Arras: Down payment, deposit on a property purchase: Down Payment/Deposit: This is the amount of money usually handed over in Spain to the property vendor as a guarantee that the purchaser will sign the deal within a given time frame. It is usually made up of a percentage of the total price of the property.
If the purchaser decides not to go through with buying the property within the fixed timeframe the deposit is lost. In the same way, if the seller does not sell within the timeframe agreed or decides to sell to someone else they must repay double the amount given as a deposit back to the potential purchaser.
This is a quick and simple way of reinforcing the commitment of buyers and sellers in the property market, and is supported by Spanish law.
Once contracts have been exchanged the deposit already paid is normally deducted from the total price of the property when the deeds are signed before the Spanish notary at the moment of the property purchase.
It is important to have a well-advised legal sales contract so make sure you get yours checked by a Spanish lawyer.
|Other useful links|
|Latest news on the property market in Spain Selection of news articles related to the real estate market here.|
|Mortgages in Spain, a brief introduction to the Spanish mortgage market, how it works and interest rates in Spain|
|Spanish banks, before applying for a mortgage, find out more about Spain's most popular banks and Spanish savings banks.|
|Property taxes in Spain, description of taxes involved in purchasing property and yearly property taxes in Spain.|
|Useful Spanish vocab for buying a house - you should learn at least the basic terms. Check out our pronunciation guide too.|
|Renting property in Spain - if you want to buy to rent, then read this section and our free notice board of property to rent in Spain.|
|Spanish lawyers - information on lawyers fees in Spain for property transactions|
|Houses for sale in Spain - take a look at the kind of houses available. Or check out our free Spain property for sale board.|