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What is a deposit contract?

Posted by Emporda Immo on 22/03/2020
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Contrato de Arras

A deposit agreement or down payment contract is a clause that protects the contract of sale of a home in the event that such purchase is not made. At Emporda Immo we want to help you in the process of buying your new home, so in this article you will be able to discover everything related to down payment contracts, what types there are and how the aras affect the purchase process. Let us begin!

Purpose of a Down Payment Contract

First of all, we must know that a down payment contract is not really established as a contract but as a clause of a home sales contract.

In general, deposit agreements appear as a private document attached to the home purchase and sale contract as a reservation. Therefore, we can establish that the objective of a deposit agreement is to compensate the buyer of the home in the event that the purchase is not made for reasons related to the seller.

In the same way, the deposits protect the seller, giving him the right to receive financial compensation in the event that the sale is not made for reasons related to the buyer.

There are different types of down payment contracts, each with a specific mission, so let’s see what type of down payment contract may interest you the most.

 

Types of down payment contracts:

Confirmatory

They are a confirmation, a payment on account of the price, but if one of the parties rejects the signed contract, the other party may demand compliance. In the case that the contract does not specify what type of deposit is being signed, then the law will understand that they are confirmatory.

Article 1124 of the Civil Code, pre-supposes that the faculty will resolve the obligations when one of the parties does not fulfill what corresponds to them.

The wronged party may choose between demanding compliance or the resolution of the obligation. You can also ask for the resolution, even after having opted for compliance, when it is impossible.

The Court will decree the resolution that is claimed, in the absence of justified causes that authorize it to indicate the terms.

It is specified in the contract in the stipulations section, point 2 where the purchaser expresses interest in the acquisition.

Penitentials

The penitential deposits, consist of the payment of a quantity of money from one party to another, it being understood that any of the parties can desist from the contract, on one side losing the deposit that they had paid or alternatively on the other side returning twice the amount that has been received.

According to Article 1454 of the Civil Code it is assumed that “If they had mediated a deposit in the sales purchase contract, the contract may be rescinded by the buyer who will lose the deposit, or the seller has to return double the amount.”

It is specified in the contract in the stipulations section, point 2 where the purchaser expresses interest in the acquisition.

Penalties

They are what are configured as a penal clause.

According to article 1152 of the Civil Code, they assume that obligations with a penal clause will substitute the penalty for the compensation of damages and the payment of interest in case of a non-compliance, if nothing else has already been agreed.

It is specified in the contract in the stipulations section, point 2 where the purchaser expresses interest in the acquisition.

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