Secure Trade Agreement of Home Purchase: What to Know?

There are many tips how to choose a new home. However, when you find your dream house, it is also very important to remember what the key-aspects are to pay attention to and how to ensure that the contract would be executed as safely as possible and the interests of both buyer and seller would be protected.

Secure Trade Agreement of Home Purchase
Secure Trade Agreement of Home Purchase

Preliminary Purchase Contract

When buying a home, independently or with intermediaries, it is very important to enter into a preliminary purchase agreement correctly and carefully. The buyer must sign a contract with the seller in writing form. Such a contract must be duly agreed and signed by all parties. It is important to note that if the property is owned by several persons, all property owners must sign a preliminary contract, or the authorized person must have obtained notarial powers from all property owners. Unfortunately, it is not possible to find a professionally prepared template of the preliminary contract that would be freely available online, so it is recommended to hire a professional real estate agency or lawyers.

The buyer must find out if he is dealing with a legitimate owner of the property or with an authorized person. The power of attorney must be certified by a notary. It means that it must be stamped, approved by a notarial register number, and the notary who issued the power of attorney must be mentioned. The buyer may call the notary office to clarify whether such a power of attorney has been granted to a particular person. In certain cases, the power of attorney may also be granted to a broker. The broker should provide such power of attorney to the buyer. If the power of attorney is not notarial, such order to sign a preliminary contract or any other kind of contract is invalid.

Proof of Ownership

Before concluding any contracts, the buyer must require the seller or the representative to provide the original documents that could prove the ownership of the property. Such documents are issued by the national Center of Registers or other institution. It can be any kind of document proving the right of ownership, for example, purchase-sale agreement, inheritance contract, etc. In the document issued by the Center of Registers, the buyer can ascertain whether the specific property is sold, pledged, or otherwise encumbered, whether any third parties have the rights of ownership to that property, are there any other legal restrictions related to the property. It is very important to pay attention to the date of issue of such documents. This kind of documents should be as new as possible, preferably, they should be issued on the day of the conclusion of the contract.

Proof of Ownership
Proof of Ownership

Payment

Any payments related to the property must be made only between the buyer and the seller. In some cases, money may be deposited in the account of a notary or representative, but this must be clearly stated in the preliminary contract and such procedure must be confirmed in writing by both parties. The preliminary agreement and the sale-purchase contract must clearly state all the information related to the money transactions: terms, amounts, form of payment, and the account to which the payment is made, etc. Until all parties are properly identified and have signed the contract, the buyer should not make any transactions.

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