Property purchase and sale contracts: What it is, types and sample model

Are you halfway through the process of buying or selling a property, or are you considering taking the plunge? Buying or selling a house involves many procedures and learning new concepts. Once the deposit has been formalised, the bank chosen and the mortgage accepted, it is time for the buyer to take the final step: signing the contract of sale. To legalise this part of the process, it is advisable to consider several aspects, including making an appointment with the notary to complete the process correctly and to the satisfaction of all parties involved.

Buying a home is a process that can take months or even years. At Prime Invest we guide you through the whole process to make it easier. In this article, we will talk about the last link in the sales process, perhaps the most satisfying step of all. Take note of all the details you need to know before you sign the purchase agreement and finally become the owner of the home you have been looking for so many months. Let's get started!

Guide to formalise the purchase and sale of a newly built property

We have reached one of the most important stages in the sale of your home, the final one and with the guarantee that all parties are in agreement with the terms. However, to prepare the signing document, the buyers and a representative of the selling entity must appear before a notary to read and sign the document. At the final appointment with the notary, the parties must bring the following documents with them:

THE DEVELOPER

• Powers of the signatory
• Simple Status Note
• Certificate of Zero Community and Mortgage Debt
• End of work certificate
• Energy Efficiency Certificate
• Water and electricity installation certificates
• Declaration of responsibility or first occupation permit
• Guarantee on appliances
• And, of course, the best part: keys and access control to the home

THE BUYER 

• DNI or PASSPORT 
• The warranties, if they have been collected and are in your possession
• And, of course, the most important: payment

Payment can be made in three ways: by international bank transfer in advance, by national OMF (Funds Movement Order) transfer or by cheque.

It should be noted that the notary generally requires the following additional documents to be submitted to the representative before the notary's stage is reached

• Construction book
• Ten-year insurance policy
• Community statutes
• Horizontal division

It is almost always the buyer who chooses the notary to carry out the procedures and sign the contracts, since it is the buyer who pays the notary's fees, except the notary's fees for the deed corresponding to the mortgage loan, which are paid by the bank.

What exactly is a contract of sale?

The sale and purchase contract is the legal agreement between the seller and the buyer, in which the seller agrees to transfer ownership of a good or right to the buyer, who agrees to pay a price. 

This contract, which is regulated by the Civil Code and the Commercial Code, is completed with the simple agreement of the good and the price, without the need for formalities, although in cases such as the sale of real estate, the written form is required. This document creates obligations and rights for all parties involved: the seller must deliver the goods and guarantee their possession and quality, while the buyer must pay the agreed price.

How does the sale and purchase contract work?

The deed of sale fulfils several important functions. Firstly, it guarantees the rights and interests of both parties to avoid conflicts and future claims. It also ensures that legal and fiscal requirements are met, such as paying taxes or registering the property. Finally, it also serves as a guarantee of existence, if it reflects the details of the agreement, in case there is a need for legal recourse.

Model contract for the sale of a house

The contract of sale is a document that contains clauses and certain essential elements, such as the identification of the parties, the detailed description of the property, the price, the terms of payment or guarantees, among others. In the following link, you will find a PDF with a model of a purchase agreement.

Formalise your property purchase contract with Prime Invest 

In a situation of buying and selling a new construction property, whatever type of contract is to be used, it is advisable to seek the advice of a specialist in the matter from the outset. At Prime Invest we have a wide range of new construction properties in the most luxurious and residential areas of the Costa del Sol, Ibiza and Punta Cana. 

In addition, our experience and knowledge of property market trends make us your ideal ally when it comes to professional advice on buying or selling a property. Our team of expert estate agents are at your disposal to provide you with property advice and guide you through every step of the buying and selling process. Count on Prime Invest as your ally in making a wise buying decision. Contact us and experience a calm and secure buying and selling process.