If you have visited the Aliseda Real Estate website and seen the home of your dreams and want to buy it, but you do not have enough funds at the moment, this article is for you. Today we tell you how to carry out a deposit contract and reserve your future home.
What is the earnest money contract?
Before starting to explain how to do it, we will start with its definition. A deposit contract is a formal and private agreement signed by both the seller of the property and the buyer, stating that the seller cannot sell the home to anyone else and a deadline for signing before a notary for the sale is agreed upon.
That is, whoever sells the property agrees to deliver it in good condition and according to the agreed conditions. And, on the other hand, the buyer reserves the right to purchase, in exchange for a predetermined amount of money, on account of the total price of the property.
How much money should I leave as a down payment?
As a general rule, between 5% and 15% is left, 10% being the most common, of the total value for which the property is sold.
Types of deposit contract
There are 3 types of deposit contracts, depending on the needs that may arise for both the buyer and the seller.
Penitential earnest money contract:
It is the price that the buyer of the property or the seller must pay, in case of withdrawing from the purchase and sale contract before carrying it out, and they are usually penalized by having to return double the amount delivered. It is the most common of the 3.
Criminal deposit contract:
The objective of this contract is to fulfill, yes or yes, the purchase and sale contract. In fact, according to the civil code, if one of the parties does not comply with the contract, they must face the compensation for damages dictated. Furthermore, it is usually settled before the courts.
Confirmatory deposit contract:
The confirmatory is the simplest of the 3 contracts. This contract confirms the sale and acts as a guarantee for both parties. If it is not complied with in this case, the reservation of the property would not be automatically lost, but rather it would be necessary to go to trial, where the consequences of this non-compliance would be determined.
What data must be included in a deposit contract?
Regardless of the type of deposit contract you are going to use, this is the information that must be included:
- Personal data of both parties, including ID.
- Relevant information about the property, that is, the address, registration description, cadastral reference number, occupancy certificate, etc.
- The sales price for which the property is purchased and the way to pay.
- Thus, we ensure that it does not vary in the future.
- The deposit that has been delivered in the deposit contract. The date on which the sale of the property will be formalized.
- The expenses that this transaction entails and who will pay them. We recommend adding charges or any lien that may exist on the home
Now that you know what a deposit contract is, you can continue taking a look at our website and get the home of your dreams.
