The private sales contract
When we are going to buy a home, one of the steps prior to signing the Public Deed is the preparation of a private sales contract.
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 purchase 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 find out and understand each of the clauses set forth before proceeding with the signature.
What has to include the contract?
- Housing prices
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 was made before the private contract was drawn up, it must also be specified.
- Identification of the selling party
The seller of the contract must be correctly identified for the signature.
If a private owner cannot appear physically, a suitably empowered legal representative must attend. If the owner has given someone else a power of attorney, they must present a notarized copy before proceeding with the signature. In no case can only a simple photocopy be presented.
In the event that the home to be sold is a community home, the private contract must be signed by each of the spouses.
If, on the other hand, the seller is a real estate agent, he will be in charge of signing for the seller.
If the property that is going to be sold is an inherited house, it is necessary to make sure that all the heirs have the documentation in order for the sale.
Expenses of the sale
Unless otherwise specified in the sales contract, the expenses must be distributed as follows:
- Seller: will assume the payment of the Municipal Capital Gain and the original copy of the Deed of Sale.
- Buyer: each of the necessary copies of the sales contract, registration fees and the rest of the taxes.
It is very important to check if there are charges on the home. To do 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 verify that the community fees are up to date, we can ask the community administrator for them.