New Builds & Off-Plan Risks
Buying new or off-plan properties presents unique opportunities and risks. Learn how to protect your investment when purchasing property that is yet to be completed.
Purchasing newly built or off-plan properties in Portugal can offer advantages such as modern designs and amenities, but also comes with specific risks that buyers should understand.
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Evaluating Developers
Research the developer's track record, financial stability, and reputation before committing to an off-plan purchase. Visit previously completed projects, speak with current owners if possible, and verify the developer's licensing with relevant authorities.
Key Insight
Understanding evaluating developers is essential for a successful property purchase in Lisbon.
- •Consult with verified professionals for personalized guidance
- •Review all documentation thoroughly before proceeding
- •Budget for additional costs beyond the purchase price
Contract Protections
Off-plan contracts should include detailed specifications, clear timelines with penalty clauses for delays, and escrow arrangements for stage payments. Ensure the contract addresses potential issues like construction defects, material changes to specifications, and completion guarantees.
Monitoring Construction Progress
Regular site visits during construction help ensure the property is being built according to specifications. Consider hiring an independent architect or surveyor to assess construction quality at key stages, especially if you're not able to visit regularly yourself.
Key Takeaways
Evaluating Developers: Research the developer's track record, financial stability, and reputation before committing to an off-plan purchase. Visit previously completed projects, speak with current owners if possible, and verify the developer's licensing with relevant authorities.
Contract Protections: Off-plan contracts should include detailed specifications, clear timelines with penalty clauses for delays, and escrow arrangements for stage payments. Ensure the contract addresses potential issues like construction defects, material changes to specifications, and completion guarantees.
Monitoring Construction Progress: Regular site visits during construction help ensure the property is being built according to specifications. Consider hiring an independent architect or surveyor to assess construction quality at key stages, especially if you're not able to visit regularly yourself.
Common Concerns
- Construction delays and quality discrepancies
- Changes to promised specifications
- Developer bankruptcy risks
- Warranty and completion issues
Use Our Property Buyer's Checklist
Our interactive checklist will help you navigate the property buying process and avoid common pitfalls.
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