Signing Contract and completing at the same time

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This topic contains 10 replies, has 5 voices, and was last updated by Profile photo of Anonymous Anonymous 7 years, 10 months ago.

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  • #54689
    Profile photo of Anonymous
    Anonymous
    Participant

    Hi,

    Is it possible to sign the private sales contract and complete the sale at the same time?

    Are there are potential problems in doing this?

    Has anyone ever done this?

    Thanks
    JP1

  • #89700
    Profile photo of Inez
    Inez
    Participant

    You can do that its not a problem. In the old days one could and did go to completion without any contracts, however, nowadays in order to ensure there is no underdeclaration which would compromise the notary, the pp is insisted upon to attach to the sale file.

    The only forseeable problem is that if you havent got a contract in place prior, the buyer can easily pull out with no penalty

  • #89701
    Profile photo of Anonymous
    Anonymous
    Participant

    …and you need to make sure that you/your purchaser (because it’s the purchaser who has the right to choose the notary) has booked a notary appointment for the day in question. But otherwise, if both parties are ready to proceed, no reason why you can’t.

  • #89703
    Profile photo of Anonymous
    Anonymous
    Participant

    if your seller is spanish then it’s not unusual for them to try to change the deal at the last minute and maybe ask for more money etc

    Sometimes best to avoid any last minute shenanigans!!

    But also there are sometimes reasons a buyer might not want to commit up to the last minute so it works both ways.

    I’m sure there are some forum members who could tell a few stories on deals changing on the steps of the notary’s office.

  • #89705
    Profile photo of Inez
    Inez
    Participant

    Har! Dont go there JJB!!!!!

  • #89706
    Profile photo of Anonymous
    Anonymous
    Participant

    I take it that means you have a story to tell

  • #89713
    Profile photo of Anonymous
    Anonymous
    Participant

    Hi,

    Ok, so the general conclusion is that this is not a problem. Something I will look into then to avoid having to make 2 trips to Spain.

    One other question for the forum.

    I have asked this to my solictor that I have now decided to use (along with a lot more) but still appreciate the advise of this forum, while I await their reply.

    How is my mortgage settled from the funds the buyers provides.

    Is this done by electronic transfer, OR does he simply hand over a cheque made payable to my bank when in the notary’s office?

    The reason I want to know this, is that I want to avoid any charges the bank may try to pass onto me. I have to pay a cancellation fee for the mortgage, I am aware of that. However, from previous comments I was under the impression that I may be charged by my bank to receive the funds when in the form of a Bankers draft.

    I only got married in Spain a couple of years ago, and they charged me nearly 50 Euros for a cheque to pay for the reception. I had no idea that these sort of charges were made. And when buying this apartment I was told (but of course only after the purchase had been completed) that there was a fee for the bankers draft they provided to the builder of 1% of the value, so 1500 Euros, this in addition to the 1% commission charged for the mortgage!!! They reduced the fee to around 50 Euros.

    So do Spanish Banks make this charge also to receive funds!

  • #89714
    Profile photo of Anonymous
    Anonymous
    Participant

    @jp1 wrote:

    Hi,

    Ok, so the general conclusion is that this is not a problem. Something I will look into then to avoid having to make 2 trips to Spain.

    One other question for the forum.

    I have asked this to my solictor that I have now decided to use (along with a lot more) but still appreciate the advise of this forum, while I await their reply.

    How is my mortgage settled from the funds the buyers provides.

    Is this done by electronic transfer, OR does he simply hand over a cheque made payable to my bank when in the notary’s office?

    I dislike the idea of last minute completions for lots of reasons.

    Some have been listed above, but there are many others.

    If you wish to leave things till the last minute to avoid a second trip, I would suggest you get your lawyer to send the contracto de compra venta by post, you don’t need to make a trip to sign that.

    Alternatively – you could give your lawyer PoE for the particular task of signing at the Notary on your behalf saving you a trip.

    However, there are many clients who have lost thousands just to save a few Euros on a flight.

    I would reccommend you do the job properly with a proper purchase contract and a second trip to sign.

    Regarding your mortgage settlement question, your lawyer will split your purchasing funds into several bankers drafts. One of those will be to settle the existing mortgage with the bank, the balances will be paid to the vendor etc.

    I must stress how important it is to be at the signing and to have a purchase contract in place to save any dissapointment in the lead up to the completion.

    Please don’t become another victim!!!

  • #89715
    Profile photo of Anonymous
    Anonymous
    Participant

    JP1 is the vendor not the purchaser, just so everyone is clear!

  • #89717
    Profile photo of Anonymous
    Anonymous
    Participant

    @hillybilly wrote:

    JP1 is the vendor not the purchaser, just so everyone is clear!

    Point taken hillbilly 😳

    But last minute completions are bad even for vendors.

    He needs to ask himself why the buyer does not wish to commit to a contract.

    Are they waiting for an ofer to be accepted on another property etc.

    Could be that JP1 will be stood up at the Notary and that would be a wasted trip.

    Regarding the costs of banking a bankers draft – Some charge and some don’t, but they all make a charge for issuing one.

    Once again, thanks for putting me right hillbilly. 😉

  • #89723
    Profile photo of Anonymous
    Anonymous
    Participant

    Hi Peter,

    The buyer IS signing a private sales contract.

    I assumed that even if completing on the same day the private sales contract would still be signed. Thus division of expenses etcetera are agreed.

    My buyer is a young professional Spaniard, it is he who is concerned about buying a property off the internet from an overseas buyer he has never met. I am dictating the terms of the sale not he.

    Currently we were looking at maybe 1 or 2 weeks between signing the private sales contract and completing, so I just wanted to understand any risks if this was done simultaneously.

    Thanks for the replies, I think we could separate the process to signing at the start of the week and then completing at the end and still only make 1 trip.

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