"Reservation contratct" instead of "Arras"

PropHero Advisory cannot purchase properties, as it is not within its corporate purpose - therefore, it cannot subscribe "Arras" In transactions subject to VAT, the earnest money must also include VAT (Art. 75 LIVA), which means PH must pay it without later receiving the corrective invoice when the buyer is subrogated, potentially even affecting different fiscal years. In practice, the transfer of arras to the client/buyer is not being correctly notified in most cases, meaning PropHero would be liable to the seller until the sale is completed. We can give the seller the same amount currently delivered as earnest money to reserve the property. Proposal for a new model - Adopt a reservation contract with real estate intermediation, in which PH delivers an amount as a reservation fee and the seller is obligated to sign an earnest money contract, agreed upon with PH, directly with the buyer so when the buyer signs the contratct, the seller returns the money to PH (even - allowing for interest or penalties to be agreed upon in case of delay, and even allowing the operation to be halted if this return is not fulfilled). Sponsor: María Concheso Impacto esperado: - Shift to a process that is better aligned with our real corporate purpose - Avoid taxes at the previous payments P&T Team: Legal