of the housing and the insured is the buyer.
• For Communities and Cooperatives, the policyholder is the cooperative or the community of property owners, and the insured are the cooperative members or the community members.
When is it taken out?
It is mandatory to contract a surety insurance policy at the beginning of the promotion. The policy number and the insurance company must appear in all advertising for sale, as well as in the purchase contracts (DIA: Abbreviated Information Document).
How is it taken out?
Sabseg has a team of specialists who conduct a detailed analysis of each promotion to find the most suitable insurance company. The necessary questionnaires include:
Free Rent Housing Questionnaire.
Housing Cooperatives Questionnaire.
Protected Housing Questionnaire.