What you need to know about the Earnest Money Contract (ARRAS):

The earnest money contract is regulated in article 1454 of the Civil Code, thus providing greater legal certainty to guarantee the acquisition of a business or real estate property.

Key aspects that an earnest money contract should consider to avoid possible inconveniences:

• Specify the amount of the deposit given as earnest money.
• Establish a precise deadline (date and time) for the formalization of the purchase agreement, as well as the method of notification.
• Define the procedure by which the buyer will inform the seller; in the absence of an agency or consultancy, the use of a burofax is recommended.
• Determine the way in which associated expenses will be covered (notary, registries, municipal capital gains tax, etc.), either in accordance with the law or as agreed upon by the parties.
• Detail and document with photographs/videos the interior decoration and the inventory sold.

Earnest money ensures the transaction for both parties, as in case of breach by the buyer, they will lose the amount given; whereas, if it is the seller who does not comply, they must reimburse double the amount received.