How to make a private contract of sale?
When we are going to buy a home, one of the steps prior to signing the Public Deed is the preparation of a private contract of sale.
This document is not mandatory, but it is highly advisable to carry it out so that the operation is carried out with all the guarantees.
What is a private sales contract?
A private sales contract is a private and bilateral document. Through this document, ownership of a property is transferred in exchange for a previously agreed amount of money. It is a totally valid document to formalize a business, such as a real estate sale.
For this reason, the parties involved will be legally obliged to comply with its content, unless it is contrary to what is established by law.
It is precisely because of its legal validity that it is very important to be informed and understand each of the clauses set forth before proceeding with the signature.
What does the contract have to include?
The contract must specify the final price of the property and the method chosen to do so. The house may be paid in full at the time of signing or through deferred payments after the granting of the public deed.
If a deposit contract has been made before the elaboration of the private contract, it must also be specified.
Identification of the selling party
The selling party of the contract must be correctly identified for signature.
If a private owner cannot appear physically, a suitably empowered legal representative must attend. If the owner has given a power of attorney to another person, they must present an authorized notarized copy before proceeding with the signature. In no case may only a simple photocopy be submitted.
In the event that the home to be sold is a marital home, the private contract must be signed by each of the spouses.
If, on the other hand, the seller is a real estate agent, they will be in charge of signing for the selling party.
If the property to be sold is an inherited home, make sure that all the heirs have the correct documentation for the sale.
Expenses of the sale
Unless otherwise specified in the purchase contract, the expenses must be distributed as follows:
- Seller: will assume the payment of the Municipal Plusvalía and the original copy of the Deed of Sale.
- Buyer: each one of the necessary copies of the contract of sale, registration fees and the rest of the taxes.
It is very important to check if there are charges on the house. For this, a simple informative note must be requested from the Land Registry.
If the apartment is located within a community of neighbors, it will also be necessary to check that it is up to date with the community fees, we can request them from the community administrator.