The reservation contract when buying a property.

• POSTED ON - March 15, 2018
• BY - propertysolicitor

• Buying Property in Mallorca

Beware of the reservation agreement contract.

What is it?

The reservation contract, in a real estate transaction is a document by which the seller undertakes to remove the property from the market for a few days in order to have time to prepare an option or deposit contract or to prepare the sale.

What should it contain?

The reservation contract must contain:
.-The object of the sale and purchase
. -Holder
.-Buyer
.-Purchase and sale price
.-Period of time during which the seller removes the property from the market.

What should it not contain?

Some buyers sign the reservation contract with the real estate agency without consulting their lawyer. When they come to this one, what they have signed is a document called a reservation contract but which irremediably conditions the future option contract or the deed of sale.

Sometimes the real estate company will present them with a contract in which the buyer assures that he has examined the property, knows its physical and legal condition and accepts it as it is.
Once this is signed, the buyer will no longer be able to sign an option contract conditioned on the legal ownership of the property being purchased.
If on Monday the buyer signs a reservation contract in which he states that he knows the legal status of the property and accepts it, a week later he will not be able to sign an option contract committing himself to buying the property only if it complies with all the urban planning regulations and is free of charges.

Therefore. Before signing the reservation contract, consult with your lawyer.
If you cannot do so, sign a document as simple as possible. The buyer pays a small amount so that in exchange the seller withdraws the property from the market for a few days until the option or deposit contract is signed. The conditions of the sale and purchase will be defined later in the option or deposit contract, never on the reserve contratc.

Toni Marqués. Real Estate specialist

Don’t hesitate to contact me for free information.  +(34)678216706   toni@palmalawyers.com

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