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Earnest money contract

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Aspects that we must take care of before signing the pre-purchase of the house

Down payment contracts are essential and, in the vast majority of cases, a very important requirement to seal an agreement for the purchase of a home.

 

It is a contract that binds both parties, so taking an Internet model and filling it out does not seem the most appropriate.

At Inmocodix Soluciones Inmobiliarios we want to explain what fundamental points must be taken into account when drafting a deposit agreement, a document of the utmost importance in the process of buying and selling a home.

  • Simple informative note: it is essential to obtain a simple informative note from the Land Registry before signing the down payment agreement. This document will allow us to see if the property has foreclosures, mortgages or other charges. It is important to analyze it in all its aspects since the new owner will take care of them.
  • Exhaustive inspection of the house: it is important to make several revisions to the property before signing the deposit agreement: turn on the lights, turn on the taps, check that the heating works, observe that there are no visible leaks, etc. It is customary for down payment contracts to specify that the home is purchased “as a certain body.” This means that we buy ‘what you see’, so it is important to do checks.
  • The price: it is essential that the price is perfectly identified in letter and number. For example: 100,000 euros (one hundred thousand euros). This will avoid failures that could be very negative for the parties.
  • Sellers or authorized: it is also key that those who sign as sellers are the owners of the properties or who has the power to represent them. “Buyers will need to check these powers.
  • Transfer and possession of property: the transfer of property and possession must be delivered at the time of the public deed and full payment of the price and not before. If the possession is delivered when signing a deposit agreement, we can find that the buyer has no interest in finishing paying and signing the deed of sale.
  • Down payment losses: it is essential to indicate that if the buyer does not comply, the buyer will lose the down payments delivered; while if the seller does not comply, he must return the folded down payments.
  • Expenses in detail: It is important to clearly identify what expenses each party bears. Not equal expenses according to law or expenses for the buyer except capital gain, etc. Each formula has implications and obligations for the different parties, so no detail should be overlooked.

When buying a home there are many important details that must be taken into account and know its impact from a legal point of view. The clarity with which a down payment contract is written can save multiple future problems. The recommendation is to go to a professional with experience in this type of operations.

At Inmocodix Soluciones Inmobiliarias we are specialized in this type of procedure and our objective is to be able to offer you the best advice thanks to our professionals in continuous training.

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