Nasza grupa
O nas Kontakt Forum Praca Blog Zaloguj się Rejestracja PL EN
Twoja sugestia

Otrzymuj co tydzień wartościowe porady i informacje od PolishProperty.eu

Polecane oferty

499 000 PLN

szastarka wieś

290.00 m2

7 900 000 PLN

Wrocław

719.00 m2

Why is it worth to conclude a preliminary real property sales agreement?


English

2013-06-20

A preliminary real property sales agreement is a type of agreement where the parties contract an obligation to enter into a particular final real property sales arrangement. The Buyer enjoys the guarantee that the owner of the property will not sell it to any other third party. The Seller, on the other hand, is entitled to monetary damages, if the final agreement is not concluded.

 

Essential terms

The particulars concerning the conclusion of the preliminary sales agreement are governed by the Polish Civil Code. It defines a preliminary sales agreement as the one in which the parties enter into an obligation of concluding the final agreement. The preliminary sales agreement is effective if it defines the essential terms of the final agreement. Information concerning those essential terms are defined by the Polish Civil Code. In a nutshell, the preliminary sales agreement shell state that the Seller contracts an obligation to transfer his ownership rights to the subject matter (real property) and to deliver it to the Buyer; the latter contracts an obligation to receive and pay for the subject matter. Thus, the subject matter and the price are the crucial terms. It means that a preliminary sales agreement that lacks the above mentioned terms shell be considered ineffective.

 

Moreover, the preliminary sales agreement shell describe also: parties to the agreement, Seller’s ownership rights, the real property (including its location and the Land and Mortgage Register No.), dates and payments (single payment or installments), date of the conclusion of the final agreement, and the amount of the deposit payment (if the Buyer fails to perform the terms of the agreement, the Seller keeps the deposit money; if the situation is reversed, the Buyer in entitled to monetary damages in the amount of two deposit payments).

 

Type of agreement, default, and indemnity

A preliminary sales agreement may bear the form of a written instrument or, as in the case of the final agreement, notarial deed. However, in the case of a preliminary real property sales agreement, it is recommended to have it concluded at Notary’s office. There is a number of reasons why. First and foremost, if one party is reluctant to enter into the final agreement, the other party is entitled to conclude the final agreement even against the party’s will.

 

In this case, a lawful decision of court substitutes the declaration of will of the reluctant party, and the conclusion of the target sales agreement is final. If a preliminary sales agreement is a written instrument, the parties are not entitled to set up a claim for the conclusion of a final agreement in court.

 

Establishing a deposit as the main guarantee of the proper performance of the terms of agreement is a common practice. If the Buyer is responsible for the lack of conclusion of the final agreement, the Seller may withdraw form the agreement and keep the deposit. If the parties established any additional contractual penalty (in most cases they do), the Seller may also expect the payment of it.

 

In the case of not entering into the final agreement because of the Seller’s fault, the Buyer -- having made the deposit payment -- is entitled to the damages in the amount of two deposit payments. The Buyer may also claim the payment of any contractual penalty established in the agreement. Any claims resulting from the preliminary sales agreement fall under the statute of limitations after a year from the date when the final agreement was to be entered into. If a claim to conclude the final agreement is dismissed in court, any other claims resulting from the preliminary sales agreement fall under the statute of limitations after the year from the day when the court’s decision became effective.

 

Cost of the conclusion of a preliminary sales agreement

It is definitely more expensive to conclude a preliminary sales agreement in the form of a notarial deed, because of the obligation to pay a notarial fee. On the other hand, it seems to be little a price for strengthening our belief that the terms of the agreement will be properly performed by the other party. It is also worth mentioning that upon the conclusion of a preliminary sales agreement, the parties do not pay the tax on the civil law transactions, because there ownership rights are not disposed of or transferred within. The aforementioned tax shell be paid, when the parties enter into the final agreement.

 

So, why should we conclude the preliminary sales agreement?

A preliminary sales agreement serves as the guarantee for both parties, that the final transaction will be performed. In the case of the real property sales, the Seller knows that his property will be sold, and the Buyer is confident that no other third party will “steal” his dream apartment by purchasing it before.

 

If the purchase of the apartment will be financed by the external sources (which usually happens in the case of a real property), the Buyer has enough time to make any arrangements and fulfill all the formalities in the bank. And finally, both parties are entitled to damages, if the other party shell withdraw form entering into the final agreement.

 

Jakub Jastrzębski

 

 

 

 

Dobry artykuł? Zostaw komentarz i podziel się ze znajomymi.

329 000 PLN

Kraków

44.00 m2

3 400 000 PLN

Ziębice

1000.00 m2

2 790 000 PLN

Gdynia

118.00 m2

3 800 000 PLN

Szczecin - Chojna - Rurka

250000.00 m2

Dotpay

Dotacje na innowacje
Program Operacyjny - Innowacyjna Gospodarka
Działanie 8.2 Wspieranie wdrażania elektronicznego biznesu typu B2B

Tytuł: Optymalizacja współpracy pomiędzy POLISHPROPERTY.EU MARGOL ROMUALD a Partnerami biznesowymi w efekcie wdrożenia systemu B2B w ramach którego działać będzie aplikacja online dostępna na urządzenia mobilne. Projekty współfinansowane ze środków Europejskiego Funduszu Rozwoju Regionalnego w ramach Programu Operacyjnego Innowacyjna Gospodarka

Koniecznie przeczytaj

Mortgage loan and apartment for foreign student

Where to go to get a mortgage and purchase an apartment? Not only Polish people ask themselves this question. Many foreigners who continue living in our country, who come ...

Czytaj dalej »