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What Is A Pre Sale Agreement

Posted by on October 14, 2021

A pre-sale contract – for which you will find a template on this portuguese-language website – is legally binding in order to guarantee the rights of the contracting parties and thus protect the persons involved in the sale until the moment they sign the actual deed of sale of the property. It is very common for there to be some value in the promissy note contract, namely the deposit known as the “sinal” in Portuguese. This is a sum of money or other asset agreed between the parties that the buyer must pay to the seller. This deposit is a guarantee of compliance with the pre-sale contract and is also proof of the seriousness of the contractual intention of both parties. In order to avoid unpleasant surprises, Doutor Finanças also recommends including a termination or termination clause in the contract, which should describe how and in what period the contract must be terminated. Buying a new home is as special and exciting as it is complex and frustrating. For everything to go well, there is nothing better than being properly informed. It is very important that you have a clear idea of several concepts associated with buying a house in Portugal, and one of them concerns the so-called presale contract, known in Portuguese as Contrato de Promessa de Compra e Venda or CPCV. It is an extremely useful tool for those who sell property in Portugal, and also the weapon that best protects property buyers. Here we look at what CPCV is, what are its advantages and disadvantages and how it affects real estate transactions in Portugal. Unlike the previous provisions, however, the pre-sale purchase contract remains registered in the land register only for a period of 6 months from the expiry of the period set by the parties for the conclusion of the purchase contract, after which the registration in the land register can be revoked.

These are some of the most important external emergency factors to consider when drafting a preliminary purchase agreement before the final public title deed. There are some exceptions to the rule that it is not possible to force parties to sell or buy property in Jersey. For example, under family law, a spouse may be required by the Marriage Division of the Royal Court to enter into a contract. It is also possible for one party to force the other to enter into a share transfer transaction in order to enter into a formal or informal agreement. It is therefore very important to mark all discussions and correspondence as “contractually present” before signing a written agreement. This rule also applies if the parties to a sale agree to enter into a preliminary purchase agreement or a pre-sale contract. Accordingly, an essential feature of a pre-contractual sales contract is an agreed set-off clause that provides for the payment of significant financial compensation to the other party in the event that one party refuses to conclude the contract. Damages payable under such a clause should be set at a level designed to encourage each party not to default and are generally set at one quarter of the sale price.

The period of 6 months from the date of expiry of the period set by the parties for the conclusion of the purchase contract is the period during which the buyer of the promission note may request the competent court to rule on the conclusion of the contract if all the conditions of validity are met, this period being that of forfeiture. .

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