Page 8 - A guide to buying a new property in Andalucia
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3. The Arras contract or full private contract will usually require a 10 to
30% deposit to be paid. The seller cannot pull out of the transaction. If the
buyer pulls out he will lose the deposit paid.
Once both parties sign the main contract and the deposit credited in the
account of the seller, it is binding. The buyer is then committed to pay the
balance of the price, and the seller (once the money has been paid) must
transfer ownership to the buyer.
This is the normal contract when buying a new property from a developer.
4. The investment contract is an agreement for the reservation of a future
property on a development that has yet to obtain planning consents. These
types of agreement are highly speculative in that often they are based on the
“vision” of a development company. Often the attraction of such contracts
is the resale value of the rights acquired under the agreement. These rights
are usually resold prior to the development being completed. If considering
such an investment it is essential that detailed legal advice be sought as there
are special considerations regarding this type of contract.
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