When financing a property purchase with a mortgage, you need to submit several documents to the bank. One of the most important is the purchase contract. In this document, the seller agrees to transfer ownership of the subject of the sale to the buyer. In the case of real estate sales, this is most often a plot of land, an apartment or a family house. The buyer, in turn, undertakes in the contract to pay the seller the agreed purchase price.
Particulars of the purchase contract
In every real estate purchase contract, the parties to the contract must be identified. Both the seller and the buyer shall state their name, surname, birth number and permanent address. If the property is sold by a business, its identification number must also be stated.
It is also necessary to determine the exact object of the transfer, i.e. the description of the property in question. In this part of the purchase contract, be careful of errors and various inconsistencies. In this case, the Cadastral Office may reject the application for registration and not transfer the property to the new owner. In the best case, the transfer of the property will be prolonged, in the worst case, the payment of the purchase price by the buyer may be jeopardised.
The purchase contract must also specify the price for the transfer of the property, the method of payment of the purchase price (e.g. from own funds, by means of a mortgage loan) and the deadline for payment of the purchase price.
Leave the drafting of the purchase contract to the experts
A written contract with officially certified signatures is required for the sale of real estate. Although you can draw up the purchase contract yourself, it is worth leaving it to a professional – a lawyer or notary. This will avoid possible future problems (e.g. omission of third party rights).
Before signing the contract, it is necessary to verify that all legal relations have been resolved. The property may be subject to, for example, pre-emption rights or various easements. The purchase contract must be signed by authorised persons, including the buyer, the seller or a third party with the power of attorney of the property owner. The property does not pass to the new owner at the moment of signing the purchase contract, but only after it has been registered in the Land Registry.