March 03, 2025
A purchase contract is a bilateral legal transaction. Under it
the seller undertakes to transfer the ownership of a certain thing or right to the buyer, and the buyer undertakes to pay the price. The essential elements of the purchase contract are the subject and the price. For the purchase and sale of real estate, the law prescribes the obligation of a written form.
Subject of the purchase contract
The subject of the purchase contract may be movable or immovable property. Also, rights can be subject of agreement. Real estate is land and everything that is permanently connected to the land (buildings). The purchase and sale of real estate is regulated by the Ownership and Other Property Rights Act and the Land Registry Act. Movable things are things that can be moved from place to place without damaging their essence.
Acquisition of real estate
The acquisition of ownership of real estate on the basis of a purchase or gift contract requires registration in the land register. After concluding the contract, it is necessary to submit an application for registration of ownership rights. This is submited to the competent land registry department of the municipal court. Registration is an entry by which book rights to real estate are acquired, transferred, limited or terminated. Ownership is acquired only by registration, and not by concluding the contract itself.
Overview of the land register
Before concluding a purchase contract, it is extremely important to inspect the land registry. The land register folio consists of an inventory sheet (A), a title deed (B) and a bill of lading (C). Sheet A contains a description of the property. Sheet B contains information about ownership, and sheet C contains information about encumbrances on the property. This inspection makes it possible to determine the beneficial owner and possible encumbrances on the property.
Sale of movable property
In the sale of movable property, contracts are in most cases concluded in oral form. The conclusion of the contract occurs at the time of agreement on the essential elements of the contract, the subject matter and the price. In the case of motor vehicles, the contract is usually concluded in writing. It is important to accurately describe the subject of sale, including the make, model, year of manufacture, chassis number and other relevant information. After concluding the contract, it is necessary to transfer ownership in the records of motor vehicles kept by technical inspection stations.
Earnest money
A down payment is a sum of money that the buyer gives to the seller as a sign that the contract has been concluded. In the event that the party who gave the down payment withdraws from the contract, he loses the down payment. If the party who received the down payment withdraws from the contract, he must return double the amount of the down payment. The down payment can also be arranged as a withdrawal fee, which gives the right to withdraw from the contract with the loss of the down payment. If the contract is performed, the down payment can be included in the fulfillment of the obligation, if it is expressly agreed.
Conclusion
Concluding a purchase contract, especially for real estate, is a complex legal transaction that requires careful consideration of all aspects. Hiring a lawyer when buying real estate provides professional assistance in reviewing land registers, drafting contracts and implementing registration, which significantly reduces the risk of possible legal problems in the future. Professional legal assistance is essential for the safe and legal purchase and sale of real estate.
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