A PPC is the abbreviation of Private Purchase Contract (Contrato Privado de Compraventa in Spanish), which is similar to an exchange of contracts in other countries and it holds the same legal implications.
Once the due diligence has been completed on the property, normally within a 2 or 3 weeks period and providing that everything within the documentation of the property is in order, both the buyer´s and vendor´s solicitors will draft the PPC, setting in writing in a more specified manner the terms and conditions outlined during the reservation contract, including price previously agreed with the vendors, completion date and all aspects related to the purchase, for instance, on a resale property to annex to the contract the inventory if the property is sold fully furnished or annex to the contract the quality specifications if the client is purchasing a new build property.
At the signing of the Private Purchase contract, it is it is customary for the buyer to pay to the owner an amount equivalent to 10% of the purchase price (minus the paid holding deposit) in the case of resale property and an amount between 20% to 30% of the purchase price in the case of off-plan properties (minus the paid holding deposit) paid to the developer.