What Is Surety Insurance for Real Estate Developers? Key Insights, Benefits, and Legal Requirements
Looking for a simple and legal way to protect your buyers’ advance payments?
We know how challenging it can be to meet all the legal requirements in your development.
That’s why at Acreciente Capital, we don’t just open your Special Account quickly — we also connect you with the top insurance providers in the industry, so you can secure your surety insurance with ease.
Problems securing your buyers’ deposits?
If you’re a real estate developer selling off-plan properties, you are legally required to guarantee the deposits made by your future buyers.
Without this guarantee, you’re exposed to fines, loss of trust, and possible legal claims. Many developers still underestimate the importance of this protection—or wrongly assume that opening a special account is enough.
Surety insurance: your legal ally
There are two legal ways to protect buyers’ deposits:
A Special Account where deposits are held.
A Surety policy or bank guarantee. You can opt for either a bank guarantee or surety insurance.
Surety insurance is a solid, flexible, and widely accepted solution in the industry. It covers the refund of deposits if the developer fails to deliver the homes under the agreed terms. And it’s also easier to obtain than many think.
What is surety insurance in real estate?
It’s a policy issued by a specialized insurance company that guarantees the buyer will get their deposit back if the property is not delivered as agreed.
It covers 100% of the deposits received.
It does not affect the CIRBE (Spain’s credit risk database).
It helps maintain financial flexibility for your development.
How do you apply for surety insurance?
- The developer presents basic project information (blueprints, development timeline, etc.)
- The insurer evaluates the project and the developer’s financial standing.
- If approved, the insurer issues the policy, sometimes intervening in the special account.
- The surety is tied to the special account of the project.
- If the property is not delivered, the buyer receives their deposit back.
Legal obligations under the LOE
The Building Standards Act (Ley de Ordenación de la Edificación – LOE) requires developers to:
Protect buyers’ funds through a bank guarantee or surety insurance.
Deposit those funds in a special account that can only be used for construction-related costs.
Failing to comply can result in fines, administrative sanctions, or even project suspension.
Conclusion: Surety insurance is key
Acreciente Capital works with leading insurance providers so you can secure your surety policy with complete confidence and zero hassle.
Best of all? We help you manage the entire process—from opening your special account to connecting you with the ideal insurer.
Need to open your special account and get your surety insurance fast?
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