What is a purchase option contract in Venezuela?

Official read in the law or the Gazette. Reported from law firms, press or operators, with their date. Unconfirmed no reliable source: check before deciding.

What it is for

Between agreeing to buy and signing at the Registry, weeks go by: you have to obtain the lien certificate, the clearances, Form 33 and the deed reviewed by a lawyer. The option sets the rules for that time. The seller commits not to sell to anyone else and to deliver the papers; the buyer, to pay the price on the agreed date.

In Venezuelan court rulings it is common to see sums paid “as arras at the time of signing the purchase-sale option” Reported.

Mind one limit: the option does not make you the owner. Against third parties only the sale recorded at the Registry counts (art. 1924 of the Civil Code) Official. The option protects your rights against the seller; it does not give you the property.

The deposit (arras): what the Civil Code says

Article 1263 of the Civil Code says that arras given when the contract is made, unless agreed otherwise, are considered a guarantee of damages for non-performance Official. We read it in a summary of the text, not in its literal wording Unconfirmed.

Two practical consequences:

• “Unless agreed otherwise” means you and the seller can agree on something else. What you write governs.
• It is common to hear that a defaulting seller “returns double”. We did not find that rule in a reliable source for Venezuela Unconfirmed. If you want it, write it into the option.

What the option should say

This list comes from the problems seen at registries and in lawsuits. Review it with your lawyer:

• Who signs. Name, ID number and RIF (tax ID) of the parties. If the seller is married, the spouse’s signature or authorization Reported. If an attorney-in-fact signs, the details of the registered power of attorney Reported.
• The property. Location, area, boundaries, cadastral code (what art. 48 of the Registries Law requires for the description) Official and the registration data of the seller’s title deed.
• The price and how it is paid. How much is handed over as arras, how much at the Registry signing and by what means. If it is paid in foreign currency to a special-taxpayer company, the 3% IGTF may apply Reported.
• The period. The deadline to sign the final sale and whether there is an extension. We found no typical period in a reliable source Unconfirmed.
• What the seller must resolve beforehand. Release a mortgage, lift a ban on selling and encumbering, have the estate solvency certificate if the property is inherited.
• Who pays what. Form 33 is paid by the seller by law (art. 86 of the Income Tax Law) Official; registration, by custom, the buyer Reported. Write it down.
• What happens if someone defaults. What happens to the arras in each case, whether there is a penalty clause and how the money is returned if the sale cannot be made because of a paperwork problem nobody knew about.

What happens if someone backs out

The disputes that repeat most in court rulings are these Reported:

• The seller does not show up to sign at the Registry.
• The seller committed to lifting a ban on selling and encumbering and did not.
• The seller collects the arras and then demands to sign a new option at a different price.

If the buyer defaults, the buyer normally loses whatever the contract says about the arras. If the seller defaults, the way out depends on what was agreed and, without agreement, on a lawsuit. We cannot tell you what would happen in your case: a lawyer has to read your option.

Is it notarized? Yes, and what it costs

The Notary attests to acts that take place in its presence (art. 68 of the Registries and Notaries Law) Official; that is why the option is authenticated there, and the final sale is recorded at the Registry. The 2021 reform sets a Notary fee of up to 2 PTR for a purchase option contract on real estate (art. 86, item 18) Official.

How much is that in money? Zonaven estimated it at about $113 plus folios, using the 2022 reference of about $56.6 per petro Reported. Another commercial source converts the petro at about $154 Reported; with that figure it would be about $308. The petro stopped operating in January 2024 and there is no public rule on how it is converted today Unconfirmed. Ask for the amount at your notary’s office.

An option signed only between the parties, without a Notary, is an unnecessary risk: it leaves open the argument over who signed and when. For a purchase of this size, have it authenticated.

Before handing over the deposit

1. Ask for the property’s lien certificate.
2. Read the seller’s title deed and the previous one.
3. Ask your lawyer to draft or review the option.
4. Hand over the arras at the signing before the Notary, against the authenticated document.

The whole process, from the option to registration, is in how to buy property in Venezuela.

This guide explains the law and the practice; it is not legal advice for your case.