I’m going to buy a property | What types of contracts exist?
When you already have clear that you’re purchasing property, you should consider the types of contracts that exist.
Stock Option Agreement
First, there is the contract option. This is a document by which the purchaser reserves the right to have a timeframe for deciding to purchase a property. This way you have to find sufficient funding to liquidate assets in order to acquire the property or to find another that best meets your needs. In this option, the seller and buyer agree on a time frame and a certain amount of money, with which the duty on other potential buyers is acquired. If the deadline is not met, the seller can keep the advance figure if previously agreed in the contract. It should also be agreed in advance whether the money paid by the buyer in respect of choice will not be incorporated to the final price if the sale is formalized. This purchase option may be accompanied by a price or premium, or be free of charge.
This contract is like a deposit or payment on account of price to pay for housing. It is a commitment, although not definitive, because both buyer and seller can back out at any given time. If it is the seller who desist from the operation, they shall refund the buyer double the contract. If, however, it is the buyer who decides to suspend the operation he would lose the anticipated amount, unless otherwise agreed.
Acceptance of the terms of sale of homes is commonly done through adhesion contracts and general clauses. Before affixing your signature you must read carefully all the clauses of the contract and in particular the rights and obligations of both parties specifying who will be responsible for any charges or taxes associated with the sales transaction. Taxes based on estimators and calculators. The General Law on protection of consumers and users, protects the rights of purchasers and in general, what requirements must comply with the terms and conditions in this type of contract.