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ToggleWhen it is time to sign the contract, you may hear the terms ‘contrato de arras’ (deposit contract) and ‘compraventa‘ (sale and purchase contract). Some people think that they are equivalent to each other. This confusion creates many problems at the time of the sale. To avoid these situations in the future, in this article we will explain the difference between a deposit contract and a purchase contract.
Both contracts are related to the subject of purchase and sale. Although the deposit contract is not compulsory like the purchase contract, the deposit contract can facilitate the purchase process and make it much more comfortable.
The main function of this type of contract is to establish an agreement between the seller and the buyer. The potential buyer agrees to buy the property within a certain period and the seller agrees to sell his property to this client within the agreed period and under the specified conditions. Normally, the client gives an amount of money established in the contract, as a guarantee of the purchase.
Although the seller agrees to sell the house and the client agrees to buy it, both parties can withdraw from the contract. Normally, a monetary penalty set out in the contract is charged in advance.
The contract of sale is a consensual legal act, a binding document in the process of buying and selling. This contract establishes the transfer of ownership. Both parties (they can be physical or legal) have obligations. The buyer is obliged to pay a previously negotiated price, and the seller is obliged to deliver an object specified in the contract.
There are different types of “arras” and they will be part of terms and conditions of the purchase contract.
Also, there are another type of contracts, such as reservation agreement, option to buy purchase contract and more.
Regardless of whether you need an earnest money contract or a purchase contract, professionals can help you with the problems that arise during the purchase of real estate, do not hesitate to contact our specialists.