Who keeps the purchase and sale deed?

In real estate transactions, the purchase and sale deed plays a crucial role. This document not only certifies the transfer of property but also secures the legal rights of the parties involved. Determining who keeps this real estate purchase deed document is essential for protecting these rights.

Importance of the purchase deed in real estate transactions

Definition and functions of the purchase deed

Definition of purchase deed: The real estate purchase deed is a legal document that formalizes the transfer of property of real estate from a seller to a buyer. This document is fundamental and must be drafted by a public notary or lawyer to ensure its legal validity.

Main functions:

1. Evidence of the transaction: The real estate purchase deed serves as irrefutable proof that the transaction has been completed. It details the conditions under which the property has been transferred, including the agreed price and the responsibilities of each party.
2. Public registry: Once signed and sealed, the deed must be registered in the public Property Registry. This registration guarantees legal protection against third-party claims and formally establishes the buyer as the new owner.
3. Clarity in sale conditions: The document specifies all conditions agreed between the parties, including warranties, delivery dates, and any other relevant agreement. This helps prevent possible future disputes by providing a clear record of what was agreed.
4. Basis for future transactions: The purchase deed also serves as a reference document for future transactions related to the property, such as mortgages, loans, or further sales.

Importance of the deed for the parties involved: For the buyer, keeping the purchase deed is essential, as it establishes their legal right over the property. For the seller, it provides a formal closure of the sale commitment and the transfer of responsibilities.

In summary, the purchase deed not only documents and legalizes the property transfer but also ensures clarity and legal security for all parties involved.

Importance of the deed for the buyer and the seller

For the buyer:

1. Legal security: Possession of the purchase deed is crucial for the buyer because it legally establishes their ownership of the property. This document is definitive proof that the buyer has acquired rights over the property in accordance with the law.
2. Protection against third-party claims: Being registered in the public registry, the deed protects the buyer against possible claims or litigation from third parties disputing the property. This registration acts as a legal shield that confirms the legitimacy of the new owner.
3. Facilitates future transactions: To carry out any future transaction, such as selling or mortgaging the property, the purchase deed is indispensable. Without this document, the process of proving ownership would be complicated and risky.

For the seller:

Confirmation of transfer: The purchase deed allows the seller to demonstrate that they have legally transferred the property and fulfilled their contractual obligations, protecting them from future claims related to the sold property.

Clarity in responsibility: This document clarifies that all prior responsibilities and charges have been transferred to the buyer, freeing the seller from future legal or financial problems linked to the property.

Record of the operation: The deed provides a detailed record of the operation, including the price, payment conditions, and other important clauses, which facilitates the resolution of possible disputes or subsequent misunderstandings.

Legal process and custody of the deed

Legal process for issuing and registering the deed:

1. Drafting the deed: The real estate purchase deed is drafted under the supervision of a public notary, who ensures that all terms of the agreement are clearly stipulated and that the document complies with all current legal regulations.
2. Signature and authorization: Once drafted, the deed must be signed by both parties, buyer and seller, in the presence of the notary. The notary then certifies the signature, guaranteeing that the parties have given their consent freely.
3. Registration in the public registry: The next step is to register the deed in the Public Property Registry. This registration is crucial, as it confers legal formality and publicity to the property transfer.

Custody of the deed: Custody of the purchase deed generally falls to the buyer, as they are the one who most needs to demonstrate property and title in future transactions. It is recommended to keep the document in a safe place, such as a safety deposit box, to protect it from damage or loss.

Consequences of not keeping the deed properly

Risks for the buyer:

1. Difficulty proving ownership: Without the deed, it can be extremely difficult for the buyer to legally prove they are the owner of the property, especially in legal situations or when trying to sell or mortgage the property.
2. Vulnerability to third-party claims: The lack of an accessible deed increases the risk that third parties may make claims on the property, legally complicating the situation of the legitimate owner.

Risks for the seller:

1. Complications in releasing responsibilities: If the buyer loses the deed and disputes or future claims arise, the seller may face legal problems if there is no clear document verifying the property transfer.
2. Problems in tax declarations: The deed is a key document for tax purposes as well, especially in declaring capital gains or losses. The absence of this document can complicate these processes.

Keeping the purchase deed in a safe place is essential to protect the legal and financial interests of the parties involved. Its loss or deterioration can have serious and lasting consequences, affecting the owner's ability to manage their property freely.