Privat contract to guarantee a country property in Spain
If you are willing to buy a country property in Spain we can give you advice about some necessary rules you should follow: you can find more information on our web site.
THE RESERVATION CONTRACT
Non-refundable deposit contract sometimes used to hold a property for a few days until a formal contract de arras can be signed and a 10% deposit paid. The amount paid is typically 500 to 2000 euros, depending on the value of the property.
Once you have said that you are interested in a property we do not show the property to anybody else. We do not work with gazumping.
THE PRIVATE CONTRACT
When you have found your Spanish property and agreed a price, it is usual to sign a formal, private contract with the seller â€” the contract de arras, which specifies:
- The property to be sold.
- The purchase price.
- The completion date (usually 2 or 3 months from signing the arras contract)
- The deposit paid (10%)
- Any special conditions that have been negotiated.
The 10% deposit is not refundable if the buyer pulls out. However if the seller pulls out or otherwise fails to meet the conditions detailed in the contract, he/she must refund the buyer double the deposit paid.
This arrangement protects both parties, affords peace of mind, and greatly reduces any risk of “gazumping” by the seller.
Note that a contract de arras is always signed. Where an early date is agreed, it is possible to go straight to completion, sometimes in a matter of days.
However, most buyers of Spanish property need some time to organise finance, money transfers to Spain etc, so the 2-3 months private contract-to-completion period allows ample time to arrange funds and find a mortgage in Spain.
You can successfully buy a country property in Spain and also build your dream country home; but some legally steps must be follow to end happily your project.