The Most Important Step in Buying Real Estate

7-Point Sales Promise Agreement

The Most Important Step in Buying Real Estate. Real estate purchase and sale procedures are generally containing high-value and complex legal processes. This process is requiring the provision of trust and legal guarantees between the parties. A preliminary sales contract is being signed. It protects the obligations and rights of the parties. It is signed before a final agreement is being made. This contract is carrying the quality of a preliminary contract. It brings the obligation to sell or purchase the real estate in the future. In this article, the legal nature of a preliminary contract is addressed. How and where it must be made is explained. The importance of placing a restriction on the title deed is covered. The legal risks of this contract for the parties are addressed in detail.

1. What is a Preliminary Real Estate Sales Contract?

A preliminary sales contract contains the parties’ mutual declarations. It is for a future real estate sale. This contract legally guarantees their commitments. It is valid until the title deed transfer is completed. The contract does not transfer ownership by itself. It only contains a promise that ownership will be transferred later.

2. The Validity of the Contract: The Formal Requirement and the Role of the Notary

For a preliminary real estate sales contract to be legally valid, it is required for the official formal conditions that are foreseen in the law to be complied with.

• Notary Obligation: According to the Turkish Code of Obligations, it is mandatory for a preliminary real estate sales contract to be drawn up in the presence of a notary. A contract that has not been made in the presence of a notary is being accepted as legally invalid and is not imposing any right or obligation on the parties.
• The Role of the Notary: The notary is ensuring that the contract is being prepared in a way that is in compliance with legal conditions, is verifying the identities of the parties, and is giving an official quality to the contract.

3. The Placing of a Restriction on the Title Deed Registry and Legal Protection

The placing of a “restriction” on the title deed registry for a preliminary real estate sales contract is ensuring the most important legal protection for the buyer.

• The Meaning of a Restriction: A restriction is meaning that the preliminary sales contract is being processed into the title deed record. This procedure is ensuring that the contract can also be put forward against third persons.
• The Consequences of a Restriction: When a restriction is being placed, in the case of the immovable property being attached due to the seller’s debts or being sold to another person, the rights of the buyer are being protected. When a preliminary sales contract is being made without a restriction being placed on the title deed, the contract is only binding the parties.

4. The Termination of the Contract and the End of Obligations

A preliminary real estate sales contract can be terminated for various reasons.

• Mutual Will: The contract can be terminated with the common decision of the parties. The termination procedure must also be done in the presence of a notary.
• Legal Reasons: In the case of the performance of the contract becoming impossible (for example, the real estate burning down) or one of the parties not fulfilling their obligation (for example, the buyer not making a payment), the contract can be terminated with legal ways.

5. The Statute of Limitations

The rights arising from a preliminary real estate sales contract are subject to a certain statute of limitations.

• The Statute of Limitations: The rights arising from the contract must be used within five years from the date on which the contract must be performed. In the case of a lawsuit not being filed within this period, the right is being time-barred and is being lost.
• Legal Consequences: With the expiration of the statute of limitations, the buyer or seller is losing the right to request the performance of the contract.

6. Legal Remedies in the Case of Non-performance of the Contract

In the case of one of the parties to the contract not fulfilling their commitment, the other party’s right to apply to legal ways is arising.

• A lawsuit for contract performance is filed. It’s filed by the person promised the real estate. The court first finds the contract is valid. It also confirms that conditions for performance have occurred. It then orders the title deed to be registered. The registration is in the plaintiff’s name.
• A compensation lawsuit can be filed. This is to redress the damage suffered. The damage is due to the non-performance of a contract.

7. The Importance of Legal Support and Counseling

Preliminary real estate sales contracts are complex documents that are containing legal details. For this reason, legal support being taken from a lawyer is of vital importance.

• The Preparation of the Contract: The preparation of the contract in a way that is in compliance with all legal conditions and the prevention of possible risks are being ensured by a lawyer.
• Risk Analysis: Before the contract is being signed, the title deed record of the real estate must be examined and possible mortgage or attachment situations must be detected.
• The Follow-up of the Process: The follow-up of the notary approval and the restriction on the title deed procedures of the contract is being done with the guidance of a lawyer.

The Most Important Step in Buying Real Estate. A preliminary real estate sales contract is a critical document. It provides a legal guarantee to the parties. For the contract to be valid, it must be notarized. A restriction must be placed on the title deed. This protects the buyer’s rights. The contract binds the parties to a future procedure. Therefore, its conditions must be examined carefully. Legal support should be taken to prevent possible risks.