If the purchase contract will be signed after a longer period of time, or if the property is being financed by a mortgage loan, a pre-purchase contract is required as well. The Pre-Purchase Agreement determines the terms of the transaction, the purchase price, the date of signature of the purchase agreement, and detailed information about the property and all parties involved.
Contracts are usually linked as follows:
- Reservation agreement.
- Future Purchase Agreement (if applicable).
- Purchase contract.
- Contract for the custody of funds. (custody of the purchase price).
- Mortgage contract (as regards mortgage liability).
- Contract for early repayment of the mortgage (if the seller has a mortgage loan).
The purchase contract contains:
- Payment of the purchase price: how much, when and how it will be paid.
- Subject of the purchase contract: detailed information of the property and what it includes.
- Whether the property is in the joint property of the spouses.
- Date of handing over the property.
- Who will pay the custody of the purchase price.
- And more.
- The real estate broker will arrange and pay for the reservation contract within the commission.
- The real estate agent will arrange and pay for the preparation of the pre-purchese contract as part of the commission.
- The real estate broker will arrange and pay for the purchase contract as part of the commission.
- The real estate broker will secure and pay the contract for the custody of the purchase price within the commission.