In order to purchase real estate, it is necessary to conclude a contract of sale in the form of a deed. For greater certainty, some parties prefer to sign a preliminary contract, which the security of the parties, stipulating the price, methods of payment, penalties and other important matters for maximum protection.
Legal Frame Law Firm has lawyers who will help you to prepare a preliminary contract for the purchase and sale of real estate, as well as the final notarial deed.
What does a preliminary contract for the purchase and sale of a property contain?
The most important thing a preliminary contract should contain is the price of the property and its description. The value of the property may be paid in instalments in a manner to be determined by the parties. Payment of the price of the preliminary contract is also a guarantee for the purchase of the property.
For the greater certainty of the buyer, by signing the preliminary contract, the seller should provide a set of documents such as: sketch, tax assessment, certificate of encumbrances. In case there are encumbrances on the property, the seller is given a reasonable period of time to delete them.
It is important that the preliminary contract also sets out the time limits for the completion of the transaction or for the deletion of encumbrances. The preliminary agreement may also mention the notary to whom you want the transaction to be confirmed.
If you are buying a greenfield property, signing a preliminary contract is a mandatory step. It should also describe the stages of construction to which the payments are to be linked.
Liquidated damages – for late payment or delayed construction – should also be provided to protect both parties to the transaction.
In the event that one party is in good faith and has fulfilled all of its obligations under the deal, and the other party refuses to sign the final contract, then you can proceed with a lawsuit to have the preliminary contract declared final.
The preliminary contract shall be signed between the parties, who shall identify themselves with an identity document. Notarization is not obligatory
If you need to prepare or review a prenuptial agreement, you can contact an attorney at Legal Frame. We have extensive experience in drafting and signing preliminary real estate purchase agreements, and can assist you throughout the entire purchase and sale transaction.