Buying a property is one of the most important investments we make throughout our lives. Therefore, we would like to summarize the most important aspects.
Once you have chosen the property you wish to purchase and have agreed the final price of the sale , we proceed to reservation of the property so that it can be removed from the market, thus preventing any other potential buyers to visit.
It is normal to sign a private contract between vendor and purchaser and although it is not mandatory and is not entered in the Registry the law considers it a valid contract and signatories agree to comply with what is written as well as any clauses that have been determined by both parties. The private contract must take into account important issues such as the following:
Who signs. When a company is selling the promoter or a director who has the power to sign on behalf of the company. When it is an inherited property the heirs must sign or their legal representative. When it is a family home both spouses or any other part owners of the property must sign.
One of the most fundamental things is to check that the property is free of liens, make sure you are aware of any costs involved which in some cases the law can require that the buyer should take care of them. However, they usually agree in the private document who bears the costs, except for the Plusvalía that by law is the responsibility of the seller.
When the private contract is signed, the reservation payment and the payment on signature of the private contract normally are equal to 10% of the total sales price. If the purchaser is the one who cancels the contract they lose the amount paid. If the vendor cancels the contract they must pay back double what is received except for any clauses that have been inserted in the contract.
If you are purchasing a property it is most important to take legal advice prior to signing the private contract
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