The difference between a pre-sale contract and a contract for the sale of real estate

The pre-sale contract of the real estate and the contract are two important legal documents that are used in the process of buying and selling real estate. Although often used synonymous, they have different purposes and elements. In this article, we will explore what is a pre-saless contract and a contract, what are their elements and what is the main difference.

The pre-sale contract is a legal document that is used as the first stage in the process of buying and selling real estate. It is a preliminary agreement between the seller and the buyer, which creates obligations for both parties and establishes the basic terms of the future real estate purchase agreement. The pre-sale contract often has less formality compared to the contract, but still has a legally binding character.

The elements of a real estate pre-sale contract can vary, but common elements include:

Identification of parties: The pre-sale contract should clearly state the names and addresses of the seller and the buyer.

Property description: The property being sold should be described, including address, size, type and all essential features.

Price and terms of payment: The pre-sale contract should specify the agreed price of the property and the method of payment, as well as any other conditions agreed between the parties.

Deadlines: Deadlines for fulfilling obligations from the preliminary contract should be determined, such as deadlines for signing the final contract or paying the deposit.

Disclaimer: The pre-sale contract may contain provisions that release the seller from liability in the event of certain events, such as damage to the property.

Legal status of the property: The pre-sale contract may contain provisions that require the seller to provide certain information about the legal aspects of the property, such as encumbrances, mortgages or other restrictions.

In contrast, the real estate sales contract is a legally binding document that is signed after the pre-sales contract and establishes the details and all conditions of the sale. The contract is usually much more extensive than the pre-sale contract and precisely regulates the rights and obligations of both parties.

Elements of a real estate purchase contract include:

All elements of the pre-sale contract: The contract usually contains all the elements of the pre-sale contract, such as identification of the parties, description of the property, price and terms of payment, deadlines and legal status of the property.

Detailed description of rights and obligations: The contract regulates in detail the rights and obligations of the seller and the buyer in connection with the sale of real estate, such as the obligation to transfer ownership, payment of the purchase price, responsibility for property maintenance, etc.

Terms for terminating the contract: The contract may contain provisions that set out the conditions under which the contract can be terminated, such as failure to comply with certain obligations or a change in circumstances.

Notarization: A contract for the purchase and sale of real estate often requires notarization in order to recognize the legal significance and avoid later disputes.

The main difference between the pre-sale contract (preliminary agreement on the purchase and sale of real estate) and the contract is in their legal force and scope. A pre-sale contract is a preliminary agreement that creates a legally binding relationship between the seller and the buyer, but usually does not contain all the details and terms of a contract. The contract is a binding document that precisely regulates all aspects of the purchase and sale of real estate and has strong legal force.

It is important to note that these concepts and elements of pre-sale contracts and real estate sales contracts are generally valid, but there may be differences in the legal system of different countries. It is always advisable to consult a real estate professional or legal advisor before signing any legal documents.

Magazin, 25. May. 2023.