Moving forward with the purchase of a house or flat is always an important step that requires maximum commitment from both the Buyer and the Seller.
Safeguarding both parties to the deal is therefore an important and necessary procedure, ensuring that the process takes place correctly and within the established timeframe.
And the way to safeguard both parties is to sign a Promissory Contract of Purchase and Sale (or “CPCV”), a document which, despite its unofficial nature, signs the intentions of bothparties to buy and sell a property, guaranteeing rights to both.
But what should a CPCV contain? And should an estate agent be involved?
H URB, together with our partner portal SUPERCASA, will guide you through this process.
A CPCV is a contract that provides security
Although it is not an official or compulsory document, the CPCV has legal force, binding all the parties to the deal and obliging them to comply with certain conditions, from the form and amount of payment for the property to the deadline for the public deed, emphasising the rights, duties and sanctions to be fulfilled by each party.
And what should a CPCV contain?
All the details of the parties involved (Buyer and Seller) must be included. This means including personal details such as the spouse of each party (if any), address, NIF and Citizen Card number.
It must be clearly identified which property is being sold, be it a flat, a house, a plot of land, a shop or a warehouse. This item should also include the address and details of the land registry and town hall.
As it is a contract between the two parties, the CPCV must indicate what business will be carried out, with the parties committing themselves to it, be it the purchase or sale of the property. This is where the value of the property and how it will be paid for is explained, as well as whether the Buyer is awaiting approval for any type of bank credit in order to go ahead with the deal.
Normally, a down payment is also given for the property. This usually corresponds to a percentage of between 10 and 20 per cent of the total purchase price, and if there are plans to increase the down payment during the term of the CPCV, this should also be made explicit.
The CPCV must also contain the deadline for the Public Deed.
As with any contract, there are not only rights: there are also specific obligations for each party in the event of a breach of contract. These rights and duties are defined between the Buyer and the Seller, and good faith and common sense must prevail.
The CPCV must contain information on any charges that may currently be hanging over the property, such as liens or mortgages, what the amounts are and who is involved in these charges.
If the Buyer receives the keys to the property in advance, i.e. before the Public Deed, this information must also be included in the CPCV and under what conditions.
The CPCV must be accompanied by the building and utilisation licence or the specifications, in the case of properties still on the drawing board.
The document must be signed by all parties for it to be valid. Although this is not compulsory and can be waived if agreed, either party can demand that signatures be notarised.
Upon receipt of any amount, a receipt must also be demanded by the Buyer, proving that the exchange has taken place.
Should I really get advice from a property consultant?
Although you might think of us as an “interested party”, the truth is that we strongly advise that a property deal be brokered by a property consultant/agent. This will take away any worries about drawing up contracts and dealing with the law, safeguarding you from any doubts or questions that may arise.
A property consultant/agent, like H URB‘s consultants , has experience in this type of business/transaction and is competent in analysing the documentation and advising you throughout the process. In this way, the process will be safe, smooth, efficient and advantageous, thanks to all their accumulated knowledge of the market and their negotiating skills.
Final considerations
The CPCV is an important document which, although not compulsory, is a way of ensuring the smooth running of a property purchase deal.
This is an important step in the life/project of any person/company, so it should be approached with thought and common sense. That’s why you should make a good choice about who will accompany you in this process.
H URB is a real estate agency with a team that has over 20 years’ experience in the market. Talk to us: one of our Consultants will contact you and, together, we’ll open up a window of opportunity!
