The sales contract

The sale of a property off plan often raises fears and doubts to the client because the housing can not be verified prior to purchase. One of the most important steps in this process is the signing of private purchase contract between two parties that will be presented to the public at the time of delivery of housing.

This contract is valid even if not formalized before a notary and binding upon the parties in all respects. In accordance with Royal Decree 515/89, the contract also will have to be written with absolute clarity and simplicity, responding to the principles of good faith and fair balance of the obligations of both parties, which is expressly contain the prohibition clauses:

• Do not indicate precise data on deferred price, annual interest rate or terms of repayment of outstanding balances.

• Allow the seller to increase the deferred price discretion or impose price increases of additional concepts without the buyer's decision.

• impact on the buyer mistakes or not attributable to him.

• Impose on the first retail purchaser to pay expenses incurred in the preparation of the degree that, by law or by their nature, applicable to the seller.

• give a party discretion may terminate the contract.

The contract also must collect a number of basic aspects related to the buyer and the home as:

- Identification of the seller, builder and architect. You must include the name, age, address, TIN and VAT. Furthermore, it should be clear that both parties have legal capacity to act.

- Complete description of the house: plans, building specifications, site plan, building permit, general description of the building, the property registration data, statutes of the community phase of construction and expected date of handover.

- Terms of the purchase, total price of the sale with a detailed breakdown of taxes and payment.

- Indicate who will perform the contract expenses and taxes.

- Signing of all contracting parties.

In this sense, then, the previous analysis of the contract, ensuring the accuracy and adequacy of all its clauses and paragraphs, becomes the best ally in ensuring that the purchase of the home a safe investment.