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Purchase/Sale
Process
Most real estate transactions are “opened” after a written purchase offer is accepted by the seller and when a purchase-sale agreement (promissory contract) is signed by both parties. In most cases, a deposit is required by the broker to transmit the offer to the seller. If the transaction is being conducted directly with the seller, it is highly recommended that a real estate broker or lawyer be consulted before signing any papers or handing over any money.
It is common practice to deliver to the escrow agency, as an advance payment (deposit) the equivalent of 10% of the total price upon signing the purchase-sale agreement, which should contain a penalty clause applicable in the case of a breach of contract by one of the parties.
Normally, when signing the escritura or official deed, which needs to be certified by a Public Notary, the balance is paid and the property is delivered. This should not take more than 45 to 60 days. It is recommended that an escrow account be used for all real estate transactions.
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... published 2007-08-13 |
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