ICONOS FINALES-TRAZADOS

Real estate sale

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Effectiveness against third parties of the consideration established in a sale

The General Directorate of Legal Security and Public Faith (DGSJFP) has resolved an interesting case on the sale of a property in which, in addition to the payment in money, other obligations were included, such as the delivery of a home and a storage room, carrying out works, and paying eviction compensations. All this was signed in a, such as the delivery of a home and a storage room, carrying out works, and paying eviction compensations. All of this was signed in a public deed and was registered in the Property Registry. However, a clause was also included that prohibited these obligations from being transferred to another person without the consent of the sellers.

When a company that acquired the property tried to cancel these obligations from the registry, the registrar refused, stating that it can only be done with the consent of the party entitled to receive them or through a final court judgment. On the other hand, the company argued that these obligations were personal, not real, meaning that they only affect those who signed them, not future owners or third parties.

The DGSJFP has sided with this latter position. It has clarified that, even though these agreements are registered in the registry, their nature remains personal (they do not affect everyone, only those who signed them) and not real (they do not continue to burden the property if sold to another person). Therefore, if the deed expressly prohibits the transfer of these obligations, they cannot be demanded from any new owner or have effects against third parties outside the original signatories.

Our professionals can advise you on the negotiation of a real estate sale contract and/or earnest money agreement and analyze the clauses that may be proposed by the other party from the perspective of your claims and interests
Real estate sale

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