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5 Things You Should Know About a Home Sale Agreement

The Sale Agreement is one of the most important agreements that are signed throughout life, due to the illusions and investment that are deposited in it.

In addition, most of us that step once in a lifetime, so learning from errors is complicated. In order to face this contract with tranquility, we give you 5 keys with which you will not miss any details.

I found the house I was looking for, is it time to sign?

Only if you have verified that everything is in order, not only the state of the house in question. Do you know if the person selling is the only owner? Is the property you free of any charges? Do you have a certificate of energy efficiency? Is the seller up to date with the commun property fees? If you have answered “no” at any time, do not sign yet. Before signing request a “simple note” (nota simple) to the Spanish Property Registry. this document will give you much of the information you need and asks the seller for the documents that demonstrate these aspects.

Have you signed a pre-sale contract?

This issue is important because if you signed a prior agreement (“señal” (sign), “de arras” …) before signing the contract you may have been forced to sign the contract whatever your circumstances. Unless you signed a pre-contract stating that buyer and seller have the right to withdraw without consequences (penitential annuity), you will have to comply with the agreement if you have not obtain financing from the bank! In these cases, not only will you lose the economic advance you may have paid, but the seller could claim that you comply with the agreement and even have to pay him a penalty.

What does a contract include and who signs it?

If you are going to buy a new property, the contrat will be signed with the administrator or business agent, whereas if the sale is between private individuals all the owners will sign the deed (also in inheritances and community property).

The contract must include the following parts:

Identification of the parties.
Description of the property.
Community statutes and penalties in case one of the parties does not fulfill its obligations (for the seller, to deliver the property and, for the buyer, to pay it).

In addition, the contract must incorporate the agreed price and the form of payment; As well as the distribution of the expenses derived from the operation.

Is it mandatory to sign before a notary?

No, but recommended. A private contract is valid to formalize the sale, but in order to have the property at your name you will need to come before a notary. In addition, the process before a notary adds a security plus.

Do you have to follow more steps after the contract?

Yes. After the signature you will have to pay the taxes derived from the purchase: VAT, if it is new property, or the Transfer Tax, for second hand property. With the proof of the settlement of the tax you can go to the Registry to register the purchase.

One last thing you should pay attention to: Defects of the property or hidden defects.

If you find one, you can claim in the six months after the sale if it is a second-hand property. For new properties, you will have between one and ten years to claim, depending on the nature of the problem.

If these aspects are taken into account, signing the contract should not be problematic. However, going to a lawyer or a real estate agency with experts is advisable to carry out with full guarantees. 

(source: cosas que debes saber del contrato de comrap-venta)

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