InmoRakosi Latest News

If I buy a new property and the builder goes bankrupt, will I lose my money?
10 Jan 2025

If I buy a new property and the builder goes bankrupt, will I lose my money?

Lately, we've been receiving a recurring question, and it’s a concern that many people understandably have: "If I buy a new property and the builder goes bankrupt, will I lose my money?" This question reflects the uncertainty that exists in the real estate market, especially for those investing in a property for the first time.

In the past, it was true that if a builder went bankrupt, buyers could lose part or all of their investment. However, over the years, significant changes have been made in Spanish legislation to protect consumers. The Law 20/2015, which regulates consumer rights in the real estate sector, provides a guarantee ensuring that buyers will not lose their money in the event of a builder's bankruptcy.

What does this protection mean exactly? The law states that if a builder declares bankruptcy, the buyer is entitled to recover the amount of money they paid in advance, regardless of the amount. This is because payments made in the purchase of a new property are subject to a series of guarantees designed to protect the buyer in the event of the builder’s insolvency.

Furthermore, the law specifies that the refund of the amounts paid will be made within a maximum period of 45 days from the date the builder formally declares bankruptcy. This is a crucial aspect, as it provides additional security for the buyer, knowing that the process of recovering their money will be quick and efficient, without long delays that could cause further concern.

This legislation is an important measure designed to give buyers confidence and prevent situations like a builder's bankruptcy from putting the money invested in a property at risk. As a result, buyers can rest assured that if a builder declares insolvency, their investment will be protected, and they will not lose their money.

In summary, if you find yourself in this situation, don’t worry: the law is on your side and guarantees the full refund of the money paid in the event of a builder’s bankruptcy, as long as the established procedures are followed. This process will take place within a short peruiod. So, although a builder’s bankruptcy may cause uncertainty, you can be confident that you won’t lose your investment thanks to this legal protection.

WhatsApp