In the case of a real estate purchase and sale, a detailed and multi-faceted analysis should be made of the documents concerning the real estate, the sellers, the financing and all other parameters related to the transaction itself, including the penalties, the rights and obligations of the parties arising from the signed documents, as well as the preliminary contract, etc. The preliminary contract is a key stage of the transaction as it sets out the main terms of the sale and purchase, including the terms, price and obligations of the parties, while providing certainty until the final deed is executed.
When buying real estate, legal issues may arise in the field of property law and not only, such as issues related to ownership, right of use, encumbrances on the property (such as mortgages or foreclosures), as well as various regulations concerning construction, taxes and fees. In addition, careful review of financing terms from banks and other lending institutions is often required, as well as negotiations with counterparties to the transaction to clarify any terms and conditions that may have a significant impact on the buyer’s rights and obligations.
For these reasons, it is extremely important that you consult with a lawyer who can provide you with professional assistance with the real estate purchase transaction itself. An attorney will ensure that all legal aspects are well covered, protect you from potential risks, and help you make informed decisions at every step of the process. In addition, attorney assistance is essential in drafting and reviewing the purchase and sale agreement, as well as representing you before the notary and other parties in the transaction.
Documents concerning the real estate
Depending on the transaction itself and the real estate you will be buying, different documents are required and analyzed. Most often these are previous ownership documents, e.g. deeds, cadastral schemes and sketches, certificate of encumbrances, tax assessment certificate, construction documents (e.g. building permits, occupancy permit / certificate of commissioning, etc.), certificate of identity of address, certificate of restitution claims, etc. The real estate documents should also be consistent with the stage of construction at which the real estate is being purchased.
Documents concerning sellers
An important part of the purchase of real estate is the provision of certain documents by the sellers. Most often these are a certificate of heirs, a certificate of marital status, a certificate of the presence or absence of debts to the NRA, a certificate of the presence or absence of pending enforcement cases with private bailiffs (CSI) and state bailiffs (SJ), etc.
Preliminary contract for the purchase and sale of real estate
The preliminary contract is not binding for the conclusion of a final contract for the purchase and sale of real estate. The preliminary contract shall be drawn up in writing between the parties and shall protect their interests until the conclusion of the final contract for the purchase and sale of the immovable property. The preliminary contract agrees on the parameters of the transaction – the sale price of the property, the manner and terms of payment of the price, the time limit for concluding the final contract, the transfer of possession, penalties and any other rights and obligations of the parties. Pursuant to Article 19, para. 19(3) of the Law on Obligations and Contracts (LAC), either party to the preliminary contract may bring an action for the conclusion of the final contract. In such a case, the contract shall be deemed to have been concluded at the time when the judgment enters into legal force.
Conclusion of a final contract for the purchase and sale of real estate (notarial deed)
At the previously agreed date and time, the parties shall appear before a notary public to execute a final contract for the purchase and sale of the real estate. The final contract shall be concluded in the form of a notarial deed. An important clause in the deed is the clause in case of eviction. When purchasing real estate, the relevant local taxes and fees are paid, which vary from city to city. Notary fees are also payable based on the material interest. The deed is immediately sent to the relevant office of the Registry Office for registration.
The lawyers of Concordia Law Firm are available to answer any inquiries by phone +359 878583010, e-mail, or through the contact form, as well as for comprehensive assistance in connection with the purchase and sale of real estate.
