3.3.3. Formalise the offer

Once your offer has been agreed, your lawyer will draw up a preliminary contract to reserve the property while you finalise the paperwork:

Option Contract (contrato de opción de compraventa) stipulating the agreed buying price, the deposit (which is usually around 10% or purchase price), what exactly is included in the price (furniture, appliances, fittings, outbuildings...) and dates for paying the deposit and final full payment. This contract is not binding and a deposit must be paid and will be lost if you withdraw.

You can also opt for a standard private purchase contract (contrato privado de compraventa), which is binding on both the buyer and the seller and requires a deposit payment.

Or alternatively, a reservation contract (documento de reserva) whereby you pay a small goodwill deposit to secure the property for a short period of time and the real estate agent takes the property off the market. If you withdraw from the sale the deposit is forfeited.

These contracts will formalise the offer and reserve the property for you during the time frame you have agreed. This gives you time to organize your mortgage and loans, money transfers and all legal and administrative forms and documentation.

It is essential you work closely with your lawyer and check the wording of your contract and ensure you have opted for the contract which suits you best. If you were to decide to withdraw after paying the deposit, you will lose the deposit and if the seller withdraws then he/she may have to pay twice the amount. This is all dependent on the exact wording of the Preliminary Option contract.