A deposit contract can ruin your purchase

Reading ContractsIn many cases when clients come to us for conveyancing work, they have already signed the deposit contract. They have generally done it under the pressure of the agent or the seller.

Bad start!

Play your part in the negotiation (with the assistance of a good lawyer) in order to have strong protection of your rights from that initial moment.

Elements to be checked out:

  1. – Full identification of seller and buyer
  1. – Official and updated identification of the property (by Land Registry Nota Simple)
  1. – Clear concept of the contract which is being signed, agreed price and method of payment. It is important to express here the nature of the advanced payment (refundable reservation deposit, part of the price)
  1. – Agreement on payment of expenses and taxes
  1. – Time within the public deed needs to be signed, etc

The more detail we acquire on your purchase before signing the contract will help us to improve the process of your property purchase and can help us to set realistic expectations.

The return of amounts handed as a deposit will depend on the fulfillment of the conditions agreed in the deposit contract. It is very advisable to have a compensation clause that will avoid further discussions on this important matter.

On the other hand, if it is the seller who is not complying with the agreed deadline, or decides not to sell without a justified reason or to sell the house to a third party, he will have to compensate you according to what is stated in the deposit contract.

In the case that the sale is completed within the agreed deadline, the deposit will be considered an advanced amount on account.

It is important to pay a lot of attention to this contract as it is as important as the sales contract itself and you can be committing yourself to conditions that will determine the purchase at a very high level.

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