Q. We have paid a deposit to an international property developer to reserve a villa in Spain. Our intention is to fly out in May on an inspection tour laid on by the developer. However, they have asked us to sign a preliminary contract and have sent this to us now which is ringing alarm bells. Is this procedure correct? I was under the impression that our deposit should be sufficient goodwill?

A. I would strongly advise not handing over either deposits or reservation fees without first inspecting the property/plans and/or taking proper legal advice from an independent English-speaking lawyer to advise you that the transaction is a sound one. At present, the developer has €2,000 of your money and you have absolutely nothing in writing except a tenuous and non-legally binding verbal agreement. In my view, it is a recipe for disaster. I suggest that you find such a suitable lawyer quickly, have them check the credentials and previous building history of the developer and ask the developer to put his lawyers in touch with yours so that a proper, binding contract which protects your interests can be drawn up. Until then, do not sign anything, nor release any further monies.