Ms Elena Montesinos is an ‘old school’ examined and certified real estate agent and transaction expert, based in Moraira on Spain’s Mediterranean ‘Costa Blanca’. Elena has made it her quest to ensure that buyers less familiar with established property transaction process in Spain are well and safely guided through the process of realising their dream of a property in the sun. All too often, foreign buyers fall into the trap of relying on below-standard agents and counsel promoting themselves as ‘speaking your language’ but not adequately familiar with localised rules and correct practice – and who often do not have the client’s best interest at heart.
A Reservation Agreement with an associated Reservation Fee, typically of Euro 3,000 or more, is widely used under established property transaction procedure to provide an element of mutual protection. For a prospective buyer, this is to compensate the vendor for agreeing to take the property off the market for a pre-agreed period of time (e.g. 2 weeks), giving the buyer this period of exclusivity to prepare and sign a more comprehensive 10% Deposit Contract with the vendor.
If the buyer decides not to proceed with the signing of the 10% Deposit Contract within the pre-agreed exclusivity time period, the Reservation Fee would then typically continue to belong to the vendor without further obligation on the vendor’s part, unless either (a) the exclusivity period had been extended by mutual agreement, or (b) verifiable ‘force majeure’ causes or (c) genuine legal issues or construction problems were present and could be substantiated.
In the case of legitimate issues in relation to the property having been highlighted during the preparation of the 10% Deposit Contract, appropriate resolution stipulations would then become part of the 10% Deposit Contract as matters to be resolved by the vendor prior to the Completion Date, the latest date for which would also be stated in the 10% Deposit Contract. Failure on the part of the vendor to resolve such issues to comply with the signed 10% Deposit Contract, prior to the agreed completion deadline, would then give the buyer the option to request for the immediate return of the full 10% deposit (which would include the money initially paid as the Reservation Fee).
To ensure you are best protected, seek quality Advice from Certified Specialists, knowledgeable about Localised Rules and Correct Practice!!
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