A contract of sale It is a formal agreement that a buyer has with a seller to cover the sale and the respective transfer of properties and other assets. In most countries, sales contracts are governed by a Commercial Code.
International sales contracts are stipulated in the UN Convention on Contracts for the International Sale of Goods, also known as the Vienna Sales Convention..
When looking to buy a property, it is valuable to understand what a contract of sale is, its effect and the role it plays in this type of arrangement. By understanding the legal aspect of buying a property, you will reduce the risk of getting into a lawsuit, as well as the trance of a long and expensive litigation..
If a property has ever been bought or sold, a contract of sale has probably already been signed, usually prepared by a competent lawyer. Within this contract, the terms and conditions that the buyer and seller have agreed upon are clearly established..
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The main characteristics of a sales contract are:
The contract is legally enforceable. The parties must enter into the agreement voluntarily, making the contract a promise, which involves a legal act where there is some form of compensation.
It establishes the agreement between a seller to sell and a buyer to buy at an agreed price. Therefore, it generates obligations as well as rights for both parties..
It is usually commutative, since the benefits are determined and are certain when the contract is executed.
It can be simple and contain little information, or it can be detailed with much clearer information about the agreement, such as the quantity of goods, the price, the delivery date, the anticipated deposits, etc..
The contract is a voluntary agreement between the parties. Those parties must be legally competent to enter into the binding agreement..
It is a formal contract for real estate and consensual for furniture. For furniture, no formality is needed to validate the act, since the different ways of expressing the will are accepted within the express and tacit consent.
For real estate, the contract must always be in writing, so that there are no later contradictions, although this document can be private or public, depending on the principal amount. It exists as such by itself, since it does not obey another contract.
When the buyer pays cash for the property or obtains a loan from a third party, the contract between the seller and the buyer could be a purchase contract. If the seller allows the buyer to pay for his purchase over a period of time, a sales contract is entered into.
It is vital before signing the contract to ensure that you read the document carefully. Ask as many questions as possible to clarify the points. Verify details such as names, addresses, and the amount of money to be exchanged.
The legal terms and conditions should also be consulted, making sure to understand everything related, since a commitment is generated.
- Names of the seller and buyer.
- Attorney details.
- Agent details.
- Property address.
- Property title certificate.
The items involved in the transaction must be clearly mentioned in the contract. All types of goods, except services, can be considered for the contract.
The total cost of the property will be written in the contract. The deposit amount along with the payment date will be written below this amount, just like any other money that has already been paid.
The balance due in the payment will also be agreed, so that the buyer knows the amount to be paid at the time of disbursement. The buyer should be asked for some type of deposit at the time of signing the contract, because this is a sign of the authenticity and commitment of the buyer to buy the property.
Define when ownership will be transferred from seller to buyer. On this date, the buyer's credit institution will transfer the money from the property and collect the seller's title deed..
Once the agreement is finalized, the agent will be notified that you were selling the property. Then the buyer will be contacted to inform him that he can now collect the keys to the property.
If the property is to be paid for by loan, this will be stipulated in the contract. Details will include the loan amount, approval date, and possibly the lender's details.
They refer to any clause that may affect the sale of the property, such as the approval of a loan or the prior sale of another property.
In most cases, if there are conditions, they will be listed as "subject to", indicating that the sale of the property will not take place unless these conditions are met..
The property will be sold once the buyer and seller have exchanged and signed the contract. It is important to know exactly what is being signed, as the contract will be legally binding from the moment it is signed.
Real estate sale contract model (Word)
Property sale contract model (PDF)
In this contract, one of the parties is called the seller, who is offering the property as such, and the other party is called the buyer, who is the one who has to give the agreed amount of money..
The contract is used to mainly agree on a price for the purchase of the property, in addition to the agreed conditions with which the sale will take place..
This type of contract turns out to be one of the most important for the family or home economy, since the purchase price is usually high, and the derivations from it have an important legal and legal effect.
Due to the notableness of the real estate that is being sold, this contract that transfers this asset must comply with all the legal precepts..
Model vehicle sale contract (Word)
Vehicle sales contract model (PDF)
This is the name of the document that both parties sign to transmit ownership of a vehicle from one company or person to another..
This contract shows the sales agreement between the parties, respecting the provisions of the laws of each country. This agreement specifies the automotive asset, in addition to its characteristics, to sign it..
It is very important to sign the document in order to avoid problems that may arise with the vehicle in the future. With this contract, both parties are protected, one against the other, if for any circumstance a claim has to be made for the breach of what was signed.
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