3.4.1. Contracts

The Option Contract: 

The option contract is a binding document whereby the house owner/seller grants the buyer the right to buy the property within a certain timeframe and for a certain price.

The option contract is usually 10% of the purchase price.

When the property sale goes through, in front of the Notary, the option contract fee is deducted from the total sales price. If the owner/seller does not fulfill the contract, does not want to sell the property or sells the property to another buyer, the option fee is returned, and doubled as a fine.

The Private Purchase Contract: 

The private purchase contract is a binding contract that states that the property owner/seller is selling the property to the buyer for a certain price within a certain date.

10% is paid as a deposit.

This amount is deducted from the final sales price when the property is sold, in front of the notary.

If the buyer decides to not proceed with the purchase of the property, the deposit is not refunded.

In the case of a signed purchase contract, the property owner/seller cannot renege on the contract and the buyer is legally permitted to enforce his/her rights to purchase the property.

The private purchase contract is the safest and legally most valuable contract.