Explaining Spanish Property Sales Agreements

January 14, 2008

A sales agreement is a private document in which one of the contracting parties, in this case the seller, undertakes to hand over a residential property while the purchaser undertakes to pay a specified price for said property.

The agreement is completely valid and is legally binding on both parties from the moment of signing, even though the property has not been handed over. The agreement will eventually be converted into a public deed before a notary.

The wording of the sales agreement should adhere to the principle of good faith and the rights and obligations of both parties should be fairly and reasonably shared. It is extremely important to read all the articles of the agreement carefully before signing to verify that that you agree with all the conditions.

The National Consumers Institute and the Autonomous Communities, working in collaboration, have drawn up a standard sales agreement for a newly-built property. In line with this model, sales agreements should contain the following:

1. Parties involved: name and National Identity Document number of the purchaser of the property; name and National Identity Document number or tax number of the seller.

2. Information about the plot or property: name, square metres, location, Land Register information, information contained in the annexes.

3. Architect details: name, address, contact details, statement affirming that all the permits and administrative licenses required by law have been obtained.

4. Builder details.

5. Information on the mortgage loan.

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