Signing Provisional and Formal Agreement
Provisional Sale and Purchase Agreement
When you and the potential buyer agree on a negotiated price, both parties will enter into a provisional sale and purchase agreement. It is a legally binding contract that must be fully obeyed by the parties involved. If the formal sale and purchase agreement cannot be signed, the parties can rely on the provisional agreement to proceed with the deal or to sue for compensation.
The provisional agreement must include certain information such as the address and price of the flat, amount of initial and further deposit, when to sign the formal agreement, the completion day, etc. Access the link below for the usual items that must be included in a provisional agreement.
Formal Sale and Purchase Agreement
A formal sale and purchase agreement should be drafted by a solicitor based on the provisional agreement. It contains terms that are more detailed and is intended to replace the provisional agreement. You can include any special conditions you want as long as they do not violate any relevant ordinances or contradict the terms of the provisional sale and purchase agreement.