.png)
The purchase contract for a resale property contains details of the seller and buyer, a description of the property, the purchase price and method of payment. It will also confirm that the Escritura de Compraventa (“Title Deed”) is in the name of the seller and that this will be passed on completion of the sale. It will also guarantee that the property itself will be transferred free from all encumbrances and rights of third parties, and will state who is responsible for taxes and the costs involved in the transfer of the property. There will also be stipulations regarding penalties for non-fulfilment of the contract.
In the case of a property under construction, the contract will contain similar details and normally further information regarding the ownership of the land, building permissions, completion date and the setting up of a community.
Contracts are often written in English, but more commonly in Spanish with perhaps an English translation. Your lawyer (if you have instructed one) or the estate agent will go through the contract with you to ensure that you fully understand it and are happy with the contents. If you have any doubts over the contract, DO NOT SIGN IT!! 
As the contract is a binding agreement, if you are instructing a lawyer you should not sign the contract until he has had the opportunity to advise you on the provisions, as it is difficult to unravel at a later stage things which you have agreed to in the contract. There is nothing to prevent you paying a holding deposit to secure the property and let your lawyer vet the contract before you sign. No reasonable seller would refuse to refund a holding deposit if your lawyer should find any legal reason why you should not proceed.
Often the estate agent through whom you buy the property will draw up the contract, although this may be done by the seller’s lawyer where there is no agent involved or where the transaction is unduly complicated.
