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What should be written in a preliminary purchase contract?

What should be written in a preliminary purchase contract

The compromise, also known as a “preliminary contract,” is crucial in real estate negotiations, bridging informal discussions to the finalization of the purchase agreement. It serves to bind the parties to the ultimate signing, ensuring they do not back out. Its format can be a private document, even without a notary. The text details its role and the necessary requirements.

Firstly, it explains that the compromise does not transfer ownership but binds the parties to the future agreement before a notary. Failure to comply can lead to legal action, where the resolution of the preliminary contract or the transfer of property through a court order can be requested. The reasons for entering into a preliminary contract are listed, including defining crucial aspects of the agreement and the ability to delay the final signing.

The procedure for concluding a compromise involves written drafting, which can be registered within 30 days, and possible registration in the real estate registers. Examples are provided of legal situations in which registration can be decisive.

The essential requirements of the preliminary contract include information about the parties involved, the description of the property, the price, payment terms, and delivery deadlines. Practical advice is offered on completing the contract, emphasizing the importance of attaching the necessary documentation.

The Cassation establishes that, for the validity of the preliminary contract, a detailed indication of all elements of the future contract is not necessary, but agreement on the fundamental components is essential. It is specified that the property must be determined or determinable, suggesting the documentation required to demonstrate ownership rights and administrative regularity.

Finally, it deals with the indication of the deadline for the conclusion of the final contract. In the absence of a provision, recourse can be made to the judge to set a date, but if the parties do not act, the right to conclude the final contract expires after 10 years due to prescription.

VGS Lawyers is an Italian law firm specialised in real estate. Should you need assistance in buying a property in Italy please contact info@vgslawyers.com

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