🏠Introduction
Madrid’s property market attracts thousands of foreign buyers — but not every transaction goes smoothly. Whether you’re facing a construction delay, a misrepresented sale, or a breach of contract, it’s critical to understand your legal options. This guide covers the most common real estate disputes in Madrid and how to resolve them through litigation.
🏗️ 1. Common Real Estate Disputes in Madrid
Madrid’s booming property sector also brings legal risks, especially for non-residents. Typical disputes include:
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Developer breaches: late delivery, construction defects
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Misrepresentation: false property descriptions or hidden debts
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Deposit issues: losing your reservation deposit (arras) unfairly
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Boundary disputes: unclear property lines or shared walls
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Illegal builds: no planning permission or zoning violations
đź“Ś These cases often involve civil courts or special real estate litigation lawyers.
đź“ť 2. Construction Defects & Delays
If a property was delivered late or with serious flaws, you can take legal action against:
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Developers (for breach of contract)
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Architects or engineers (for professional negligence)
Spain’s LOE Law (Ley de Ordenación de la Edificación) offers buyers protection for up to:
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1 year for minor defects
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3 years for habitability issues
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10 years for structural flaws
➡️ These deadlines are strict — act fast.
đź’¶ 3. Can You Get Your Money Back?
Yes — courts can award:
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Refund of purchase price or deposit
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Compensation for damages (e.g., hotel stays, loss of use)
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Cancellation of the contract if there was fraud or non-compliance
Litigation may also force the seller or developer to complete agreed works, if repair is preferred over cancellation.
đź“Ť 4. Where Are Property Disputes Handled?
Real estate and construction disputes in Madrid go to the Juzgado de Primera Instancia (First Instance Civil Court), unless:
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There’s a commercial element (handled by Commercial Courts)
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You are suing a government body (Administrative Courts)
Your case is assigned based on the location of the property — not your country of residence.
👨‍⚖️ 5. Why Foreign Buyers Need a Litigation Lawyer
Most foreign buyers:
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Aren’t familiar with Spanish contracts
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Sign without fully reviewing urban planning records
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Don’t know about liens, licenses, or property encumbrances
A litigation lawyer can:
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Review your purchase or construction contract
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Help you recover deposits
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Initiate a lawsuit if negotiations fail
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Represent you with power of attorney
💡 Don’t rely on agents — they are not legal professionals.
🌍 6. Real-Life Cases in Madrid
At Borderless Lawyers, we’ve handled cases like:
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UK buyers losing €50,000 deposits due to arras misuse
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Delays over 24 months with unfinished luxury flats in Salamanca
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Hidden zoning violations preventing renovations
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Lawsuits against developers who abandoned projects post-deposit
đź“© Conclusion & CTA
If you’re facing a real estate or construction dispute in Madrid, don’t wait until it escalates. A skilled litigation lawyer can protect your investment and help recover your losses — even if you’re abroad.
👉 In a dispute over property in Madrid?
Get help from Borderless Lawyers – we connect foreign buyers with trusted legal experts who speak your language and understand your needs.