A real estate sales contract is a binding legal document that outlines the terms of the sale and purchase of real estate between two parties. This contract contains a set of basic elements that guarantee the rights of each party and protect their interests. In this article. We will detail the basic elements that a real estate sales contract should include:
1. Definition of the parties:
- Full names: The full names of both the buyer and seller must be provided.
- Nationality: Determine the nationality of each party.
- Identity numbers: Write down the ID numbers of both parties accurately.
- Address: Provide the exact addresses of each party.
2. Description of the property:
- Exact location: Determine the exact location of the property, including country, city, region, and street.
- Area: Identify the total area of the property in detail (land, buildings, utilities).
- Boundaries: Define the exact boundaries of the property, indicating any natural or artificial features.
- Other descriptions: A detailed description of the property, including the type of property (residential, commercial, industrial), construction materials, age, general condition, and available utilities.
3. Sale price:
- Lump sum: Determine the total amount agreed upon for the sale of the property.
- Payment method: Specify the method of payment, whether it’s cash, certified check, or bank transfer.
- Payment schedule: If paying in installments, a clear payment schedule with payment dates and values must be specified.
- Guarantees: Identify any guarantees provided by the buyer, such as bank guarantees.
4. Payment terms:
- Payment dates: Specify the deadlines for installment payments, if any.
- Collateral: Identify any collateral, such as a mortgage.
5. Seller’s guarantees:
- Ownership: The seller warrants that he is the rightful owner of the property and that he is authorized to sell it.
- The property is free from defects: The seller warrants that the property is free from any hidden or visible defects that affect its use value.
- No third-party rights: The seller guarantees that there are no third-party rights on the property, such as a mortgage or lien.
6. Delivery of the property:
- Delivery date: The deadline for handing over the property to the buyer.
- Required documents: Identify the documents that the seller must provide to the buyer upon delivery, such as the title deed and keys.
- Delivery condition: Specify the condition the property should be in at the time of delivery, whether furnished or unfurnished.
7. Government fees:
- Distribution of burdens: Determine who bears the burden of government fees, such as registration fees and real estate transaction fees.
8. Taxes:
- Type of tax: Specify the type of tax applicable to the transaction, such as VAT.
- The amount of tax: Determine the amount of tax due on the transaction.
- Payment method: Specify the method of payment of the tax.
9. Penal terms:
- Cases of breach: Identify the situations in which a party is considered to be in breach of its obligations.
- Value: The amount of compensation to be paid by the infringing party.
10. Arbitration:
- Selection of the arbitrator: Specify the mechanism for selecting the arbitrator or arbitration tribunal to resolve any dispute arising from the contract.
- Arbitration rules: Identify the rules and procedures that govern the arbitration process.
11. Force majeure:
- Define force majeure: Define what events are considered force majeure, such as wars and natural disasters.
- The effects of force majeure: Determine the effect of the occurrence of force majeure on the performance of the contract.
12. Other conditions:
- Additional conditions: Any other terms agreed upon by the parties can be added, such as a non-assignment clause.
Important note:
- Legal advice: It is essential to consult a lawyer who specializes in real estate to draft a comprehensive real estate sales contract that protects the rights of all parties.
- Notarization: It is preferable to have the contract notarized by a lawyer.
- Constant updating: The terms of the contract should be reviewed periodically to ensure that they are in compliance with applicable legislation and laws.
In conclusion, a real estate sales contract is an important legal document that requires great care when drafting it. The contract should be comprehensive and clear, covering all aspects related to the real estate transaction.
