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Aspects you should know about the deposit agreement

"El contrato de arras" or deposit agreement is one of the important steps in the process of buying and selling a home. However, many people who are going to buy housing are unaware of it.

When we buy a home, one of the first steps is to deliver a certain amount of money to the seller as a reservation. This will prevent the house in which we are interested is bought by another person.

This payment and sign is legally known as "arras" and the contract where the delivery is regulated, is called the Arras Agreement. This is a private document signed by the buyer and seller, in which both parties agree to reserve the house in exchange for the delivery of a signal amount. In this way, it is guaranteed that the house will not be sold to another buyer while we carry out other procedures.

What is the purpose of the deposit agreement?

Its main objective is to regulate the payment as a sign of a house and the terms in which the money is delivered and its refund in case of default by one of the two parties. That is why, depending on its wording, we can speak of three types of punishment: penitential, confirmatory and criminal. Let's see what each one consists of and what are the aspects that differentiate them:

Arras confirmatory.

So-called "confirmatory" are the ones that are normally used as evidence of the contract. They suppose the delivery of a quantity as a signal which, afterwards, will be deducted from the final price.

Criminal arras.

The purpose of criminal prosecution is to ensure that the contract is fulfilled under the threat of an economic loss. That is, if the buyer breaches the terms of the contract will lose the amount delivered as a signal. If the one who breaks the contract is the seller, you must return double the money delivered. With this formula, this type of payment establish damages for damages and prejudices. They establish the guarantee of fulfillment of the contract.

Penitential arras.

Also known as "withdrawal", consist in the delivery of a sum of money by one of the contracting parties to the other, it being understood that either party can withdraw from the contract by losing the money that would have delivered them or returning twice as much The same that has received them. They allow contractual termination.

Is the deposit agreement mandatoy in a property sale?

The contract of arras is not obligatory, since it is a private document, but it is highly recommended. In fact, it is considered even more important than the public signature before a notary. The reason? It is the basis that will serve to leave all the cables well tied for the subsequent contract and to safeguard the rights of the two parties.

Barceló Real Estate offers you a wide variety of property for sale in Orihuela Costa.

If you are looking for properties, both new and second hand, in areas of Orihuela Costa like Campoamor, Cabo Roig, Mil Palmeras or Pilar de la Horadada, check out our property catalog. Barceló Real Estate is part of the Barceló Group, a firm with more than 20 years of experience in the real estate sector.

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