WHAT IF COVID-19 CAUGHT YOU IN THE MIDDLE OF BUYING OR SELLING YOUR HOUSE?

Without warning, the Covid 19 Virus crisis has paralysed the country’s economic activity, leaving private buyers and sellers in the air.

At this moment, and after the state of alarm has been declared, the Notary’s offices will only allow those signatures that are of an urgent nature.  While it is true that each Notary is free to say that it is signed in his office, the truth is that issues such as a deposit contract or the purchase of a home are not considered to be of an “urgent” nature.

The most peaceful and recommended solution is to go to the re-negotiation between the parties, extending the period for granting the deed of sale before the Notary.

The only case that could be considered as urgent would be that of those people who run out of rent and need to enter their home.

Purchase contracts are contracts between individuals by which they undertake to carry out the sale of a property; this commitment is consolidated through the payment of a deposit  by the buyer and the prohibition on the seller to sell the property to a third person during the term of the deposit contract.

This money given by the buyer, which we will call “deposit”, acts as a penalty in case of noncompliance. If it were the buyer who decided not to go ahead with the sale, he would lose the money given on account, but if it were the seller who decided to back out of the sale, he would have to return to the buyer twice the amount of the deposit.

A deposit contract always establishes a period within which the sale must be completed, through the corresponding deed of sale; if this period coincides with the state of alarm, it must be extended until the end of this state without this situation being sufficient reason for the buyer to understand that the seller is not fulfilling its obligation to sell the property, nor sufficient for the seller to understand that the buyer is backing out of the sale. In this case, the term imposed in the deposit contract will be delayed until the end of the alarm situation.

If you have recently bought a property in the area of Torrevieja, Rojales, Orihuela Costa, Villamartin, La Zenia, or surrounding areas, and you need legal advice, do not hesitate to consult us, at López Morueco Abogados, we will be happy to help you.