The purchase deposit

If you made the decision to buy a home, you did the checks and everything is in order, the next step is to reserve the property. The reservation can be made by the payment of a purchase deposit. Keep reading this guide and learn more about how to make your reservation.

Buying a property and paying a purchase deposit

The reservation of property by paying a purchase deposit is made by signing a precontract between seller and buyer. With this precontract they agree the amount of the purchase deposit payment. It will also contain how to continue with the final sale contract. This contract is an agreement of obligatory fulfilment, so it is important to write it in detail. Therefore, we explain the points it must contain and the types of reservation you can use.

Types of property reservation

In order to make a property reservation we have the following options:

• Advance: It is a pre-contract where the parties agree to the reservation of the property for sale. As proof of it, the potential purchaser pays an amount of money in the concept of advance.

• Purchase deposit: It is a sale commitment within a certain period by paying a certain amount, which will be discounted when the purchase is made. If the seller decides not to continue with the sale of the property, he must return the buyer twice the money advanced as purchase deposit. If the buyer decides not to continue, he loses the anticipated amount of money.

• Purchase option: It is an accessory contract that allows the buyer to have a margin of time to decide whether buying the property or find another one. But if after the agreed term the buyer does not exercise the option to purchase, the seller may withhold the deposit if so agreed.

Basic content of the purchase deposit

This precontract should contain the following:

• Description of both parties (buyer and seller): It will contain name, marital status, address and national identity document (DNI in Spain) of both.
• Description of the property: This must include the address, the locality, if it contains parking space or storage room…
• Price: The amount and the date on which the money will be delivered shall be detailed.
• Purchase deposit: The amount will be specified, since this must be agreed in the contract.
• Housing registry: It allows you to verify the ownership of the house, its financial burdens and its description.
• Property financial burdens: they must be collected in the agreement if they exist, so it is very important to check this point
• Expenses: It is necessary to define what the buyer must pay.

Now you know the basic content of the purchase deposit. However, for greater security is advisable to consult with a specialist. Specially in case of buying a new house, as this pre-contract may have different characteristics.

Contact our specialists If you still have doubts about the purchase deposit.