What is a Promise-Sale Contract, What are its Conditions?
A promise to sell contract is prepared in order to formally undertake that a real estate will be bought and sold at a future date. In the real estate promise contract, the buyer party will receive that property on the date specified in the contract and with the declared price; the selling party confirms that it will make the sale under these conditions. The real estate sales promise contract, which guarantees the title deed transfer to be realized in the future with an official document, is a preliminary contract. The transfer of title is carried out in accordance with the date and conditions specified in the contract.
What are the Conditions of the Real Estate Preliminary Sales Contract?
The promise of sale contract drawn up by the real estate owner and the buyer does not become legally valid until it is notarized. For the promise of sale contract to have official validity, it must be issued by a notary public. An annotation can be made on the title deed to prevent the preparation of the same contract with third parties. The annotation written on the title deed has a validity period of 5 years. If real estate is not bought and sold within 5 years, the contract will be cancelled. Unless annotation is made on the title deed, the real estate sales promise contract will be valid for 10 years.
The promise to sell contract creates obligations for both parties. For this reason, it is not possible to realize the sale only with the request of the buyer on the date specified in the contract. Both parties must be present in the deed transfer process. The property to be sold must also be title deed. Contracts are not drawn up for real estate without title deed. However, the person who will make the sale is not required to have the title deed of the property at the time of signing the contract. It is sufficient to have received the title deed of the real estate by the date of deed transfer specified in the contract.
What Information Should Be Included in the Promise-Sales Contract?
The information that should be included in the preliminary sales contract and the issues to be considered are as follows;
- The contract should include the names, surnames and open addresses of the parties.
- As notifications can be sent to the addresses specified in the contract, addresses must be specified completely.
- The sale price of the real estate to be sold, the method by which the payment will be made and the interest rate to be applied in case of delay in payment by installments should also be specified.
In addition, it should be decided which party will pay the costs such as title deed fees and revolving funds in the title deed transfer process. If one of the parties so desires, an article regarding the compensation or penal conditions to be applied in case of withdrawal can be added to the contract. Information about which court and enforcement office to apply for the resolution of disputes that may arise between the parties is also included in the contract.
