Questions? A preliminary sales contract may be concluded in the form of a notarial deed not only when the situation calls for it due to bank requirements when getting a loan or the lack of neccessary documents at the most inconvenient time.
A preliminary contract regulates vital provisions of a future final contract that will de-facto transfer ownership of real estate, a situation which allows both sides to appear at the decisive meeting with the comfort of foreknowledge and preparedness to deal with the finer points of the transaction. The notary will analyze the legal environment of the real estate and explain in detail issues that are often not given their due attention. Good examples are: the difference between an in earnest payment and an advance payment, the difference between a storage room attached to an apartment and one that has a separate entry in the land and mortgage register or for instance the differentiation between various types of rights to real estate – often intentionally omitted in the primary market.
When prepared by a notary, a preliminary contract is assured to be in accordance with current law and wishes of both sides, it’s form helps if a party should try to evade fulfilling it by allowing the possibility of enforcing before an appropriate court even without a court presence of the party at fault. A unique quality, in polish law, of the preliminary contract is the creation of an obligation to go through with the final contract which can be enforced in court.
The notary can motion to publish an obligation arising from a preliminary contract in the land and mortgage register. This action allows potential interested parties to learn of a transaction in progress which helps significantly in preventing, amongst others, the fraud of selling the same property to multiple buyers An appropriately created entry allows the mentioned entitled party to have valid claims against the current owner of the property if such a sale were to take place.
Perhaps the most notable benefit of concluding a preliminary contract at a notarial office is the ability to obtain answers to problematic questions and bothersome discrepancies before decidedly putting pen to paper.