REAL ESTATE – MARBELLA WOHNEN – Is it possible to terminate the reservation contract for a home in Spain?

Is it possible to terminate the reservation contract for a home in Spain?

The reservation contract for a house, also known colloquially as a “reservation” or “signal”, is a formal agreement that legally binds the two parties, in this case the seller and the buyer, to carry out the purchase and sale of the property in question, after has been verified that it has the expected technical and habitable characteristics.

In this agreement, the buyer must pay a certain amount in advance and be sure that the sale will take place.

At first glance, this legal agreement may seem like an uncomplicated matter, however, this is not the case in all cases. There may be situations in which this contract does not need to be executed and, more importantly, many people are probably unaware of the consequences and implications that it entails.

What is a housing reservation contract?

The reservation document of a home is neither more nor less than a contract that will not only guarantee your intention to buy the property in question, but will also serve as a guarantee to the seller.

The mechanics are simple. Through this agreement, the buyer reserves a home in exchange for delivering an amount on account of the price of the house. For his part, the seller undertakes to deliver the home within the agreed period.

Is there the option to cancel it?

The key to any home reservation contract is that it is a document that commits the parties, unless a clause is included that says otherwise, none of them can back out.

Exceptions to terminate a housing reservation contract

As we have pointed out previously, in the case of the reservation contract, the possibility of recession is not contemplated, and there may even be compensation for damages or losses. In addition, the forced sale of the home or the payment of its total amount could even be claimed.

The legal termination of the reservation contract may only occur without any retaliation, if the possibility of doing so in some specific circumstance is specified in any of its clauses, or if there is a breach of the agreement. For example, if the property does not match what was previously specified. In this case, the existence of abuse or negligence could be alleged and if the seller admits it or a court in the event that the seller refuses, it will be sufficient cause to terminate the contract in an exceptional and justified manner.

This is why it is advisable at all times to reflect very well before proposing or agreeing to sign a reservation contract for real estate or hiring the services of a Real Estate agent so that we are well advised at all times.

Main differences between the reservation contract and the deposit contract

Although a priori they may seem the same, the deposit contract and the reservation document of a home have differences.

Although it is true that the first is also a document that seals the intention of the buyer and seller to complete the sale of a home and, as with the reservation, an amount is delivered on account of the price of the home, in the case of the latter, it usually refers to the new construction housing reservation contract.

But the differences go further. While the Civil Code serves as the legal framework for the down payment contract for a home, the reservation document for the home is not regulated, so that, in practice, the legal certainty of the latter is less.

In addition, the first can be terminated assuming the consequences of the type of deposit signed (in general, compensation for desisting from the sale) while the home reservation contract could only be terminated if a clause in this regard is included in the contract. same and that is not usual.

As you have been able to verify, there are numerous issues to which special attention must be paid in a real estate purchase. For this reason, our recommendation is that you hire a Real Estate Agent, an agent who is an expert in real estate purchases who will help you throughout the purchase process so that you do not have to worry about a thing.

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When buying a home, it is advisable to seek advice from a real estate expert, such as Marbella WOHNEN, who will help you throughout the process and eliminate any doubts you may have.

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