When purchasing real estate, a preliminary contract for the sale / purchase of real estate is an inseparable element. This document specifies in detail what is the subject of the transaction, specifies the buyer – seller, the price conditions for which the transaction will be finalized, the date of the final contract and all other parameters to be determined by both parties.
The preliminary contract
For the purchase of real estate is a very important document because it reserves the property in question only for us, thus the seller for the duration of the contract must refrain from further sale.
In addition, in the event of problems, any disputes shall be resolved on the basis of the provisions contained in the contract. Therefore, it is very important that the preliminary contract is drawn up in the best way, with the greatest possible due diligence.
What should be included in the preliminary agreement?
1. Date and place of conclusion of the contract.
2. Personal data of each party: Seller – Buyer
3. Subject of the transaction – type of property, area, property address, land and mortgage register number, together with an indication of the Court which keeps the given land and mortgage register.
4. Statement of the selling party that the legal status disclosed in the land and mortgage register is current and no additional applications for entries regarding a given property have been submitted.
5. Statement by the selling party that the property is free from any encumbrances to third parties.
6. The price for which the property will be sold – purchased (according to the parties’ agreement).
7. Dates and form of payment of the entire transaction price.
8. Date of conclusion of the final contract.
9. Form and amount of transaction security: advance payment – down payment.
10. Bank account number to which payment will be made.
11. Date of issue of the subject of the contract.
12. Statement by the seller that he undertakes to pay all property claims on an ongoing basis until the property is delivered to the buyer.
13. The buyer’s declaration that the legal and technical condition of the subject of the contract is known and accepts it.
14. Annexes to the contract.
Form of preliminary contract
The preliminary agreement can be concluded in two forms – in the form of a notarial deed and in the form of a civil law agreement .
Contract in the form of a notarial deed – an agreement concluded with a notary public for an additional fee. Usually, the fee for such a contract is half the price of the notary public for concluding the final contract. It is a more expensive form of contract, but also safer for each party. In the event of a dispute or conflict. On the basis of such a contract, you can seek legal enforcement of the contract. Termination of such a contract is more difficult than a civil law contract.
Civil law contract – A contract concluded in the presence of the parties, without the participation of a notary public. It is a non-cost contract, it can be written on a computer or in a manual form. It is important that this contract contains all relevant elements for the entire transaction. Termination of such a contract is much easier than in the form of an act, but also at the time of the spot, your claims must be pursued in court.