When dealing with the purchase and sale of a property, it is important that all agreements are in writing. It should not be an improvised act given its importance, so it must have legal certainty in case of later problems.
In Firmalex we are experts in advising on the purchase and sale of real estate, we belong to the Official College of Real Estate Agents of Alicante. We prepare and review contracts of sale and purchase, as well as the previous control of the situation of the property, making a forecast of the total cost of the operation.
Therefore, we know that when buying or selling a house or property we can encounter legal, economic and even urbanistic problems, so it is best to take into account these tips or put yourself in the hands of professionals to guarantee your investment.
Advice for before making the purchase or sale contract:
Obtain a simple note of the property from the Property Registry to check possible encumbrances registered on it, such as mortgages, liens or usufruct rights.
Check with the local Town Hall to ensure that the property of interest is up to date with payments: IBI and municipal taxes.
Contact the residents’ association and ask the president or administrator to issue proof of being up to date with the association’s payments.
If finally, once these documents have been obtained, we have reached a purchase and sale agreement with the owner, it is advisable to put it in writing. This contract is called deposit contract or reservation contract:
The deposit contract must contain the following points:
- Legal details of the buyer and seller
- The object of this agreement
- Identification details of the owner/owners of the property
- Registration data of the property
- Possible encumbrances
- The fixed purchase price
- The part that will be given as a reserve, deposit or deposit at the signing of this contract and the date on which the deed will be executed before a notary and the rest of the amount will be paid up to the agreed sale price of the property.
- Other clauses (we can add as many clauses as we wish or as we agree in order to put in writing any agreement that the seller and the buyer have reached. This could be for example: a deadline for completion of the deed, a time limit for the seller to move in, or any other clause that is considered important).
Once an agreement has been reached and the purchase contract has been signed, one of the parties backs out of the sale, this will have consequences. The seller will be able to keep the part given as a reservation or deposit, which is usually stipulated at 10% of the purchase price, so it can be a significant amount.
Likewise, if the seller backs out to formalise the sale before a notary, he is within his rights as established in article 1454 of the Civil Code, but with a penalty, as he will have to return the deposit doubled, that is, he will have to compensate the buyer with double the amount that was agreed as a deposit or deposit in the signed contract.
Firmalex is a Real Estate Agent in Alicante with offices in Denia and Valencia. Trust in a professional to carry out your real estate purchase contracts. We attend you in Spanish, Valencian, English and German. For further information please contact us: . Read our real estate purchase and sale service.