Tips Before Signing Marbella Property Purchase Contracts
Before signing any sales or pre-sales documentation we have a list of things you might want to consider, including appointing a legal professional for advice. When you find a property that you are interested in purchasing, It is standard practice to make a formal offer & deposit and on its acceptance proceed to make a contract or at least a reservation. When an offer is accepted, the next step is to instruct ones solicitor and then forward at least 10% of the purchase price to his client account. They will then start the due diligence and make all the checks on the ownership, taxes, and fees and check there are no debts on the property, and the urban planning for the area.
He will then arrange to draw up a private option contract with the vendor’s lawyers and this will state all agreements regarding price, time for completion etc.
If you are purchasing a furnished property, a signed inventory must be obtained to be attached to the private contract. If possible arrange with your agent to have a photographic one as well.
Arrangements should be made so that prior to signing in the Notary someone checks on the purchaser’s behalf that the property has been left with the furniture as stated or agreed. As once the sale has been completed in the notary it will be very difficult to obtain any furniture or items that the vendor has “removed” from the property.
Once the private contract has been signed and the deposit usually 10% , there are heavy penalties for both parties if either decides not to proceed. By law the vendor is obliged to return double the amount paid unless otherwise stated, and the purchaser will lose the funds paid.
If you are required to sign an option contract take care, as if you exceed the date on the option you will lose your rights to purchase and the vendor will be free to market and sell the property again and keep your money, regardless of the reason you failed to proceed.
Always the golden rule should be that if you are not happy or unsure, do not hesitate to ask for more advice or a further explanation.
Do not sign any documents you are not happy with and you should have a version in English or a language you can understand. Your solicitor or representative should translate for you the entire document, not just pieces and if you request a translation you should receive the translation of your particular contract, not a general version.
Once the new title deeds have been signed in front of the Notary, you are the new owner and should have gained possession and keys. It only remains for your legal representative to pay your transfer taxes and register the property on your behalf with the local Land Registry.