The Private Purchase Contract in Spain – What Happens Between Offer Acceptance and the Notary Appointment
Many buyers assume that the actual property purchase only takes place at the notary appointment.
In fact, the most important agreements are already set out in the private purchase contract beforehand. At this point, buyer and seller have agreed on the purchase price and the key property documents have been reviewed.
The private purchase contract forms the basis for the subsequent notarial deed and provides legal certainty for both parties.
What happens after the offer is accepted?
Once the buyer and seller have agreed on the purchase price and conditions, we at Villas Azahar prepare the private purchase contract. Contrary to what many buyers expect, this is not a standard template but an individually drafted contract, tailored to the specific property and the agreements reached between the parties.
What information does the contract contain?
A private purchase contract typically includes, among other things:
- full personal details of buyer and seller
- land registry data of the property
- cadastral reference
- precise description of the object of sale
- agreed purchase price
- amount of the deposit (arras)
- bank details for the deposit transfer
- date or deadline for the notarial deed
- method of payment for the remaining balance
- handover of possession and keys
- allocation of taxes and ancillary costs
- provisions in the event of non-performance
- jurisdiction and competent courts
In addition, any special agreements between buyer and seller are recorded, provided they form part of the overall arrangement.
The deposit – much more than a simple reservation
In Spain, a deposit of around 10% of the purchase price is typically agreed. Many buyers regard this as a simple reservation fee. In fact, it carries considerably greater legal significance.
By signing the purchase contract, both parties commit to completing the agreed sale.
If the buyer withdraws from the contract without a legally recognized reason, they will normally forfeit the deposit paid.
If, on the other hand, the seller fails to meet their obligations, they must return the deposit received and additionally pay the same amount to the buyer as agreed compensation for damages.
What documents do we attach to the contract?
To ensure that both buyer and seller can review all essential information, we normally attach several annexes to the private purchase contract. These include in particular:
- current Nota Simple (land registry extract)
- current cadastral documents
- where applicable, a list of items expressly excluded from the sale
Particularly for furnished properties, this provides clarity and prevents later disputes about which items are included in the purchase price.
Who pays what costs?
The allocation of costs is also set out in the private purchase contract. These include notary fees, registration costs, taxes, municipal capital gains tax (plusvalía), property tax (IBI), community fees and any other expenses associated with the sale. This means both buyer and seller know before the notary appointment which financial obligations they are taking on.
Do you need to attend the notary appointment in person?
Not necessarily. Many of our international clients live permanently in Germany, France, Belgium, the Netherlands or other European countries. For this reason, many buyers and sellers grant us a notarized power of attorney so that Villas Azahar Inmobiliaria can represent them at the signing. This means the notarial deed can be completed even if one party is unable to be present in Spain on the day.
Contracts in the language of buyer and seller
Misunderstandings often arise when the content of a contract is not fully understood. For this reason, we prepare our private purchase contracts in the respective languages of buyer and seller. This allows both parties to review all agreements before signing and to clarify any open questions in good time.
Summary
The private purchase contract is one of the most important steps in buying a property in Spain. It covers not only the purchase price and deposit, but also the rights and obligations of both parties, the allocation of costs, the handover of the property and numerous further details of the transaction. Thorough preparation ensures transparency and allows both buyer and seller to approach the notary appointment with confidence.