What is the purchase agreement

What is a provisional purchase agreement?

A provisional purchase agreement, also known as a deed of sale or initial purchase agreement, is a legal document that sets out the main agreements on the purchase of a property. It confirms the buying intention of both parties and is usually valid before the final purchase agreement is drafted and signed. A preliminary sales contract helps define the price, purchase conditions, and any resolutive conditions.

How is a purchase agreement drawn up?

When drafting a purchase agreement, it is essential to clarify the sale details, such as the identity of the buyer and seller, the property, and any conditions or resolutive conditions. The contract is usually drafted by the seller or an estate agent to ensure that it meets legal requirements and protects both parties' interests.

A thorough purchase agreement is crucial to avoid problems or misunderstandings about the terms of the sale. It is wise to seek professional advice from a notary when drafting a purchase contract so that all important issues are included and you can be sure the contract is legally conclusive. Understanding notary costs upfront will help you budget appropriately.

The 3-day cooling-off period

On the day of signing, you legally have 3 days of reflection time. The cooling-off period starts at 00:00 that night and weekends and public holidays do not count. For example, if you sign on a Thursday, your cooling-off period ends at 23:59 on the following Tuesday. If you decide to abandon the transaction within that time, there will be no financial consequences.

Completing the provisional purchase agreement

Completing a provisional purchase agreement is the first step in the purchase process. This is the moment when the legal responsibility of the property is officially transferred from the seller to the buyer. The process starts with the exchange of contracts between the parties and ends with the final transfer at the notary.

It is essential to work closely with your estate agent, legal advisor, and notary to ensure that everything goes smoothly.

Roles and Responsibilities in the preliminary purchase agreement

In the preliminary purchase agreement, the seller, buyer, and estate agent each have unique roles and responsibilities:

• The seller is responsible for providing all necessary documentation and information about the property
• The buyer is responsible for verifying the information and arranging financing
• The broker plays an intermediary role between the parties and ensures that the interests of both the buyer and seller are protected

Understanding the preliminary purchase agreement

The preliminary purchase agreement can be a complex document to understand, especially if you are not familiar with legal terminology. It is important to take the time to fully read and understand the contract before proceeding.

Importance of the preliminary purchase agreement

The preliminary purchase agreement is an essential document in the home-buying process. It lays down the essential details of the sale, such as the purchase price, the transfer process, and any special conditions or restrictions. It also protects the buyer and seller by ensuring that both parties comply with their obligations.

Terms and conditions

Termination conditions are conditions that both the buyer and the seller agree to and include at the end of the sale. If none of the parties do not meet these conditions, the contract can be dissolved. Carefully reviewing these terms will help prevent future disputes about the offer made.

Examples of resolutive conditions

1. Reservation of financing: If the buyer cannot get financing in the end, the contract can be dissolved free of charge.
2. Reservation of housing permits: In some cases, a housing permit is required. If this is not obtained, the buyer can dissolve the contract.
3. Reservation of National Mortgage Guarantee: If the buyer wants to take out a mortgage guarantee and this is not possible, the contract can be dissolved.