It is also known as an advance . It is a private contract through which the participating persons, both buyer and seller, agree to reserve the sale of a property or property, which may be a home, a vehicle, among others.
At the time of agreeing the reservation, the delivery of a certain amount of money is also agreed as a condition of the contract. In this sense, it should be noted that it is also known as a pre-contract through which the parties agree to the signing of the contract and session of the asset later.
According to the intent of the contract and the parties, there are three types , namely:
- Confirmatory : in this type of contract, in the event that one of the parties cannot comply with it, the other may perfectly demand compliance, or completion and subsequent compensation for damages that may be generated.
- Penitential : in case the sale is not made, the buyer will consider the amount of money delivered at the beginning lost or must double the delivery if the seller does not want to make the contract.
- Penalties : it is the amount of money that the buyer will lose. However, despite this, the buyer cannot disengage from the unfulfilled acquired obligation.
Components of a deposit contract
- Participants’ personal data
- Detailed and accurate description of the property
- Final price of the value of the good that is being sold
- Amount of money to pay for the signal, specifying as detailed as possible. In this sense, the result that remains from the total amount of the good must be detailed.
- Time limit for the formalization of the sale
- Possible property charges or
- Distribution of the expenses generated by the sale purchase
Examples of deposit contract
- Deposit or signal contract
On the one hand : Mr / ña _______________________, of legal age, single, provided with ID number __________________, neighbor of ______________ c / ________
On the other hand : Mr / ña _______________________, of legal age, single, provided DNI number ____________, neighbor of_____________ c / ____________
In its own name and right and the necessary legal capacity for the granting of this document is recognized, which takes effect under the following:
I. – That Mr. / ña _______________________ is the owner of the home located in ___________, c / ________________, nº ________ piso__, with registration in the Property Registry of __________ number ________ in volume ____, book _____, folio _____, farm number _____, Inscription ____________
Charges .- The selling party asserts that the farm is free of all charges, encumbrances and limitations.
Rental situation. – Free, as they assert, from tenants, occupants and squatters.
II .- Exhibited above, the lords comparecientes
First .- Mr / ña _____________________ is obliged to sell Mr / ña ______________, who is obliged to buy, the farm described in antecedent I, in a state free of charges and leases, as a true body, with whatever is principal, accessory, member and dependent and up to date with contributions, taxes and expenses of the community, for the price of ……………………………. of pesetas.
Second .- Mr. / ña _____________________. delivery to Mr. / ña _____________________ on account and as a deposit or signal of the future purchase-sale, the amount of ____________ pesetas, which he will lose if he does not comply with what is agreed in this document, or he will have the right to receive double sellers.
Third.- Mr / ña ___________________________ undertakes to deliver the rest of the price within a maximum period of ____ calendar days. The granting of the public deed of sale will occur simultaneously with the payment of the stated remainder of the price.
Bedroom. – All the expenses and taxes and rights of this contract and of the public deed of sale that in its day is granted, until its registration in the Property Registry will be paid by the buyer, except the Tax on the Increase of the Value of Urban Land (capital gain), which will be paid by the selling party.
The choice of the notary authorizing the aforementioned deed will correspond to the purchasing party. The expenses of the property prior to the granting of the public deed will be paid by the seller.
In ______________, on ___________of____________ of_________
- Standard deposit contract
On the one hand,… .., with ID… .. with address for notification purposes located at… .., CP…, ……, ……, hereinafter THE SELLER.
And on the other,… .., with ID…. with address for the purposes of notifications located at…., CP…,…,…., hereinafter THE BUYER.
Both parties act on their own behalf and have sufficient legal capacity to carry out this contract, being responsible for the veracity of their statements. By mutual agreement,
1. That the seller is the owner of the home located at …… .., with an approximate area of…. m²…
2. That the buyer is interested in buying the referenced home together with all its personal property.
3. That by virtue of the foregoing considerations the parties of their free and spontaneous will have agreed to grant this contract for the sale of real estate, subject to the provisions of this agreement. Being interested, both parties carry out this ARRAS CONTRACT, based on the following,
1. REGULATION. This contract will be governed by what is established between the parties within the legal framework of Law 29/1994 of November 24 on Urban Leases together with the modifications introduced by Law 4/2013 of June 4 of measures of flexibility and promotion of the housing rental market, additionally applying the Civil Code.
2. PRICE. The parties agree that the price that the buyer will pay the seller for the property will be …… ..euros, taxes included. The parties agree that the payment of the price will be made in the terms and conditions. The buying party delivers to the selling party at the time of signing this contract, as a deposit or signal, the amount of …… euros, without prejudice to the provisions of article 1,170 of the Civil Code. in the account of the owner in the entity… .. cta. nº …… The rest of the price will be paid by the buying party to the selling party, without accruing interest, on the day of execution of the public deed of sale.
3. GRANTING OF PUBLIC DEED AND DELIVERY OF THE PROPERTY. The contracting parties are obliged to make this private contract of sale to a public deed by appearing before the Notary before …… The granting of the public deed of sale will imply the delivery of the property sold, except in unforeseeable circumstances or force majeure. Said delivery will be made in perfect habitability conditions, with the administrative authorizations necessary for its habitability, and with all its elements in perfect working order.
4. UNILATERAL TERMINATION OF THE CONTRACT BY MEANS OF ARRAS. In accordance with the provisions of article 1,454 of the Civil Code, this contract of sale may be terminated at the request of the buying party or the selling party. In the case of termination of the contract at the request of the buying party, the latter will agree to lose the amount delivered as a deposit or signal, and in the case of termination at the request of the selling party, it must return to the buyer an equivalent amount twice the amount delivered as a deposit or signal.
5. RESOLUTION OF POSSIBLE CONFLICTS. This contract will be governed and interpreted in accordance with Spanish legislation. For the resolution of possible conflicts that may arise around the interpretation of this contract, the parties submit to the Courts and Tribunals of ……
And in full agreement they sign it in duplicate in the place and on the date indicated at the beginning.
LESSOR PART LESSOR PART
- Deposit contract (model)
On the one hand, M / M ………………………………… .. of legal age, (profession), and residing at the City Council ………………… (address), ID No.… …………… ..
And on the other hand, M / D ………………………………… .. of legal age, (profession), and residing at the Town Hall ………………… (address), ID No.… …………… ..
In its own name and right and the necessary legal capacity is recognized for the granting of this deposit or signal contract , which takes effect under the following:
I.- That M / M (name of the owner) is the owner of the house located at (address and description of the house), the property being free of all charges, encumbrances and limitations.
II.- Exposed the foregoing, the appearing parties,
FIRST: D / Mª (name of the owner) is obliged to sell to D / Mª (name of the buyer. Who is obliged to buy, the property described in antecedent I, for the price of … € (numbers and letters).
SECOND: D / Dª (buyer) delivers to D / Dª (seller), on account and as a deposit or signal of the future sale, the amount of…. € (numbers and letters), which he will lose if he does not comply with what is agreed upon in the present document, or you will have the right to receive doubled if the breach occurs by the selling party.
THIRD: M / M (buyer) undertakes to deliver the rest of the price within a maximum period of (indicate days, months ..).
FOURTH: The expenses of the property prior to the granting of the public deed will be paid by the seller.
FIFTH: All expenses and taxes, as well as the notarial expenses of the public deed of sale that is granted, until its registration in the Property Registry, will be paid by the buyer.
SIXTH: The parties submit by legal imperative to the Courts and Tribunals that correspond to the place of the property acquired in this sale.
And in proof of conformity, they sign and sign in duplicate and with a single effect in (indicate the place and date)
The selling party The buying party
- confirmatory deposit
- penitentiary deposit