How to avoid problems with the Deposit Contract

In any real estate transaction, it is very important to observe and carry out, not only the purchase contract, but also the so-called Contrato de Arras, which serves to reserve and secure the future possession of a property, prior to the formalisation of the public deed before a notary.

In view of the fact that some questions and problems often arise from and around the contract itself, it is vital to know how to draw it up and prepare it, in order to avoid serious problems that may arise between the buyer and the seller.


Important aspects of the Deposit Contract

The formalisation of the Deposit Contract should cover everything concerning the marketing process of the property and the real estate sale agreement, the signing of the deeds after the reading of the contract and, finally, the final handing over of the keys to the happy owner. The first thing to bear in mind when drawing up and signing a Deposit Agreement is that the model is not the same for all cases.

On the other hand, it is a dynamic document in which the mutual agreement between the parties must be expressed, adapted to the legal reality of the property.

What gives strength and meaning to this type of contract, which can be penitential, penal or confirmatory, is the penalty clause.


What to do to manage a Deposit Contract correctly?

It is very important that, in the Deposit Contract, every detail of the agreement for the purchase and sale of a home or property is reflected. This agreement between the parties is very simple, but it is not so simple to put in writing the conditions, obligations and rights inherent to it. By controlling each and every one of the legal aspects with good technical advice in the area, a series of problems can be avoided.

These are very important operations, very crucial, but they are not usually complicated if they are done in the right way. In this sense, it is necessary to make a detailed analysis and to inform about the financial, legal and vital situation of the clients and the parties before signing a Deposit Agreement.


Problems that arise in connection with the Deposit Contract

Some of the problems to be considered when signing a Deposit Contract, in addition to the financial and legal situation of the parties, are the Powers of Attorney, the judicial process of guardianship in the event of incapacity, inheritances prior to signing, whether or not the person resides in the country, etc.

With regard to the property and its legal situation, the urbanistic and/or mortgage charges, tax affectations, the certificate of habitability, the way of operating the rented flats, previous resolution agreements, prior notice, as well as the physical reality of the property must be shown.


The condition of the property to be purchased

In order to assess the physical condition of the property to be purchased, it is necessary to make an inventory or photographic list of the furnishings. Likewise, it is necessary to know the consumer protection law and the furniture, forgotten aspects and possible defects in the agreement between the parties, as well as the consequences that this entail.

About the building, it is essential to investigate the state of the building, the building work that has been carried out or is still to be carried out and, consequently, the problems that may arise from the building work itself.

All of this must be recorded in order to agree and anticipate any circumstances that may arise.

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