This process that culminates with the registration of the property in name of the buyer in the Land Registry has several phases:
The first phase should be a thorough investigation of legal, urban and fiscal situation of the property. In specific entries in this blog we will expose how can be carried out this research and the services that Norns can provide in this field to its customers.
Second phase: When the buyer is interested in a property and wants to ensure that it will not be sold to another customer usually signs what has become known as “reservation contract” through this contract the seller or real estate agent who has the responsibility for the sale of the property, is obliged not to sell the property to a third party and in return, the buyer gives a small amount to proof of its intention to buy. This amount, if verified sales finally, is considered delivered on account of the price.
Phase Three: Then when the buyer has a clear intention and ability to purchase, usually signs a private contract. At this time the buyer gives part of the price of approximately 10%.
If the seller is a professional builder who sells housing under construction is required by law to secure the amounts paid on account by the buyer.
Unlike other legal systems such as France, the sale contract does not produce by itself the transfer of ownership from seller to buyer if not accompanied by the delivery of the property or verified by public deed.
However, the clauses of the contract binding the parties and the deed of sale must comply with these clauses. For this reason it is important that these clauses are fair and easy to understand. Of particular importance are those relating to hidden defects, the consequences of non-compliance and costs.
In Norns we offer our clients private contracts models we have drafted clearly and simply chasing the overall balance between the parties. These models can be completed with special clauses to suit the specific needs of each case.
Fourth phase: Both the booking contract as the private purchase contract is optional. What if necessary for the acquisition of the property with full legal security is the execution of the public deed and registration thereof in the Land Registry. Because of its importance these issues will be studied in separate entries.