The real estate deposit

The real estate deposit

When are we going to buy or sell a home, the two parties do not have to be equally convinced. For this reason, it is common for users to commit themselves through real estate deposits.

Next, we will explain in more detail what are real estate deposits, what types are there and more information helpful on this topic.

real estate deposit

1. The real estate deposit

It's a private contract in which the seller and buyer reach an agreement to carry out the sale of a property in the future. Thus creating a reservation by the buyer that contributes money as a signal on account of the final price of the good. For his part he seller, agrees to give the property under the agreed conditions.

exist different types of arras depending on the goal you want to reach.

  • penitential earnest: allows parties to back out. If it is the seller who does not comply with the agreement, he must return to the buyer double the amount paid and if it is the buyer, he will lose the amount paid.
  • confirmatory deposit: acts as a mere signal of the operation. No part can be disassociated. If there is non-compliance, the Civil Code must be followed.
  • penal deposit: if the buyer defaults, he will lose the amount delivered, if it is the seller, he must return double what was delivered. It cannot be unlinked.

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2. What real estate deposit is best for us?

Whether we are buyers or sellers, the best option is the penitential deposit. As long as we are sure that we want that property or if we really want to sell our house.

The deposits that best guarantee the operation are the penitentiaries, since the buyer's money really serves as security for both. If the buyer backs out, the seller will get all the money, while if the seller defaults, the buyer will get double.

3. What do we have to take into account?sign

If we are going to buy the house, we must take some things into account before giving money as a signal. As:

  • Visit the house and check its condition.
  • Check ownership and charges of the house.
  • Analyze the deposit contract.

In addition, we must add the following information in the contract:

  • Description of the property.
  • Identification of the parties.
  • Conditions of the sale.
  • Amount of the earnest money.
  • Term to formalize the sale.
  • Conditions for the separation of the parties.

real estate deposit

If you want to know more…

Today we have explained a little more about the real estate deposit. In order to help you and give you a little more information on this topic. Contact us and we will help you carry out any procedure related to it.

On the other hand, if you want to continue discovering elements of the real estate world, do not hesitate to read the rest of the publications in our real estate blog.