Preliminary agreement – basic elements Preliminary agreement and mortgage Preliminary agreement for the sale of real estate Preliminary contract for the sale of the plot Preliminary agreement for the purchase of real estate How much is the preliminary contract with a notary public?
What elements should the preliminary contract contain? When is the preliminary contract terminated? What is the cost of preparing a preliminary contract with a notary public?
Preliminary agreement – basic elements
The conclusion of a preliminary contract guarantees the conclusion of a final contract in the future, the signing of which is not possible or convenient at the moment.
The document should contain elements such as the subject of sale and the price of the subject of sale. The preliminary agreement should also find a well-defined deadline by which the parties are obliged to conclude a contract and the right JPIC crib and date of payment of the price in the form of advance payment or deposit. In the absence of any of these elements, the preliminary contract is considered null and void
If within a year of the conclusion of the preliminary contract no date is set for the conclusion of the final contract, in accordance with the Act of April 23, 1964. (Civil Code) neither party has the right to request the conclusion of a final contract.
Preliminary agreement and mortgage
Banks want to have full control over what we spend their money on. Therefore, if you want to take out a mortgage for an apartment or house, you need to sign a preliminary contract.
When deciding to buy real estate, we always sign a preliminary contract, which may contain any arrangements between the parties. However, you must remember that the bank does not have to agree to all conditions.
The bank granting the loan may not accept the contractual provisions or impose other solutions, and this may have serious consequences such as loss of deposit.
Remember to consult a specimen preliminary contract with a credit counselor who will check whether the individual provisions and provisions will be accepted by the bank.
A preliminary agreement for the sale of real estate
The sale of a house or flat is usually preceded by a preliminary contract. The preliminary contract for the sale of real estate is designed to secure the interests of each party – the seller and buyer. The buyer is certain that the seller will not sell the property to anyone else, and the seller that he will receive compensation if the contract fails.
The preliminary sales contract should contain mandatory information such as details of both parties, including dates of birth, addresses and ID numbers. Regardless of whether it is a preliminary contract for the sale of an apartment or a house, the property must be precisely identified. Information on its location, nature, area, building status, and land and mortgage register number should be posted.
In addition, the preliminary contract for the sale of real estate should include the seller’s statement on the disposal of the real estate and other information regarding the ownership of the real estate, e.g. whether it is encumbered with a mortgage. If it is, a preliminary agreement should be signed for the sale of the apartment with a mortgage, specifying in detail the loan repayment rules.
The preliminary real estate sale and purchase agreement do not have to include the date of the conclusion of the final agreement. If the parties decide to specify it, the deadline should be exact and not specified.
A preliminary contract for the sale of the plot
When buying a plot, as in the case of buying a flat or a house, there is no need to sign a preliminary contract. Usually, however, this is a fairly large investment, so you should secure your own interest.
First, check whether the site offering the plot is fully entitled to do so. If the owner of the plot is married, we must additionally find out whether there is a seller’s property separation. Otherwise, both spouses must sign the act. If there are no inaccuracies, a preliminary contract for the sale of the plot can be signed.
A preliminary agreement for the purchase of real estate – what is worth knowing?
We often wonder what the form of the preliminary contract should be. The preliminary contract for the purchase of an apartment, house or plot, as opposed to the final contract of sale, maybe concluded in ordinary written form. The final sales contract must be concluded in the form of a notarial deed.
It is also good to know in what circumstances the preliminary contract is terminated. The preliminary contract shall cease to apply when it is terminated by both parties or one of the parties effectively withdraws from it. You should be aware that the expiry of the final contract does not result in the expiry of the preliminary contract.
How much is the preliminary contract with a notary public?
It will be safest if the preliminary contract for the sale of real estate is prepared by a notary public. Preparation of a preliminary contract by a notary public ensures that there will be no problems between the preliminary contract and the loan. The cost of preparing the preliminary agreement by a notary public is usually 50% of the notary bed would be charged from the contract target.