The exchange contract is the contract used when both parties have something that interests the other and they decide to agree an exchange. An example of these kind of contracts could be a house exchange.
By using our legally binding model of exchange contract you can get your document in a few steps. Once you have filled it with all your data (both parties) your document will be generated.
What’s an exchange contract?
The exchange contract is a contract by which one of the parties gives one thing in order to receive another.
For example, two people agree to transfer the domain of one or several things to each other. By doing an exchange contract they obtain an advantage compared to a purchase and sale.
Generally, an exchange contract is very similar to the contract of purchase and sale. In both cases it’s an agreement between two parties whose purpose is to make an exchange of goods to obtain a profit. The main difference is that in the exchange contract goods are exchange for goods, not money.
Depending on what you want to exchange (house exchange, movable property, money, rights…), we can distinguish different models of contracts. Each type of contract will present its own characteristics.
Types of exchange contract: House exchange, movable property, rights and services
By this agreement, parties exchange the ownership of a house, land, premises… for having these equivalent commercial values.
The procedure for exchanging real estate between individuals is relatively simple if there are no current mortgages in the houses.
Requierements for the house exchange
- Properties must be of equivalent value. If the value of the property is not identical, the remaining money is delivered to the equivalence.
- The contract should reflect the value of the property. It is very useful to use an affidavit where they confirm the price of the good they deliver.
- Delivering the goods, usually in a symbolic way, giving the keys in the act of signing the contract.
- To give each other the documents relating to the property of the real estate that in this act each transfers.
- If there is a mortgage, the financial institution will have to approve a new one in the name of the new holder.
- Receipts duly cancelled for potable water and electricity until the date of the contract
- Proof of tax payment tax prior to the date of this agreement.
- Go to the notary to formalize the corresponding deed in the register of the property.
- Liability if the property contains construction defects, aesthetics, etc.
A very usual case in the house exchange is the following: The owner of a building urban land gives it to a developer, so he can build in it, in exchange of houses from the future promotion.
Movable property exchange
The idea behind this contract is the same as the house exchange. The difference is that movable property can be taken to the place of delivery. In many cases, bartering does not require the registration of the owner in the property registry, unless they wish to.
Can be exchanged:
- All kinds of things that can be sold (vehicles, animals, furniture, products of a trade, material of work, etc.)
- It is also possible to exchange one thing for a service, or for a right, as long as the value is equal or close.
Rights and services exchange
Real or personal rights can be exchanged. We are talking about things such as the right of enjoyment, credit law, inheritance rights, etc.
Likewise, it is possible to exchange services: A plumber exchanges his professional services with a painter, provided that the services are equivalent.
If you have any questions, consult with our expert exchange attorneys.