Many clients find themselves confused about a crucial aspect of buying a home. There are two primary methods for completing a property transaction. First, you can sign an agreement with a developer.
The developer/promoter is legally obligated to guarantee your payments and refund any amounts if issues arise or if the project is not completed on time. This arrangement offers substantial protection for buyers. Alternatively, you may choose to and enter into a construction contract with a builder.
In this scenario, the situation changes significantly. Once you acquire the land, you become the legal owner and, consequently, the “developer” or “promoter” of the project. This distinction carries substantial legal and financial implications, as we will explore further.
What happens if I become the developer? Basically, that you will be held legally accountable for everything. This includes interactions with local authorities, public entities, and more. If any issues arise concerning permits, construction compliance, or administrative authorisations, you will assume complete liability.
This reality emphasises the importance of thorough planning and adherence to regulations, as the financial and legal repercussions of any missteps can be significant. Making sure that the project “sold” to you by the builder can be legally executed is key. Checking with the Town Hall the to the plot, what planning permissions are required, and what other authorisations you may need is of th.
