Next, we will address an issue that is often highly controversial among the parties to a deposit agreement and that frequently leads to significant conflict.
Carlos Baño's Real Estate Lawyers in Alicante León He has extensive experience in these cases, having to act in defense of our clients’ rights, which are often disregarded.
Deposit Agreement
The deposit agreement is a legal concept that, in practice, almost serves as a substitute for the Private Real Estate Purchase Agreement in cases where sales between individuals.
That is why, in practice, these contracts must include all the terms and conditions governing the sale, since that document then serves as the basis for the notarized deed.
For Real Estate Law Attorneys at Carlos Baño León The issue that generates the most controversy and leads to the most lawsuits is the parties’ conduct regarding the deadline for executing the deed.
It is essential to specify in the earnest money agreement the timeframe within which the deed must be executed or the deadline by which it must be executed, and this should always be left to the buyer the choice of Notary Public and the parties agree on the notice period within which the buyer must notify the salesperson the date of deed registration.
And at this point, given the significance of the engagement ring, the financial loss paid by the buyer in the event of a breach; or the seller's obligation to pay twice as much as what was received In the event of a breach on your part, it will be understood that this is a situation in which there are often conflicting interests and good faith is lacking; therefore, we always recommend seeking advice from lawyers when drafting these contracts.
Once these terms have been established in the contract, real-world situations give rise to a multitude of cases, and this is the experience of Carlos Baño León's Law Firm in Alicante when he has to advise buyers or sellers who are encountering problems during the closing process.
Real Estate Law Firm
The general rule is that if the parties act as good faith There shouldn't be any problems, but sometimes that's not the case, and the parties see an opportunity to profit by keeping the deposit and turning this issue into a dispute.
The experience of this real estate law firm in Alicante The fact is that sometimes the buyer is unable to meet the deadline and therefore tries to delay the process by citing reasons that are not true or accurate; and sometimes the seller simply does not have the necessary documentation to complete the deed transfer and likewise resorts to citing false reasons.
In addition, there are times when the parties before the the other party's inability to perform and in the face of his request for longer term respond negatively when they see the possibility of to profit and sometimes as well lawyers of this office They have seen it once they have subscribed to a deposit agreement to salesperson another, better buyer has come along, so there are many possible reasons that could jeopardize the fulfillment of a deposit agreement That's why we always recommend staying very vigilant, and for that, there's nothing better than having the ongoing guidance of a lawyer who specializes in real estate law You can find them at Carlos Baño León's Law Firm in Alicante. Sometimes we try; there are many of them, but we're going to mention the last one—the most recent one—that we've received in the last few days.
Following the signing of the deposit agreement The buyer has to take a business trip abroad and cannot attend the Notary Public during the days of the deadline and therefore requests that the salesperson through its agency one extension a few days later, and he receives a reply from the agent stating that another date—earlier than that trip—has been set, which is then confirmed via WhatsApp.
A few days before that new date, the agent warns that the deed cannot be executed because a document is missing and that it must be done on the last day of the period specified in the deposit agreement.
The buyer faces the dilemma of seeing that it will soon expire deadline and that he won't be attending the Notary Public which means he would be in breach of the earnest money agreement and would therefore forfeit the money he paid; in fact, that is what the agency has told him.
Lawyers Specializing in Real Estate Law in Alicante They have taken over the case and have asked the officer to extend the signing at a notary's office alleging that the agency acted in bad faith and that a request will be made for Notary Public another date for the deed to be executed, and if they fail to appear for the execution of the deed, it will be deemed that they have breached the agreement, and they will be required to pay double the deposit.
The most important thing is that when the day of the proper registration the salesperson well, the buyer does not, without the other party's knowledge, obtain a certificate of absence and, therefore, proof that they attended the Notary Public one party agrees to the deed and the other does not.
That's why our Lawyers in Alicante As soon as these kinds of issues come up, they immediately get in touch with the Notary Public to document some form of action and justification that prevents the other party from obtaining this evidence of noncompliance, which is achieved by drawing up a record of the other party’s failure to appear on the designated date for deed registration.
