Aval bancario

A commitment by which a bank guarantees it will pay an obligation of its client if the client fails to. In real estate it appears in three scenarios: the developer who collects stage payments for a home under construction is legally obliged to secure them with a bank guarantee or surety insurance — if the build is not delivered, the buyer recovers the money with interest by enforcing the guarantee; the tenant who reinforces their solvency by guaranteeing several months' rent; and the buyer who secures deferred payment of part of the price. For off-plan buyers it is the key document: demand the guarantee or the individual insurance certificate with every payment, and keep them. A guarantee costs the guaranteed party money (opening and quarterly fees, and often a pledged deposit), which is why nobody gives one away.