The Purchase Agreement

When you have found a property which you wish to purchase, and have agreed a price with seller you will then be required to sign a contract and pay a deposit reserving the property, now is the time to instruct your lawyer.

The agent could offer two types of documents; these are the more basic options.

Option 1 - Option to purchase
With this option you pay for the right to be able to purchase the property. The payment will be lost if you do not complete the option within the deadline, alternatively if the owners choose not to proceed then they are liable to refund you double the deposit that you have paid, (usually 3,000€).

Option 2 - Contrato privado de compraventa
This is the better option, a document that is a private contract of purchase and sale. It sets out all the terms and conditions of the purchase. There might be terms, which are not mentioned in the document but implied by law regulating those aspects of the transaction. Either option 1 or 2 should be published in both Spanish and English, paragraph by paragraph, and each page should be signed by buyer, seller or sellers representative.

When using a private contract of purchase and sale it should cover:

The seller

Ensure that the seller is either the registered owner or the sellers representative.

The purchaser

The purchaser must be fully identified. It should be made clear if you are going to purchase the property in your name, joint names or in the name of a company.

The property

The property being sold must be clearly and accurately described. If the property is a new construction you should confirm that the seller has the correct licenses to build and that the house has a license for habitation.

The price

The contract has to contain the full price of the purchase, the deposit that you have paid any stage payments and also deadlines for payments. Please take care, as any money paid in advance will not be returned if you cannot complete your side of the contract. Fixtures and fittings should also be declared if to be included in the price. Do not make your last payment except in exchange for the seller signing the Sale and Conveyance Deed (Escritura de Compraventa) over to you.