It is the notarial document through which the owner of an asset (usually real estate) grants a third party the right to acquire that asset in exchange for an agreed price and within a certain period of time.
Through the following calculator the user/consumer is offered the possibility of knowing with great accuracy the expenses that he/she will have to face at the time of formalizing the notarial purchase option on a property. This calculator has parameterized both the notary and registry fees as well as the regional regulations in force depending on the location of the property that is the object of the option.
The right of option to purchase real estate is a right in rem, of voluntary acquisition, by virtue of which the owner of real estate (called the grantor), normally in exchange for a premium (i.e., an economic amount), grants the right to a third party (called the optionor), to acquire the real estate, under the conditions agreed in the title of constitution of this right of option.
Thus, by means of this right, the owner of a property grants to a third party, in exchange for a monetary amount, the possibility that this third party, at a future time, acquires the ownership of that property, paying at that time the amount agreed upon when the option right was created.
As can be observed, the key and defining element of this right is that it is voluntary or conditioned to the will of the optioning party, so that the transfer of the property is only a hypothetical possibility that will occur, or not, depending on what the optioning party decides in the future. In short, what the right of option grants, as it is commonly said, is the "possibility" of buying a property in the future, leaving it in the hands of the opting party whether this possibility becomes a "reality" or, on the contrary, is discarded, so that the ownership of the property remains in the hands of the original grantor.
To understand the practical usefulness of this institution, the following assumption is made:
<ejemplo>La señora Regina, una acaudalada empresaria de Barcelona, vive en el piso 5-1º de un bloque de viviendas plurifamiliar situado en la ciudad Condal. Asimismo, la señora Regina tiene una hija, llamada Berta, que en la actualidad está viviendo en Londres por motivos profesionales.<ejemplo>
<ejemplo>La ilusión de Regina es que, en caso de que su hija vuelva a vivir a Barcelona para instalarse definitivamente, tenga la posibilidad de vivir en su mismo bloque, para así poder tener una convivencia estrecha.<ejemplo>
<ejemplo>A la vista de este deseo, la señora Regina puede optar por negociar con su vecino del piso 5-2º, esto es, los señores Joan y María, la constitución de un derecho real de opción de compra, en virtud del cual, a cambio de 50.000 euros que la señora Regina pagará a los señores Joan y María, estos le conceden la facultad de adquirir esta vivienda que les pertenece (recordemos, el 5-2º contiguo a la vivienda de la señora Regina), pactando en tal caso un precio de compra de 500.000 euros.<ejemplo>
<ejemplo>Así pues, mediante la constitución de este derecho real de opción de compra, la señora Regina se asegura la posibilidad de adquirir, en un futuro, el piso que ahora pertenece a los señores Juan y María, abonando a estos los 500.000 euros pactados, todo ello si finalmente, dentro de, imaginemos, uno, dos o tres años, su hija Berta vuelve a vivir a Barcelona, mientras que, por el contrario, si Berta se instala definitivamente en Londres, como para la señora Regina ya no tendrá sentido la operación, el derecho de opción no se ejercitará en el plazo pactado, tras lo cual, se extinguirá, con lo que la propiedad del piso seguirá en manos de los señores Juan y María.<ejemplo>
As just indicated in the preceding question, the right of option to purchase gives the optionor the possibility, in exchange for a premium (normally), to acquire the ownership of a real estate property at a future time, if the personal, family or economic conditions at that time so advise or, on the contrary, to discard its exercise, if it is in his best interest, in view of the new circumstances.
In view of the above, as can be seen, this instrument is a very useful resource for any person who, for whatever reason, wishes to ensure the possibility of acquiring, in a preferential manner, a certain property at a future time, but already agreeing the conditions of this hypothetical sale and purchase at the present time.
Thus, in practice, this resource may be very appropriate when, for example:
In accordance with Catalan civil legislation (article 568-2 of Book V of the CCCat), the real rights of option to purchase that relate to real estate must be constituted in a public deed and, likewise, must be registered in the Land Registry.
It should also be taken into account that, in accordance with mortgage regulations (Article 14 of the Mortgage Regulation), in order to register this right of option to purchase a real estate property, in the deed of incorporation (i.e., in the title deed):
The exercise of voluntary acquisition rights entails the acquisition of the property in the same legal situation in which it was at the time of incorporation.
Likewise, its exercise also entails the extinction of incompatible rights subsequently constituted on the property, if the right had been constituted in rem.
Of course, it is fully possible to create a call option right on several properties(the classic case in which an investor creates a call option right on several houses that a developer is building).
In such a case, however, it is necessary to take into account that, in such a case, it will be necessary to indicate an individual price for each one of the properties in the deed of constitution of the option right, for the purpose of making possible the exercise of the rights separately.
However, the Catalan Civil Code establishes that in these cases it is also possible to constitute the right of option by simply indicating a global price for all the properties (without individualizing the purchase price of each of the properties that make up the globality of the agreed assets), in which case it will determine that the exercise of the right of option can only be carried out jointly, on all the properties.
It is, of course, possible to create a right of option on certain parts of a property, or even on its buildability. In such cases, the acquisition price must be fixed taking into account the surface measurement or other determined parameters or modules.
Indeed, it is possible to constitute a purchase option right in favor of several optionors(for example, in favor of 3 siblings). However, having said that, the instrument of incorporation must specify the manner in which the exercise of such right must or may be carried out (i.e. whether it must be carried out jointly by all of them, individually by any one of them, etc.).
And, if not specified, if the right of acquisition has been constituted in favor of several holders proindivisa, it must be exercised jointly by all the holders or by one or more of them by assignment of the others.
In accordance with the Catalan civil law, the right of option, being a "right of voluntary acquisition", can be constituted by any title, that is to say, through onerous or gratuitous title.
Thus, being the normal thing that the constitution of the right of option is made in exchange for the receipt of a premium, which will be collected by the current owner who constitutes this right in favor of the opting party, it is not less certain that it can also be constituted as a free business in which no premium is involved in exchange.
<ejemplo>Así pues, por ejemplo, un padre puede constituir un derecho de opción de compra sobre una finca que le pertenece, a favor de su hijo, sin que medie contraprestación o prima alguna, sino simplemente a título de mera liberalidad dada su estrecha relación familiar y sentimental.<ejemplo>
As a general rule, the premium agreed as consideration for the constitution of the option right will not form part of the price, if any, to be paid by the optionee if he/she finally decides to exercise the option right constituted.
In this sense, the Catalan Civil Code establishes that "the premium agreed in the constitution of the right is only imputed to the acquisition price if this has been expressly stipulated".
<ejemplo>Así pues, por ejemplo, Juan constituye un derecho de opción de compra sobre una finca de su propiedad a favor de Toni, pactándose una prima de 20.000 euros y un precio de compra futuro de 300.000 euros, si no se dice nada al respecto, llegado el momento, si Toni decide ejercer el derecho de opción, para la adquisición del bien deberá abonar a Juan esos 300.000 euros pactados.<ejemplo>
<ejemplo>Por el contrario, si hubieren pactado expresamente que la prima formará parte del precio en caso de ejercicio del derecho de opción, en tal caso, Toni deberá abonar a Juan 280.000 euros (esto es, los 300.000 euros del precio de compra pactados, menos los 20.000 euros entregados en concepto de prima cuando se constituyó el derecho de opción).<ejemplo>
In any case, what is reasonable and more usual is that the premium does not form part of the price, but is constituted as an element of remuneration in favor of the grantor, as consideration for the fact of allowing the option holder the possibility of acquiring that property in the future, if he deems it appropriate.
In accordance with the Catalan civil regulations (article 568-6 of Book V of the Civil Code of Catalonia), the title of constitution of the right of option must contain, as a minimum, the following data:
In fact, it is normal for a price or monetary consideration to be agreed, so that, if the purchaser decides to exercise the purchase option and acquire ownership of the property, he pays the grantor the amount of money that has been agreed (for example, 200,000 euros).
However, the Catalan Civil Code expressly determines that the consideration may be of a non-monetary nature, so that, where appropriate, the parties may agree that it has a nature other than money (for example, that the opting party delivers in exchange a pictorial work of his property of great economic value).
The answer to this question can only be in the negative, so that the option right cannot be exercised sine die by the opting party, but will be limited to the term agreed by the parties in the deed of incorporation and, failing that, to the maximum terms established by law.
In accordance with the Catalan civil law, the right of purchase option may be constituted for a maximum period of ten years, so that, after this period, if it has not been executed by the optionor, such right will be extinguished and he will no longer be entitled to it.
Likewise, in relation to the term of duration, it is necessary to take into account the following issues:
In effect, the assets subject to an option right are alienable without the consent of the optionors, and the acquirers are subrogated to the obligations that, if applicable, correspond to the grantors of the right.
<ejemplo>Así pues, por ejemplo, si Juan constituye, sobre una vivienda que en la actualidad le pertenece, un derecho real de opción de compra a favor de Olga, y el mismo se inscribe en el Registro de la Propiedad, si posteriormente Juan vende esa finca a Tomás, con independencia de esta transmisión, Olga podrá ejercer su derecho de opción de compra, adquiriendo la propiedad de esta y extinguiendo así el derecho de Tomás.<ejemplo>
In fact, the option rights in favor of the opting party may also be transferred, in general, unless they have been constituted in consideration of the holder.
<ejemplo>Así pues, siguiendo el ejemplo anterior, Olga podrá vender su derecho de opción de compra a un tercero, por ejemplo, su amiga Débora.<ejemplo>
<ejemplo>No obstante, si este derecho a favor de Olga lo hubiere constituido su madre, a su favor, en atención a su relación familiar de madre – hija, Olga no lo podrá vender a su amiga.<ejemplo>
The owners of the real estate on which the right of option is constituted shall be obliged to conserve with due diligence the real estate in question subject to the right of option and, likewise, shall be liable before the optionors for the deterioration that such property suffers due to fault or fraud.
For their part, the holders of the right of option have the right to inspect the property subject to the right of option to check its state of conservation.
In accordance with the Catalan civil law, the improvements and accessions introduced by the owners of the property, introduced after the constitution of the right of option, will belong to the optors, who will not be obliged to pay the amount thereof.
<ejemplo>Así pues, si por ejemplo, Andrea posee una vivienda unifamiliar, y concede un derecho de opción de compra a favor de Paula, si posteriormente Andrea realiza unas obras para realizar una piscina en la finca, con un coste de 20.000 euros, cuando Paula ejerza el derecho de opción de compra y adquiera la vivienda (si ello sucede así finalmente), Andrea no tendrá derecho a reclamar importe alguno por esos 20.000 euros de más invertidos en la construcción de esa piscina.<ejemplo>
In relation to this aspect, it is necessary to indicate that the Catalan Civil Code establishes that the holders of the right of option, if the assets that are subject to it are totally lost due to an act of God, force majeure or the act of a third party, cannot demand the return of the premium paid.
<ejemplo>Así pues, por ejemplo, recuperando una situación de actualidad en estos momentos, si se constituye un derecho de opción sobre una vivienda en la Garrotxa, y al entrar en erupción un volcán la destruye, el optante no tendrá derecho a reclamar que se le devuelva el importe que pagó como prima para constituir el derecho de opción, pues el concedente no tiene responsabilidad en la destrucción del bien.<ejemplo>
On the other hand, if the total loss is caused by the fault or fraud of the grantors of the right or of the owners, they must return the premium paid, without prejudice to compensation for damages caused.
<ejemplo>Así pues, si por el contrario, una vez constituido el derecho de opción sobre la finca, sus propietarios realizan una actividad ilegal en la misma (por ejemplo, la elaboración de material pirotécnico careciendo de las autorizaciones administrativas pertinentes) y la vivienda se incendia y destruye, al haberse causado el daño de forma negligente por parte del propietario concedente de la opción, el optante tendrá derecho a recuperar el dinero que pagó en su momento en concepto de prima, como contraprestación a la constitución del derecho de opción.<ejemplo>
In the case of a partial loss, the optionors may choose between not exercising their right or exercising it on the remaining part, in which case they must pay the proportional consideration.
In this case, in addition, if the partial loss is caused by the owners' fault or willful misconduct, the owners shall indemnify such owners for damages and, at the option holders' option, return the corresponding part of the premium.
When the time comes, if the optionors decide to execute the purchase option and, therefore, to acquire the ownership of the property, they must first, of course, communicate their will to the grantor. For this purpose, the optionor must notify the grantors or owners of the exercise of the right of option, at the address stated in the deed of incorporation, normally by means of a burofax, in which they will be summoned to a specific date and time to formalize the purchase and sale agreed at the time.
On that day, the parties will appear at the Notary's office and will sign the deed of sale, after which the option holder will pay the price agreed at the time in the deed of incorporation of the option, thus perfecting the sale and purchase transaction.
Subsequently, in order to protect his right, the opting party, as the new owner, must register this deed of sale at the Land Registry.
If the optionor has notified his will to exercise the right of option and, when the day and time appointed has arrived, the owner does not attend the Notarial signature, the optionor, in order to exercise his right, if the option of unilateral exercise of the right has not been foreseen (as will be seen in the following question), must go to court to be able to satisfy his claim.
In effect, the Catalan civil law allows a unilateral exercise of the right of option to purchase, that is, the possibility for the optionor, on his own, to exercise the option to purchase and acquire the ownership of the property without the consent of the grantor or owner of the property (i.e., without the need for him to go to the Notary's office to sign the purchase-sale).
In this case, as indicated, the opting party may unilaterally exercise the registered option right provided that the following conditions are met:
In accordance with the Catalan Civil Code, the option right will be extinguished (in addition to the general causes that affect any type of real right):
In fact, the right of option to purchase is subject to taxation, specifically to the Tax on Onerous Property Transfer and Documented Legal Acts, being the taxpayer (i.e. the person who will pay the tax) the opting party, i.e. the person who will acquire the ownership of the property if he executes the option.
On this basis, it is necessary to indicate that, in practice, the purchase option may be subject to either of the two types of this tax, i.e., TPO or AJD, depending on the quality of the grantor of the option, i.e., the owner of the property granting the purchase option to the optionor.
Finally, it should be noted that, in relation to the taxable base (i.e. the amount on which the tax will be calculated), the highest value between the price of the option or premium or 5% of the taxable base of the main transaction should be taken as a reference.
The grantors will have to provide an ID card. In the case of a foreigner, a passport and the corresponding NIE will be required.
In the event that any of the parties is a company, a copy of:
a) Deed of incorporation (and, if applicable, subsequent deeds modifying the same, such as a change of company name, registered office, etc.) must also be provided.
b) Deed of appointment of the company's representative (such as, for example, the deed appointing the sole director of the company as such).
c) Deed of manifestation of beneficial ownership (document identifying the natural person who, if applicable, holds more than 25% of the company's share capital).
In any case, the notary's office will also carry out a telematic consultation of the Mercantile Registry to verify that all the information provided is correct, up to date and in force.
Authentic copy of the public deed or public document from which the ownership of the property to which the deed will refer (such as, for example, deed of sale, donation, acceptance of inheritance, etc.).
It is recommended that the optioning party (future buyer) request a simple registry note from the corresponding Land Registry to ascertain the identity of the owners of the property, as well as its characteristics and, if applicable, any encumbrances that it may have. If the buyer does not request it, the Notary's Office will also do so on the day of the signing, in order to certify that the person who grants the option on the property is really the owner of the same.
On the day of the signing of the transaction, a copy of the bank check with which the payment will be formalized or, if applicable, proof of the bank transfer through which the payment of the option premium is made, must be provided to the notary. If payments have been made in advance, it will also be necessary to provide proof of such payments.
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