Guide to Private Purchase Contracts - Information from Sun Lawyers

Find out more about Private Purchase Contracts - a vital step to achieving the dream of buying a property overseas. As one of the most important documents you will sign when buying a property in Spain, it is essential that you refer to legal advice on the Private Purchase Contract. 

Once viewing properties seriously, you should ideally have done your Power of Attorney with your lawyer so that you have your NIE number(s) and your bank account open. After finding a property and agreeing a price with the vendor, you should expect to sign a reservation contract with the estate agent, as well as paying a reservation deposit which will remove the property from the market. This acts as a protection and prevents any counter-offers on the property.

After the reservation contract, your lawyer will check:

• The property is fully listed on the land registry.
• The property is debt free (save for any mortgage that the current owners may have).
• The owners have the legal right to sell the property.
• There are no other rights or claims outstanding that will stop the smooth transfer of ownership

Be sure to let the estate agent know which law firm is representing you.

If these points are all fulfilled, the lawyer will begin drafting the Private Purchase Contract, including:

• The details of the buying and the selling parties.
• The agreed purchase price.
• The condition of the property at the point of signing.
• Documents relating to the sale that the vendor will need to have such as habitation certificate, proof of payments for alterations, licenses etc.
• Penalties for backing out of the agreement.
• When the signing is to take place.
• How any disputes that may arise will be settled.

The contract will be drafted in Spanish and translated for you by your lawyer. Before you sign the contract, your lawyer will talk you through the clauses. Upon signing, the purchaser will pay the balance of 10% of the purchase price.

If you wish to pull out, you forfeit your deposit. If the Vendor pulls out, they are to return the deposit and the same amount again. This ensures that the vast majority of signed contracts go forward. 

For more information, please CLICK HERE TO contact Sun Lawyers: SUN LAWYERS SPAIN