The concept of swap is very ambiguous, since it generally means one thing, but when another word is applied together it means something else.
The swap, itself, is a contract signed by both parties in which the property right of one thing is exchanged for the property right of another thing. The peculiar characteristic is that the domain of one thing is transferred from one person by the domain of another thing to another person. At the moment in which it is made by means of a monetary amount, it will be a sale instead of a swap.
The swap concept can be similar to that of barter. In these two concepts it is understood as an exchange of ownership of one good or property over another, although in barter it is usually done for similar needs (in the case of barter this is not necessary). Even so, the concept is still used, but it is not given the same importance as the sale, for example.
Characteristics of the swaps
To comment on some of the characteristics of the swap operation, we highlight:
- It is a compensatory exchange, so if there is not the same value between the goods, a monetary supplement is usually added to compensate it.
- It is a transfer of ownership.
- Bilateral contract between the parties.
- It is an onerous contract (exchange, and not a donation).
- It can be instantaneous or successive tract.
Among the obligations that the parties must fulfill, we find:
- Ownership of things must be transferred simultaneously.
- Respond to hidden vices that may arise.
- Ensure peaceful possession (that does not lead to mistakes and Free of charge).
- You must answer for the eviction.
- According to the law, the corresponding taxes and / or deed and registration expenses must be paid (in the case of transfer of real estate), if applicable.