Private Purchase Contract
Definition
The Private Purchase Contract (Contrato Privado de Compraventa or PPC) is the main legal agreement between a buyer and developer in an off-plan property transaction. It sets out all the terms of the sale including the purchase price, full payment schedule, completion date, property specification, bank guarantee obligations, penalties for delay, and dispute resolution. It is signed after the reservation stage and typically involves payment of 10% to 30% of the purchase price.
Why It Matters
The Private Purchase Contract is the most important document in an off-plan purchase. It defines your legal rights and the developer's obligations. An independent lawyer reviewing this document thoroughly before you sign is the single most important protective step you can take.
Where It Appears in the Buying Process
The PPC is the second major stage of the buying process, signed within 30 to 60 days of the reservation. It is the main binding commitment before completion at the notary.
Related Questions
How Does Buying Off-Plan Work in Spain?
Buying off-plan in Spain follows a five-step process: reservation, private purchase contract, staged payments during construction, mortgage approval, and completion at the notary.
Is Buying Off-Plan in Spain Safe?
Yes, buying off-plan in Spain is safe when you use an independent lawyer, verify the developer, and ensure all stage payments are protected by bank guarantees.
What Are the Risks of Buying Off-Plan Property?
The main risks are construction delays, developer insolvency, specification changes and mortgage availability at completion. All are manageable with proper legal preparation.
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