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The Next Step is to Sign What is Called a Reservation Contract

Booking contract

Once the price is agreed with the seller, the next step is to sign what is called a reservation contract .

This document basically specifies that the price has really been lowered, and it is used to confirm that the property will be  from any online platform in which it is advertised and that the seller and real estate agent will stop offering it to new buyers.

The reservation contract is usually used only in those transactions in America Cell Phone Number List which there is an intermediary, since a direct negotiation between buyer and seller would not require it.

6. Deposit contract

Now we move on to a really important contract, the earnest money contract .

This is the private sales contract in which a real commitment to purchase the home at the  price is .

For this contract to be valid, you will have to pay a certain amount of money to confirm your purchase intention to the seller (which will of course be  from the final payment); and she receives that money confirming that she is going to sell to you.

There are two main variables you have to pay with when it comes to the deposit agreement:

  • The amount of money you pay as confirmation, which is usually 6,000 euros (although you can negotiate and /increase that amount).
  • The duration of the deposit contract . Here we recommend that you always agree to 90 days, so that you have enough time to make the right decision when contracting a mortgage (since the banks will not take you seriously until they see this contract).

But that is not all. There are some negative consequences in case of non-compliance:

  • If you back out after paying this earnest money contract, you will lose that money.
  • And if it is the seller who does not want to continue Cryp Email List with the process, they must return that same amount  by 2.

7. Official valuation

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The next step is to obtain an official valuation for your mortgage .

Why is this point so important?

Because the total amount that the bank will lend you is  on the results of this appraisal (the official value).

Thus, the ideal is that the price found through this valuation is the same as that you have  to pay the seller, or even higher.

If the appraisal ends up resulting in a lower price, the bank will limit itself to lending you 50 or 60% of the money, and you will pay the difference.

Who is in charge of this official assessment?

In general, the bank will suggest or offer its own specialists , although you can always hire this service on your own.

8. Prepare the necessary documents

Before going to the notary, you will have to prepare all the necessary documents.

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