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San Javier Property for Sale

The importance of earnest money contracts on the purchase of housing: types, differences and consequences

The road to a sale is usually initiated through a first installment of money, commonly called signal or reserve, which is intended to ensure that such housing will be for the buyer and not for no other person.

This signal or reserve, which is formalized through a document whose legal name is the earnest money, will be, in principle, the first payment of the price of one of the most significant financial outlays that makes a person or a family unit.

There are different types differentiated by doctrine and defined by the Supreme Court arras. The importance of knowing lies in the different consequences that occur depending on whether you sign one or the other, consequences will be determined mainly by the content that is given in the wording.

Confirmatory, criminal and penitential: And so, three types of arras allowed.

1. Confirmatory Arras.

They are those that are proof of perfection or conclusion of the sales contract and are a sign of their celebration. the price is agreed, delivery is on account of this and do not allow to withdraw in case of default. They are a real guarantee for both the buyer who wants it, and the seller, that future sales will be done.

In the event of default, the aggrieved buyer may choose to enforce or resolution, with compensation for damages in the latter case, provided that such damages are tested.

2. Criminal Arras.

Its purpose is securing the contract by the threat posed to the defaulter economic loss: represent compensation for damages, but do not prevent the enforcement of the obligation. While the latter case and to compensation and compliance requirement, the court may moderate the amount of the first, if it is a partial default. Therefore, if one violates the terms and obligations of the contract it is the buyer will lose the amount paid, whereas if it is the seller who fails, it must return so bent the amount received.

3. Penitential Arras.

Also called arras of withdrawal, constitute a lawful for the parties to unilaterally disengage from the contract by means loss or bent restitution. They are those usually intended use and that, in principle, are in every mind of seller and buyer, although they are exceptional. That is, if not expressed clearly its consequences, or the provision of the Civil Code which are regulated (Article 1454) mentioned, we face other arras.

Attentive therefore to sign a pledge, since before the recognized diversity, both doctrine and jurisprudence have been understood that, in the absence of express indication in the contracts, delivering arras has a purely confirmatory function or payment a part of the final price.

Europahus, if you're looking for in San Javier property for sale we are your estate agents.

Thanks to our close collaboration with many local real estate agents and property developers, EUROPAHUS catalog includes all types of properties, both new and second-hand, and throughout the provinces of Murcia and Alicante.

We know that finding the home you have in mind takes time. Sometimes one trip is not enough. In Europahus we try to make things as easy as possible for you.

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