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Preliminary sales agreement uncovered



Apartment purchase is usually connected with some stressful formalities. The buyer may be forced to face a number of difficulties, each of which may be easily avoided. Conclusion of the preliminary sales agreement is one of the most crucial steps to your own apartment.


It doesn't matter if you decide on the purchase of an apartment form the primary or the secondary market – you will have to fill in and draft specific documents. This is how you start a loan-granting procedure, which the vast majority of buyers has to go through. Well-prepared preliminary sales agreement or a developer agreement may guarantee the safety of your future transactions. So, what factors shell we bear in mind upon the signature of such an important document?


Different types of agreement

Preliminary sales agreement serves as an obligation to conclude the final agreement, which transfers the ownership title to the buyer. It should include the following information:


• subject matter: apartment, total area, address;

• date of conclusion of the final agreement;

• price;

• land and mortgage register number of the property.


Conclusion of the preliminary sales agreement is indispensible if the buyer is planning on taking a loan for the purchase of the property. This agreement may take form of:


• civil law agreement;

• notary deed.


A common civil-law agreement seems to be less complicated and has its advantages, as it does not incur any notary-related costs. However, it does not secure the transaction as a notary deed does. If the seller decides to withdraw from the contract, we can only expect the payment of damages. That is why if we really want to purchase a particular property, it is worth to enter into a preliminary sales agreement in the form of a notary deed. In the case of seller's withdrawal from our arrangements, we can still claim the conclusion of the final agreement in court.


How to draw up a preliminary sales agreement?

The Internet is full of examples you can base your agreement on. On the other hand, it seems that the purchase of a property is too important a matter to draw up documents based on the information from the Internet. The best solution is the assistance of a legal advisor. Every transaction is different and requires a specific attitude and, first and foremost, knowledge.


Developer agreement

The first step to purchase of a property form the primary market is the conclusion of a developer agreement. It is a counterpart of a preliminary sales agreement and grants the buyer the title to the particular property. In 2012 a new act in law was enacted and in accordance with this act an agreement with the developer must be made in the form of a notary deed in order to guarantee the safety of transaction for the buyer. This document also specifies the price of the property which cannot be changed in the final agreement.


It's just the beginning

A preliminary sales agreement is one step in the journey to your own apartment. After its conclusion, the buyer will face a number of formalities and obligations. At each step of this journey, however, it is important to take care of our own safety and use the assistance of experts. If your first important document is drawn up correctly, and the loan-granting procedure is completed, your next step is the conclusion of a final agreement. 





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