Private Purchase Contract
What is a private purchase contract?
Purchasing a property is one of the largest and important investments we make in our lifetime. So how can we protect you with making sure that nothing goes wrong nor you lose anything with this investment?
With making sure that you have all the correct clauses within your private purchase contract.
Once you have chosen your dream property and have agreed the price of purchase with the vending party, you will normally proceed to sign a reservation contract with the estate agent. At this point, you put down a small deposit to reserve and remove the property from the market, this prevents any other potential buyers to visit, or put an offer on the property.
The next stage is to do all of the checks on the property. This is where Lawyers come in. It is our jobs to make sure that the property is fully registered, debt free, that the Vendors can legally sell the property, that there are no encumbrances and much more.
Once we are fully happy with the situation of the property, we then draft the Private Purchase Contract.
What the contract covers
This contract covers important subjects, issues and clauses such as: the details of the Vendors and the Buyers, the price of the purchase, the situation of property and how the property is to be at time of signing, the documents that the Vendors are to provide at the signing (any certificates like the habitation certificate, proof of payments, licences etc), when signing is to take place, clauses of backing out of the purchase, how disputes will be resolved and more.
Once the contract has been agreed between each parties, the contract can be signed. Upon signing, the buyer is to pay the balance of the 10% deposit. In simple terms the first payment at the reservation stage is payment A, and the payment when signing the private purchase contract is payment B. Both payments A and B are to make up 10% of the purchase price.
If a party pulls out of the contract
Here is when all parties can relax, due to normal clause in the Private Purchase Contract which is the article 1454 in the Civil Code which states if the Buyer pulls out of the purchase, they forfeit their deposit, and if the Vendor pulls out, they are to return the deposit duplicated, to the Buyers. This contract binds both parties.
Are you ready to purchase your dream home here in Spain? It is our job to make sure that you are protected with your purchase and make sure that all the legal processes are done to perfection, for you and your investment.