The literal definition of the Deposit Agreement
“It is a private contract where both parties (buyer and seller) agree on the reservation of the sale of property or real estate (such as a home), giving as proof an amount of money as a deposit.
In spite of being a private contract, it is of vital importance to write it well, since in most of the occasions the one that will end up signing before notary will be a more or less exact copy.
What must be taken into account in the deposit contract?
The most normal thing is that the signal that is agreed is paid by means of transference or with bank check, since it is not possible to give in cash an amount greater than 2.500€, nevertheless, it will depend on what the parts decide.
The amounts that are delivered as a deposit, will be subject to VAT and will be deducted from the total amount of the transaction. The remaining amount will be subject to transfer tax.
Obviously, it must be stated in the deposit contract that the amounts delivered as a deposit will be deducted from the total price agreed, and in the Notary’s office it must be stated, so that the amount is the exact one agreed.
The normal delivery 10% of the amount of the transaction. Although it is true that if the buyer prefers, the amount may be lower if he decides to back down, although both (buyer and seller) must agree on this point.
The law provides that in the event that the sale is not closed within the time provided in the contract, both parties are released from the commitments made and the culprit loses the amount of the signal. If the fault is of the seller, he must return double what he received. If the buyer is otherwise at fault, he loses the deposit he gave. There are even times when it is agreed that if the buyer, did not get the necessary amount in the mortgage, he will be returned what was delivered on account.
Normally the term specified in the deposit contract is two months, which gives more than enough time to formalize the mortgage and make all the necessary arrangements with the agency and banks.
Finally, this contract may reflect who will be responsible for the expenses arising from the sale purchase.
Normally, the seller only bears the costs of capital gains, and the buyer the costs of registration and notary.
It is recommended that if a property is going to be put up for sale, the owner, commission an appraisal of it, and so, whoever is interested, it will be easier to know with the bank, whether or not you can opt for the property.
Deposit contracts do not only apply to the purchase and sale of real estate, but also to garage spaces, if they are sold independently of the property.
What must be included in the deposit contract of a real estate agency?
Apart from the logical (price, property, and name of those involved) a deposit contract contains the following details.
The exact address of the property.
The agreed sale price. In the case of a new property, it is advisable to state the price of the property, with a breakdown of the VAT and the agency or intermediation commission if necessary.
Finally, the name of all persons who sign the document as owners must be stated. In the case of a marriage under a regime of separation of property, the names of both spouses must be counted.
Maximum term to formalize the purchase sale.
Request a simple note, and include the property number, the description of the literal property of the simple note and if possible, the catastro reference number.