What about a deposit?

To secure a chosen property, a 10% deposit on the purchase price is usually required on signing a pre-contract agreement. This agreement contains the names and description of the parties, the description of the property, the price, the methods of payment and any general conditions negotiated by the parties. Sometimes in the case of a very cheap property or where the deal will be completed quickly this agreement does not take place and the parties move straight to an exchange of contract phase.

The Notary Public will not authorise any sale without making sure that all the appropriate tax papers and deeds are in order. The purchaser will lose the deposit if he/she backs out of the deal. If the vendor backs out and a pre-contract has been signed, he will have to pay a sum equal to the deposit, as an indemnity to the purchaser, who, of course, gets the original deposit back.