PRELIMINARY AGREEMENT FOR PURCHASE - SALE OF REAL ESTATE - RIGHTS AND OBLIGATIONS OF THE PARTIES

Regardless of whether you are a buyer or a seller, after leaving a deposit from the buyer, with which he declares a serious intention to buy, a preliminary contract is prepared and signed. In this article we will clarify the rights and obligations of both parties involved in the transaction

BUYER

The preliminary contract must contain information about address, area, price and date of entry into possession of the property, final date for notarization of the transaction and methods of payment

Usually upon signing the Preliminary Contract, the buyer pays a deposit in the amount agreed between the parties / usually this is a deposit of 10% of the price of the property /, upon signing the preliminary contract.

It is the buyer's obligation to pay the seller's price within the terms agreed in the preliminary contract.

The buyer has the right to review all related documents for the transaction before signing a Notary Deed.

In case the buyer does not make payment on time, the contract is considered void due to the fault of the buyer and the deposit remains in favor of the seller, unless the contract stipulates a larger amount of the penalty.

If the buyer does not appear before the notary for concluding a final contract for sale of the property, provided that all the conditions of a preliminary contract for concluding a final one are met, he is considered guilty of terminating the contract and the seller may hold the deposit.

SELLER

The preliminary contract must contain information about the price of the property, the final date for notarization of the transaction and methods of payment.

The seller usually receives a deposit of 10% of the price of the property on the day of signing the preliminary contract.

The seller is obliged to provide all necessary documents for the notarial transfer of the property.

The seller undertakes to transfer the property to the buyer on the day of payment of the price for the property.

The seller undertakes not to enter lease agreements with tenants in the property until the notarization of the transaction.

The seller undertakes not to encumber the property with encumbrances (mortgages and / or limited property rights) in any way until the notarial confession.

The seller undertakes to sell the property to the buyer within the period and under the conditions specified in the preliminary contract.

The seller undertakes to bring the buyer into possession of the property within the period specified in the preliminary contract.

In case the buyer does not make payment on time, the contract is considered terminated due to the fault of the buyer and the deposit remains in favour of the seller.

If the buyer does not appear before the notary for concluding a final contract for sale of the property, provided that all the conditions of a preliminary contract for concluding a final one are met, he is considered guilty of terminating the contract and the seller may hold the deposit.

In case the seller does not provide all the necessary documents for the notarial sale of the property in time, the contract is considered void due to the fault of the seller and he owes the buyer a refund of the deposit, as well as a penalty for cancellation of the preliminary contract.

In case the seller does not appear before the notary for concluding a final contract for purchase and sale of the property, provided that all conditions under a preliminary contract for concluding a final one are met, the contract is considered terminated due to the seller's fault, in this case the seller need to return the paid deposit, as well as a penalty for cancellation of the preliminary contract.

On the day of signing the preliminary contract, the seller is obliged to provide the buyer with a copy of the notary deed for the property.

All these rights and obligations of the parties to the Preliminary Contract should be explicitly stated in the content of the same in order to take effect. Therefore, the contract should be drawn up by a lawyer who will protect the parties to the maximum extent.