What Is a Special Account for Developers and Why Do You Need It?
The Problem That Could Cost You Dearly
When a buyer pays deposits for an off-plan home, those funds must be protected by law.
Many real estate developers unintentionally fall out of compliance, exposing themselves to fines, legal claims, and project risk.
Law 57/1968, the Building Regulation Law (LOE), and banking compliance rules require a Special Account to receive those funds. Failure to comply damages your reputation and puts your development’s legal security at risk.
What Is a Special Current Account for Developers?
A Special Account for Developers is a mandatory, independent bank account used to collect buyer payments for a specific real estate project.
These funds must be used exclusively for construction and not mixed with other accounts or purposes.
Law 57/1968 requires that deposits be held in a separate account, and must be covered by a guarantee (either a bank guarantee or surety bond)
Why Is This Account Mandatory?
Because that’s what the law demands. Law 57/1968 states:
Each project must have its own separate bank account
Funds cannot be used for anything other than construction
A guarantee (bank or insurance) must protect the buyer in case of non-delivery
Not complying means facing economic penalties, legal claims, and reputational risk.
Benefits for Both the Developer and the Buyer
🧑💼 For buyers: Peace of mind and legal security — knowing their money is protected
🏗️ For developers: Legal compliance, fewer penalties, and stronger professional image
It also makes you more trustworthy to banks and insurers.
How Does It Work in Practice?
You open a dedicated Special Account for the project
Buyers’ deposits are deposited directly into that account
Funds are used exclusively for the construction of the development
A guarantee (bank or surety) is linked to the account
If something goes wrong, the buyer can recover funds through the guarantee
It’s a protective and transparent process for developers and their clients.
Conclusion: Protect Your Project and Build Buyer Trust
The Special Current Account is more than a legal obligation — it’s a tool for managing real estate projects with confidence, transparency, and professionalism.
Follow the law, safeguard your buyers’ money, and protect your development’s future.
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