Are you going to formalize the purchase of a home and you are not sure what points should be included in a property sales contract? In this post we will tell you about them.
First of all, you should know that the sales contract is the document that contains the obligations and rights of both the buyer and the seller. Below, we present a list of the basic clauses that this contract must contain so that you don't miss anything.
Clauses of the property purchase and sale contract
Property sale price
The contract must include the sale price agreed between the buyer and the seller, regardless of the appraisal value of the property, which is the reference that the bank usually uses to grant the financing. It must also reflect the amount given as a reservation , an amount that is given to the seller on account and that is subtracted from the final price. This is what is known as the deposit contract and which we have already talked about on other occasions.
Details of the house
It is essential to carefully collect all the details of the house being sold: exact location, square footage, annexes, etc.
Property delivery date
The contract for the sale of a property must state the specific date on which the seller will hand over the keys to the house to the buyer, at which time he or she will become the new de facto owner.
Who should be responsible for the costs and taxes associated with the sale?
Generally, unless otherwise agreed, the buyer is responsible for the notary, registry, agency and Stamp Duty (AJD) fees. The seller is responsible for paying the Capital Gains Tax.
If the property has any outstanding community fees or property tax, the most logical thing is for the seller to assume them. However, it will depend on what is negotiated between the parties.
It is essential that it is recorded in writing that the property is free of liens. Please note that as long as a property has liens, the debt will fall on the owner.
Penalties
The document should clearly state the penalties established for both the buyer and the seller in the event that they fail to comply with their commitments. For example, it should stipulate what compensation the buyer will receive if the house is not delivered within the agreed period, or if the buyer does not pay the agreed amounts at the agreed time.
Remember that each and every page of the contract must be signed by both parties. And although the private agreement to buy and sell is binding on both the buyer and the seller, it is not a bad idea to make it a public deed and register it in the Property Registry.