The real estate reservation agreement in Spain. What is it and why do you need it?
The real estate reservation agreement in Spain
We are going to tell you about the “reservation agreement” and how to reserve the right to buy property in Spain. If you have found the real estate of your dream during the guiding tour in Spain and you want to become its rightful owner, it’s necessary for you to sign a special contract with the seller and pay a deposit. After that, the property you have chosen will be removed from the sale (and the review) for other buyers.
So, what actually is “a reservation agreement”?
A reservation agreement is a contract between the seller and the buyer of the real estate, which consists of two printed copies in two languages - Spanish and English. Usually, the contract is signed for a period from 1 to 3 months. And with the mutual agreement of the parties, it can be signed for a longer period of time - up to six months.
The information that can be found in the reservation agreement:
- the reservation agreement contains all the details about the sellers and buyers: full name, address and identity card (ID card, passport, NIE, Residence card and etс.);
- the contract necessarily contains the information about a certain real estate object:
- the address of this property;
- the registration data (or inventory number);
- the description of the property, which specifies the type, size and other important characteristics. It should be pointed out that we check all the real estate for arrears in advance, and offer you only legally "clean" objects;
- the final price of the property;
- an amount of the deposit. On average, it is about from 3 up to 10% of the total value of the property (Typically, it is about 3 thousand euros.) Further, in the reserve agreement, it is fixed:
- expenses concerning purchase and sale. This item fixes the costs and taxes which each of the parties must pay, according to the Spanish laws.
- duties of the parties.
An integral clause that provides for the responsibility of each of the parties for non-compliance with the terms of the contract. For example, if the buyer breaks the deal, the deposit is NOT returned. If the seller refuses the sale and disrupts the deal after the signing of the reservation agreement, he must return the deposit in the double amount to the buyer.
You sign the reservation agreement with the seller in the presence of the agency manager with whom you buy the property. If the seller cannot be present for various reasons at the day of signing this document, the agreement is signed with the company which represents this object. After that, the agency transfers money to the account of the owner of the real estate.
You can also sign the reservation contract remotely. By making your choice blindly, you risk being unhappy with the purchase. Therefore, invite you to a guiding tour in Spain.
Remote reservation is convenient in the exceptional cases when you decided to buy the real estate having already arrived home from Spain. To do this, you should send us your data, so we prepare an agreement, where the amount of the deposit, the cost of the property, the calculation procedure and the duties of the parties are indicated. A title deed (a certificate of ownership) is also attached to the document. We send you the contract, you print it, sign it, scan and send it us by e-mail.
After that you pay a deposit + bank commission and send us a copy of the payment document. From now on, your future real estate in Spain is removed from the sale from all sources and awaits your arrival.
Having signed the reservation agreement, you are already halfway to your dream. It remains only to sign a contract of sale at a notary and pay the remaining amount. You can always get more detailed consultation about buying the real estate in Spain by contacting the specialists of the WTG Spain Company by calling the hotline or ordering a callback.
We are always happy to answer all of your questions. We sincerely hope that buying property in Spain will be a pleasant event in your life.
WTG Spain - Your home in Spain is waiting for you.