Our real estate agency in Mallorca will be explaining the different types of recommended contracts for your purchase

Investing in a house for sale in Mallorca is a big step for anyone to take in their life. Deciding to make a new home in paradise can be nerve racking but at the same time exciting. However as in any complex process, there are always some bureaucratic procedures to undertake. At Pollentia Properties, real estate agency in Pollensa, we are fully away of this fact, which is why we want to give you the basic guidelines for choosing the type of contract which best suits your needs. Would you like to know more? We will be giving you all the details in this blog article.

Buy a house for sale in Mallorca: Purchase commitment contract

The first of the most highly recommended contracts prior to the signing of the official purchase document is the commitment to purchase/sales contract. This agreement establishes a future sale with the commitment of the buyer and of the seller. Unlike a regular purchase/sales contract, this contract exempts both parties from making a payment at that particular moment with the obligation to do so at a future time. In this way, if one of the two does not comply, a claim could be made for compensation for the resulting damages. This contract specifies the date for the purchase/sale by mutual agreement together with the established identification of the property, the price and the date of signature.

Buying a house for sale in Mallorca: Deposit contract

The second of the possible contracts is the deposit contract. The deposit is a financial guarantee offered by the buyer to the vendor with the aim  of securing the sales contract. In this same contract there are three categories of deposits:

• The validation or probative deposits are those that form part of the agreed price and are the guarantee that the contract cannot be terminated unilaterally. It is the confirmation of the agreement. Any of the two parties who do not comply with the conditions may be required to comply with their part of the agreement or on the contrary be legally compensated for damages with the amount established by a court of law.
• Penalty deposits are those that are given as a guarantee of fulfillment of the contract. The difference from confirmatory or probatory deposits is that both parties agree on the amount of compensation in case of a breach of the agreement.
• Penitential deposits are those which allow the cancellation of the contract under specific conditions: the buyer can be released relinquishing their  initial deposit and the seller can do so by reimbursing double the amount received as confirmation. In this way, this type of contract contemplates the unilateral cancellation of the contract by establishing the corresponding sanction.

Buy a house for sale in Mallorca: Purchase option contract

The third and final contract is a contract with the purchase option and contemplates one of the parties involved, known as the potential buyer as having the right, but not the obligation, to buy a property from another party, known as the grantor, who has the obligation to sell it. The sale will be made depending on the response of the potential buyer within the established period. The owner of the property is not permitted to sell the property to a third party during this period.

Contact our real estate agency in Mallorca

Any of the above contracts are valid and relevant. Which one you choose will depend on your needs and interests at the time of the sale. Even so, at Pollentia Properties, real estate agency in Pollensa, we have a highly qualified team with experience in this area so if you have a query you can contact our agents at any time and they can assist you with anything you may need.