What is a promise to purchase contract?

Find out what a promise to purchase/sale contract is and why it is important to consider it when buying your new home.

Buying a house is complicated and, therefore, must be done very carefully to avoid the risk of fraud and misunderstandings between the two parties. For this reason, the correct and most effective way to do it is to make sure that the whole process is carried out legally.

One of the first steps in this regard is to make a promise to purchase. However, if you are not sure what it is and what it should contain, we will reveal all the details about it so that nothing happens to you.

What is a promise to purchase contract?

The contract of sale of a house is a legal agreement signed before a notary public by the buyer and the seller of a property. It establishes the buyer’s intention to purchase the property within a certain period.

This secures the sale and guarantees that the merchandise will be removed from the market so that it will not be offered to third parties. It is also used to establish a price and other conditions of sale that the seller cannot change in the future.

Data required in a promise to purchase

For the promise of a purchase contract to be legal, it must be in writing and approved by a notary. It must also contain the following information:

• Personal data of the buyer and seller: full name, address, and marital status. If the owner of the property is married with shared property, the details of the spouse are also required.
• The date on which the sales contract is concluded.
• Details of the property: address, an extension of work, type of property, cadastral data, and cadastre.
• If one of the parties is an elderly person, a medical study may be required to support his or her mental health.
• Depending on the case, the buyer may be required to provide a pre-approval document for the mortgage loan.

Provisions of a promise to purchase contract

The terms of a home pledge should set forth the terms under which both parties have agreed to enter into a definitive sales contract in the future. For the contract to be complete and valid, the following clauses must be included:

As you can see, the promise of purchase and sale can be very useful if you are thinking of investing in real estate in the short term.