3.4.2. Paying the Deposit

A down payment or deposit on a property purchase is a guarantee that the buyer will sign the deal within an agreed timeframe and in most cases is a percentage (around 10%) of the total price of the property. 

At the moment of purchase, once the contracts and title deeds are signed and exchanged infront of the notary, the amount paid as a deposit will be deducted from the full purchase price.

Make sure you have your lawyer check the sales contract.

If the buyer decides against buying the property within the agreed timeframe, then the deposit will be lost.

If the seller decides against selling the property within the agreed time frame or decides to sell the properrty to somebody else, then they will be abliged to pay double the amount of the deposit to the potential buyer.

The deposit is a standard and effective way of guaranteeing the buyer and seller will commit to a a property sale and is supported by Spanish Law.