Property for sale in Nerja, Torrox, Salobrena, Motril and the Lakes

Private contracts

The names of the parties.
The vendor, the purchaser and/or their representatives. You do not need a notarised power of attorney to sign a private contract for somebody else but it is as well to check that any representative is duly authorized.

Description of the property.
The main thing is the Land Registry details - check to see you are buying the right property. Also check to see if the description includes any extensions since the property was originally built. It is not uncommon to see a two storey property described as only having a single storey. This may or may not be a problem - but you should take professional advice.

The price and conditions of payment.
The most common agreement is for a 10% deposit on signing the contract with the balance on completion. The full price should be shown in the contract which as its name suggests is private, i.e. it will not be shown to the notary or the tax office. There should be an agreed completion date on which the escritura will be executed before the Notary, the final payment will be made and possession of the property will be given to the purchaser.

Conditions which apply if the sale does not proceed.
A large part of the contract may be given up to what happens if the deal does not go ahead. These are important clauses, even though you hope they will never apply. Generally speaking if the purchaser backs out he will lose his deposit unless the sale does not proceed because of a legal defect to the title. If the vendor backs out he should have to return the deposit to the purchaser. Look out for any reference to "arras" or to Article 1454 of the Código Civil which means if the vendor backs out he has to pay back the purchaser double the amount of the deposit.