Buying or selling a home is a complex process. It requires preparation, review and control. But it also has clear advantages compared with going through an estate agency.
You can negotiate directly with the other party, save costs and keep more control over the full process. Still, when the time comes to formalise the agreement, one of the biggest questions appears: how to make a private home sale contract correctly.
And that is a completely normal question. It is not something most people do regularly, so it is also very common to have doubts about the documents you need, the clauses that should appear and the right way to reflect everything that has been agreed.
If you are preparing a transaction and do not want to waste time, at Firma Vivienda you can generate all the documentation needed for your property sale in a guided way and with support during the process. You can also manage the full private property sale step by step, organising contracts, paperwork and formalities from one place.
What a home sale contract is
The home sale contract is the document that records in writing the agreement reached between buyer and seller. It is essential to transfer ownership of a property and to leave a clear record of the agreed terms.
It includes key points such as the sale price, the payment method, the identification of the property and the planned handover date.
That is why it is not a good idea to rely on a random template downloaded from the internet without reviewing it properly first. Every property is different, and every transaction is too.
Difference between an earnest money contract and a home sale contract
One of the most common sources of confusion is thinking that the earnest money contract and the home sale contract are the same thing.
They are not.
Before the final sale, the parties will often sign an earnest money contract, which works as a prior commitment between them. At that stage, a sum of money is usually paid as a deposit and the conditions that must be met before going to the notary are set out.
If you want to understand that document better, you can read what must be included in an earnest money contract and review this earnest money contract template, where we explain its structure and the key clauses.
The home sale contract comes afterwards. It is the document that definitively records all the terms of the transaction and will serve as the basis for the public deed.
Details that must appear in the contract
One of the most important points when talking about how to make a private home sale contract is the information that should be included.
The first step is to identify buyer and seller correctly. It is also important to describe the property with as much precision as possible to avoid any future doubt.
As a minimum, the contract should include:
- Full buyer and seller details
- Exact property address
- Cadastral reference
- Land registry details
- Agreed sale price
- Payment method
- Planned handover date
The clearer this section is, the easier the whole transaction becomes.
How to reflect the sale price correctly
The price is one of the essential elements of any contract.
And even if that seems obvious, it is important for it to be described in full detail. It is not enough to state a figure.
It also helps to specify whether any amounts have already been paid, whether there is a signed earnest money contract and whether deferred payments are planned.
Transparency around payments prevents many later disputes.
What happens with charges on the property
Another section that should never be missing is the one dealing with charges on the property.
The buyer has the right to know whether the property has an outstanding mortgage, any attachment or any other circumstance that could affect the transaction.
That is why it is always advisable to review the registry situation before signing. In fact, one of the best decisions you can make is to request an updated land registry extract to confirm that the information matches reality.
It is a simple step and gives a lot of peace of mind.
The handover date and possession of the property
Sometimes buyer and seller assume that possession of the property will be transferred on the same day the contract is signed.
And very often that is true. But not always.
There are transactions in which the seller needs to remain in the property for a few more days, or cases where specific dates are agreed for handing over the keys.
That is why this point should be stated clearly in the contract. The more detail is recorded in writing, the less likely misunderstandings are to arise.
Costs associated with the sale
Another important point is making clear which costs each party will assume within the transaction.
Although the law provides general rules, there are situations where buyer and seller agree on specific terms and it is best to define them clearly from the beginning.
It also helps to have a broader view of costs when preparing a transaction. If you are selling one property in order to buy another, this guide on costs of selling a house may help, because many people focus only on the sale price and forget about taxes and other relevant costs.
Having a complete view of the costs helps you make better decisions.
Common mistakes when drafting a home sale contract
Most problems do not arise from major errors.
They usually come from small details that nobody reviewed carefully enough.
Some of the most common are using generic templates without adapting them, describing the property badly, failing to reflect payments properly or leaving vague clauses that can be interpreted in different ways.
It is also common not to review the property documents in advance or to assume that certain points are already clear when they are not actually written down.
That is why it is worth taking time to review the document before signing.
Is it mandatory to sign before a notary?
A private home sale contract is legally valid.
Even so, it is standard practice to later formalise the transaction in a public deed before a notary.
The deed allows the property to be registered in the Land Registry and provides greater legal security for both buyer and seller.
That is why almost all property sales end up being formalised this way.
How to simplify the whole process
At this point, you have probably already seen that knowing how to make a private home sale contract involves far more than downloading a template from the internet and filling in a few details.
There are documents to check, clauses to adapt and important points that should be verified before signing.
The good news is that today you do not have to do all of this on your own.
With Firma Vivienda, you can generate contracts tailored to your situation, organise all the documents and manage the transaction step by step to avoid many of the most common mistakes. You can also review how Firma Vivienda works before getting started.
Formalise your property sale with greater security
A good contract protects both buyer and seller.
It is not just about ticking a box. It is about making everything agreed fully clear and reducing risks as much as possible throughout the transaction.
If you want to manage your property sale more calmly, generate your documentation in a guided way and make sure no important clause is missing, you can rely on Firma Vivienda throughout the whole process.
And if you have questions about your specific case, you can always contact our team to receive personalised guidance before signing.