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Reservation

If you decide to place a reservation on a house you need to be careful. Why? Because there are two ways to do this.

Taking out an option

You declare your intention to buy but would like to investigate a bit further to see if for instance, you can round things of financially. Next you pay a few thousand euros in earnest money and perhaps sign a statement at the estate agents declaring your intent to buy.


Temporary purchase agreement

Signing a "Temporary purchase agreement" with the sellers, at for instance the estate agent's, is taking things one step further. This can also be done through a notary but that doesn't happen very often. The estate agent keeps the money in his care until the deal is completed.
This construction is often used when a house will not be transferred immediately but several months later. Both parties have a certain amount of security in this case. It is often agreed upon that if the seller defaults on the sale he has to pay out the same amount to the potential buyer.

If you or the other party cancels the transaction the canceling party loses the agreed upon amount. Therefore it is smarter to take out an option and turn over a few thousand euros in earnest money. This option is however supposed to be limited to two or three weeks. A Temporary purchase agreement can be applicable over several months.


Never say in hind view: "I just didn't know!"

HipoteCasa will enable you to look before you leap and save you from expensive mishaps!

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