... after paying sums on account for your future home without any guarantee, your money might fly away?

If you are purchasing a home that is not yet finished and the development company asks you to put up "sums on account", you should be aware that the money you hand over is protected in law and the developer is obliged to take out a al bankers’ surety or “bail and bond insurance” to guarantee the reimbursement of all sums paid on account plus the corresponding interest at the legal money rate, if the construction work does not start or is not completed by the agreed deadline.

As for the contents of the contract, the developer is obliged to take out a Collective Insurance Contract to guarantee the payments made by purchasers, as well as an individual insurance policy to complement the former as a guarantee in favour of the Insured when the home is handed over, i.e. the purchase deeds are signed.

Therefore, before delivering any sums of money to the development company, make sure that you are given information about the kind of financial guarantee contracted to provide cover for the advances, as well as the Credit Entity or Insurance Institution the cover has been contracted with. Before you sign the purchase deeds, oblige the developer to give you a copy of the individual insurance identifying you personally as the Insured in accordance with the requirements of current regulations.