The downpayment is the initial payment of a sum of money that the buyer pays in the early stages of purchasing the property. Normally it is 20% of the total value, however it is negotiable and represents a part of the total purchase price.

It is a “down payment” that allows the seller to take the property off the market with the assurance that the buyer will complete the payment in the future. It is possible that after that, the process is carried out through an escrow or through another legal figure that allows the seller to collect the missing amount of money.