viernes, 17 de julio de 2020
Penitentiary Arras Contract
From Marti Projects S. L. we have already published information on the different types of purchase-sale contracts that can be used when formalizing the acquisition of a property. We give a special space to the Arras Contract since it is the one that is most often used. We analyze what data should appear and the obligations it includes. Generally when mention is made of an Arras Contract, it usually refers to the Penitential Arras Contract regulated in article 1454 of the Civil Code. There are two other types of Arras Contracts; Confirmative Arras Contract and Criminal Arras Contract and it is convenient to specify what type will be used in the legal document since the implications and requirements of each modality are very different.
Penitentiary Arras Contract and its obligations
The signing of this contract commits both the buyer to acquire the home, and the owner to sell it, in a term and conditions agreed between both. In addition, it involves the payment of an amount of money (down payment, as a signal, showing serious interest in the acquisition of the property) on account as proof of this commitment.
This type of contract can be terminated by both the buyer and the seller. If it is the buyer who decides to terminate the agreement, he will lose the money deposited in the act of signing the Penitentiary Arras Contract. On the contrary, if it is the seller who decides to cancel the operation, he will have to pay the buyer double the amount contributed on account in the same act previously mentioned.
Data to be included in the Penitentiary Arras Contract
- Details of the parties appearing, both that of the seller and that of the buyer: The Penitentiary Arras Contract must reflect the name and surname, marital status, address and DNI. In the event that a legal entity (Companies or other entities) intervenes in the operation, it must detail the CIF, the data of the company deed of incorporation and the power of the legal representative.
In the event that the house is purchased as a couple:
For married couples in a property separation regime or this property is acquired without being married or we simply make this purchase together with another person, it is necessary that all future owners appear and sign.
For married couples under community law, the two spouses do not have to appear, neither in the signing of the pre-contract nor in the final deed. A single firm makes the purchase of the home effective and it goes directly to the community property company.
It should be borne in mind that in autonomous communities such as Catalonia, Navarra or Aragon there are different marriage regimes when applying the corresponding legal framework.
If the property comes from an inheritance
The name of all the heirs who sell and they can must appear on the Penitential Arras Purchase Agreement. Designate one of them to act as legal representative or attend the signing, a detail that must also appear in the Penitentiary Arras Contract.
- Property data: exhaustive description and possible charges. Provided in the documentation obtained after requesting a Simple Note in the Property Registry or in the Mercantile Registry if it is new construction homes, which certifies that the property complies with all legal guarantees.
- The Total Price and the Amount of the Arras themselves; That is, the agreed amount that is delivered on account, this amount is discounted from the total price of the property and usually ranges around 10% of the total price.
- The payment method. The disbursement is usually made by a check made out to the property developer in the case of new construction or the owner or owners in the case of second-hand property.
- The Term in which the public deed of sale will be made; Normally this period does not exceed three months.
- Expenses and taxes associated with the sale and who will assume them. In the case of the acquisition of new construction homes, the buyer must pay VAT, while in the purchase of second-hand homes, he must pay the ITP Transfer Tax. The seller, on the other hand, must bear the cost of the capital gain.
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