THE CIVIL CODE OF CATALONIA ART. 621-49

On 1/01/2018 the VI book of the Civil Code of Catalonia came into effect, which regulates the obligations and contracts. Today we analyse article 621-49 on purchase and sale transactions with third-party financing, usually a banking entity.

 

 

1. If the purchase and sale contract provides for the financing of all or part of the price by a credit institution, the buyer, unless otherwise agreed upon, can rescindthe contract if they documentary justify, in the agreed terms, the appointed entity's refusal to grant the financing or to accept the buyer’s subrogation in the mortgage established on the property, unless the denial is a consequenceof the negligence of the buyer.

2. The buyer's withdrawal obliges the seller to return the amount that had been delivered and, where appropriate, of the down payment, and obliges the buyer to leave the seller in the same situation in which they would beif there hadn’t been a termination of the contract, without prejudice to the provisions of the mortgage legislation.

 

 

Therefore, the Civil Code of Catalonia establishes that if the buyer cannot obtain the necessary financing for the purchase, they can withdraw from the contract without losing the quantities delivered.For this to be possible, two basic requirements must be met:

1. The down payment documents or private contractmust state that the purchaser expects to be financed by a credit institution.
2. The buyer must documentary proof the entity's refusal to grant the financing, thus explaining that there hasn’t been a negligence.

 

As always, if you sell or buy in Catalonia, good advice is essential to avoid future problems.


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