MERCEDES NÚÑEZ CAMACHO ATTORNEY OF THE COURTS
ALEJANDRO NÚÑEZ (AGENTE INMOBILIARIO Y ADE | REAL ESTATE & BUSINESS AND MANAGEMENT)
Phone: +34 679 16 12 83
Phone: +34 661 63 07 33
Contracts
1
Reservation contract
The reservation contract is a document by which the buyer and seller agree to formalize the sale, that is, the sale contract is firm and in the event of its termination, the termination of the contract will be necessary, which may be by mutual agreement or in case of discrepancy, they would be forced to resolve it judicially.
2
Earnest money contract
There are 3 types of deposit contract:
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Confirmatory deposit: the parties may not waive their obligations, doing so exposes them to a legal claim.
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Penitential deposit: both buyer and seller have the right not to finalize the sale of the property, assuming the following consequences:
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Buyer: will lose the money delivered as a deposit.
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Seller: must return up to double the money received at the signing of the deposit contract.
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Penal deposit: in the event that one of the parties desists in the fulfillment of its obligations, in addition to the consequences that the penitential deposit contract entails, it could request compliance with the contract.
Conclusion
Both contracts are valid to formalize the process of buying and selling real estate. The main difference lies in the consequences of a termination of contracts.
In the case of the deposit contract, termination is permitted with the respective consequences referred to above. However, in the reservation contract compliance with the contract is unavoidable, unless there is a specific clause on its termination.