Promise to Sell Agreement

As it is also understood from name, “Agreement for Promise to Sell Real Estate” refers to the commitment that a real estate will be sold at a later period. Details on the sales to be made in the next period are included in this contract. The sales price is among these details. Promise to sell agreement becomes completely official with the approval of the notary. The situation of the deed is confirmed by the land registry official with the annotation to be made by the parties to the contract.

As in all types of contracts, promise to sell agreement has various obligations for parties. However, there is no single party to claim rights regarding the promise to sell agreement. For example; the buyer cannot act alone and ensure the sale. Both parties must absolutely participate in the transaction for sale of the immovable subject to the contract for sale of immovable property.

Validity of Promise to Sell Agreement

As with many contract types, there are certain validity principles in the promise to sell agreement. In order for agreement to be valid, the primary rule is that the agreement has to be arranged at a notary. Agreements that are not prepared before at a notary but certified by a notary will not have any legal validity. Another issue that will ensure the validity of the agreement is that agreement contains detailed clauses about the sales price. If the immovable in the agreement is to be paid in partial payments, the installment information should be included in the agreement.

Also: Real Estate Law

Promise to sell agreements that do not meet certain conditions are not binding for both parties. The assigment of the promise to sell agreement becomes complicated, especially when there is a stakeholder in heritage. However, there is no invalidity in this case. One of the stakeholders of the heritage can sign a promise to sell agreement to sell immovable for part which on their share. Procedural mistakes made as a result of such complex cases can lead to loss of the case. Therefore, working with lawyers who are experienced in real estate law will prevent you from suffering at the end of the case.

Termination of Agreement

One of the most important features that validate the promise to sell agreement of immovable sale is the signing of the agreement before at a notary. The cancellation of the promise to sell agreement must be done in the presence of a notary, just as it was signed. Another situation that will validate the termination of the promise to sell agreement is the timeout. The expiration period of the mentioned agreement corresponds to 10 years.

In this agreement, where a promise about immovable property will be fulfilled, the possibility of cancellation arises when the promise is not fulfilled. In an agreement where one of the parties does not fulfill their obligations, the right of termination of the other party may arise. Deed cancellation and registration lawsuits may be filed for party who promises a sale and does not fulfill this promise within the time specified in the contract.

Stamp duty rate is one of the issues that those who want to sign a promise to sell agreement. The stamp duty on promise to sell agreement has been applied as 0 per thousand for a while since the applications that encourage the construction sector are more frequently applied by the governement. Although it was allocated as 9.48 per thousand before implementation, stamp duty is not charged for this agreement anymore.

You can contact Marhan Law Office for professional support about real estate law or contract processes in this field.