Reservation: This is a document prior to the deposit, which determines the price agreed upon, the period in which the deposit must be paid, and which confirms that the property will be free of encumbrances on the date of the deed. This reservation prevents it from being marketed until payment of the deposit, which normally takes place within a maximum period of 15 days, but does not imply a 100% commitment by the owner.
Deposit: This is a commitment to sell within a certain period. If the owner does not want to sell in the end, Article 1454 of the Civil Code is applied. This specifies that the owner has to repay to the purchaser double the amount paid. If, on the other hand, the client does not buy the property in the end, they lose the deposit. This quantity is normally 10% of the total purchase price. This deposit can be made after the reservation, or immediately if the client has 10% of the total price available.
Purchase option: This is a type of agreement between the parties, with or without a deposit, which determines a rental price with an agreement to sign a deed in a longer period. During this time, the amount of rent paid is deducted from the purchase price. In short, the owner finances part of the purchase until the client is ready to sign the deed in accordance with the price established. If the client cannot sign the deed on the date stipulated or stops paying the rent, they lose everything paid until then. This alternative includes numerous possibilities, the owner and the client being able to come to an agreement in accordance with the interests of all the parties.
Public deed: Once the owner and the client are ready to sign the deed, an official agreement is drawn up before the notary detailing who is selling, who is buying, what is bought and what taxes arise from this sale for the two parties. At this time the owner presents all the documentation which indicates that the property is free of encumbrances, up-to-date with the payment of taxes and communal expenses, the certificate of habitability and the energy performance certificate.
If one of the parties, the buyer or the seller, is NON-resident, they must provide a supporting document with a photo and signature for the purposes of their identification, in addition to the NIE (Foreigner Identification Number). They may have a certificate of residence, which already contains the NIE. The NIE is compulsory in all cases.
If the notary does not receive the original documents requested from the owner or they are incorrect, they will not sign the deed. They will also not sign if the owner fails to appear.