The reservation and the legal purchase process in Marbella24 Mar 2020 | Buying and Selling FAQ
We have reached an agreement with the seller and have already set the purchase price of our house in Marbella. It’s time to speed up the steps, which are largely bureaucratic, to finish as soon as possible and start enjoying the new house.
We insist on the importance of checking the timing of our personal availability and the availability of the necessary funds for the purchase, without this, the end of the operation could be unpleasantly delayed for everyone.
It is also important that those involved in the purchase, that is to say, the agents, advisors or lawyers of both parties, act diligently in the sense of contributing to the speeding up of the operation in the case of any obstacle arising, proposing solutions opposed to impediments to its successful completion as professionals that they are.
The first action to carry out is the delivery of the amount stipulated as a reservation of the house, stated in a reservation contract, being customary in our area for the amount of 6.000 euros on account of the total price agreed. With this signed reservation, the property is withdrawn from the market and a reasonable time is given to the buyer between 15 and 20 days, so that his lawyer can make the relevant checks on the legal status of the house, the existence of possible charges, debts or any situation that should be taken into account when establishing the form of payment, which is known as Due Diligences.
Once the state of the house has been checked and all the elements are known, the next step is to draw up and sign the earnest money contract with delivery of 10% of the price, a document which will include each and every one of the circumstances that affect the purchase and the form of payment, if it is necessary to make any type of retention on the price for payments that are pending on the property, withholding of 3% of the price on account of non-resident tax if applicable, withholding of the amount of municipal capital gains tax on urban land if the seller is a non-resident and any other circumstances that may be withheld from the price and agreed between the parties. This is the document prior to the deed being signed at the notary’s office.
The deposit contract also establishes a time limit for the signing of the deed of sale at the notary’s office chosen by the buyer, as well as a possible penalty with the obligation to return double the amount paid if the sale is not signed on the date set because of the seller, and if it is the buyer’s fault, he will lose the amount paid. This is a mere formality that gives security to both parties but, in practice, when everything is agreed between the parties, there is no problem.
Finally, and we repeat, if all the aspects have been foreseen in advance, on the date established in the earnest money contract, the day finally arrives when the public deed of sale is signed at the notary’s office, after which both buyer and seller leave with the satisfaction of having achieved their purpose. It’s time to enjoy your new purchase.
Benarroch Real Estate will accompany you during the whole process so that you feel safe and can consult us about any kind of doubt or issue you need to know about the details of the reservation and the legal process of buying your home in Marbella.
Article by Brice Benarroch Mennessons24 Mar 2020