viernes, 17 de julio de 2020
Purchase and sale pre-contracts
From Marti Projects S.L. We want to inform you of a series of methods and variety of contracts to consider before making the sale of a property in Spain.
After having verified that the property of our interest has all the legal requirements (free of charges, registered in the property registry, etc.) and techniques, the pre-sale agreement can be formalized. This type of document has legal validity and guarantees compliance with the agreement between the seller and the buyer, it establishes the conditions under which the purchase will be made. Before going to the notary to sign the deed of sale, a pre-contract of sale must be drawn up where, among other points, they will be detailed; the reservation agreements, the amount that will be contributed as a signal, the term in which the purchase-sale will be formalized before a notary and the data that will appear in the public deed related to the property.
Different types of Pre-contracts:
1. Arras Contract: Legal document that guarantees the commitment contracted between buyer and seller by delivering an agreed amount, which usually ranges from 5% to 10% of the total value of the purchase-sale amount, which will be discounted from the final price of the sale, this being the most widespread form of contract and it has three modalities:
- Confirmatory Arras: The buyer gives the seller an amount of money as a partial payment of the total price as a signal and reservation, in the event that one of the two parties is dismissed, the other may choose to demand compliance with the agreement or undo it in exchange for compensation for the damages caused
- Penitentiary Arras: In this case both the buyer and the seller can withdraw from the agreement under a penalty. (Normally double the amount delivered by the buyer is required in the event that the seller retracts from the sale and the loss of signal delivered to the seller in the event that the buying party retracts).
- Criminal Arras: Very similar to the previous one, the only difference is that although a penalty for breach of the agreement is applied, the contract can continue, that is, one of the parties claims the other to maintain the obligation contracted and compensation for the damages and losses suffered.
2. Promise of Sale: Document in which it is detailed that if the purchase is not effective, both the seller and the buyer have the right to demand compliance with the agreement and claim damages in court.
3. Purchase Option: An amount is advanced which is called a premium as a reserve and which obliges the seller to not be able to put the property on sale for a stipulated time, if after this time the buyer has not resolved the formalization of the purchase, he may lose the premium.
4. Private Contract: Document between two individuals and without intermediaries. The agreement in it obligates both the buyer and the seller and although it is not formalized before a notary, the seller must deliver the property and the buyer must pay the agreed price.
From our company we hope that this information has been useful to you, to remind you that we have an advisory service and we can help you, inform you and accompany you throughout the buying and selling process, always offering you the best solution based on your needs, requirements and conditions. individuals of the chosen property.
Tips from Registrar of Spain to buy a house in Spain
Penitentiary Arras Contract
Guidelines to follow before purchase
Mistakes to avoid when signing a mortgage
Keep your second residence in perfect condition
A series of tips that will help you sell your property