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Hello Everyone
I have read elsewhere (perhaps in Marks editorial) that when purchasing a property in Spain (other than offplan) you should try and keep the deposit as low as possible. But what are the practicalities of this ? Is the deposit set out in law, as a percentage or absolute figure ? Or are you free to haggle with the seller untill you mutually agree a sum ? I would welcome any adivice surronding this topic as there appears to be a wealth of experience that inhabits this forum.
Thanks Ditter.
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I suggest you always pay your deposit directly to the vendor as part of a detailed and professionally prepared exchange contract – known as ‘arras’ in Spanish. Don’t just hand over the money to an agent in exchange for a receipt.
Most sellers will happily accept a deposit of between 2 and 5 percent. Although Spanish buyers do not generally think in percentage terms and will be thinking of a deposit of either 3.000 or 6.000 euros. Everything is negotiable.
If you pull out then you lose your deposit, and if the seller pulls out, he must return the deposit paid and then should pay you the same sum again. However, this additional compensation may be difficult to enforce in reality.
If the period before completion is longer than six weeks then the deposit may have to be higher.
Be aware that the deposit offers you some protection as well as the seller. If you negotiate too low a deposit then another buyer may simply outbid you.
Most deals that go wrong actually go wrong at this stage …. so deal directly with the vendor, hire an independent lawyer, visit the town hall, prepare a detailed exchange contract and pay by cheque.
Good luck!
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I suggest you always pay your deposit directly to the vendor as part of a detailed and professionally prepared exchange contract – known as ‘arras’ in Spanish. Don’t just hand over the money to an agent in exchange for a receipt.
Most sellers will happily accept a deposit of between 2 and 5 percent. Although Spanish buyers do not generally think in percentage terms and will be thinking of a deposit of either 3.000 or 6.000 euros. Everything is negotiable.
If you pull out then you lose your deposit, and if the seller pulls out, he must return the deposit paid and then should pay you the same sum again. However, this additional compensation may be difficult to enforce in reality.
If the period before completion is longer than six weeks then the deposit may have to be higher.
Be aware that the deposit offers you some protection as well as the seller. If you negotiate too low a deposit then another buyer may simply outbid you.
Most deals that go wrong actually go wrong at this stage …. so deal directly with the vendor, hire an independent lawyer, visit the town hall, prepare a detailed exchange contract and pay by cheque.
Good luck!
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Thanks very much Rawlins for that comprehensive reply, i have just a couple of points. If you pay a higher deposit does that indicate to the buyer your keener interest and would you then be entitled to ask the seller to take the property off the market at this stage ? And finally does the deposit get exchanged when the arras is signed or will there be pressure to hand it over before ?
Ditter
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Thanks very much Rawlins for that comprehensive reply, i have just a couple of points. If you pay a higher deposit does that indicate to the buyer your keener interest and would you then be entitled to ask the seller to take the property off the market at this stage ? And finally does the deposit get exchanged when the arras is signed or will there be pressure to hand it over before ?
Ditter
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Signing an arras contract is the same as exchanging contracts in the UK – and so the property must be taken off the market.
All the preliminary searches and title checks can be done by a good lawyer in just three or four days – less if pushed.
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Signing an arras contract is the same as exchanging contracts in the UK – and so the property must be taken off the market.
All the preliminary searches and title checks can be done by a good lawyer in just three or four days – less if pushed.
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