Find out what can not be missing in a property purchase and sale contract


Some clauses cannot be missing from a contract: details of those involved, description of the property, value and form of payment, mandatory delivery of the seller's documents, vacancy period, previous debts situation and sanctions in case of non-compliance with any of the agreements

As not everyone who buys or sells a property is a lawyer, many people do not know exactly what should be included in a contract that governs this type of transaction. The document must be well prepared, have clear clauses, leave no room for ambiguous readings and must be designed according to the particularities of each transaction.

 

The problem is that, in many cases, buyers and sellers resort to standard contracts made by real estate agents, which do not always address the needs of each party. “The contract is inseparable and complex. Each document must be unique, just as each property has its particularity. What counts for one cannot count for another,”explains lawyer Sérgio Corazza, a specialist in contract law at Corazza, Sebenelo e Mohr Advogados Associados, in Porto Alegre.

Corazza says that one of his clients signed a standard contract that did not stipulate the payment date. The buyer's financing took more than seven months to leave and, throughout that time, the seller was left without legal support, since no clause defined the buyer's obligations in the event of a delay. "In this case, it is worth a clause that provides for a late fee and, depending on the situation, even the return of the property or the revocation of the purchase", explains the lawyer.

Situations like this show the importance of making a well-designed contract, adjusted to the needs of the parties. But how do you know if a document fits that description? Below are some clauses that cannot be missing from a property purchase and sale agreement.

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Qualification of the parties

The contract must contain all personal data, both of the seller and the buyer. Name, marital status, nationality, profession, CPF, RG and full address of the residence.

Property description

The lawyer recommends that the description in the contract be identical to the one that appears on the property's registration at the Registry Office, which contains detailed information about the property and even the surrounding properties.

Value

In addition to the exact amount of the sale, the contract must detail the payment terms. If it is paid in installments, the due date of each installment must be stated. It is also important to indicate how the seller will receive - in cash or by check, bank transfer, etc. - so that payment is always made as agreed and this is duly recorded.

Documentation

It is also worth adding a clause that obliges the seller to present any and all documents that prove his suitability, in addition to papers that certify that the property is free and does not run the risk of being listed in lawsuits, such as inheritance and pledge.

Check out our list of: Document templates and various contracts

Vacancy

If the property is used and occupied, it is necessary to include a clause that sets the date on which the owner or tenants must leave it.

Debts

The contract must make it clear that any debt incurred prior to handing over the keys is the seller's sole responsibility.

Penal clause

This is one of the most important clauses in the contract, as it defines the obligations of each party in case any clause is breached. It must also stipulate the amounts to be paid if this happens.

 

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