Theory
REAL PROPERTY SALES TRANSACTIONS
Real property
Real property plays an important role in every legal system because it is limited in number. Real property includes land and anything built on the land. In most countries special regulations apply the sale of agricultural land..
Acquiring ownership title
Property may be acquired in various ways The most common method is sale and purchase. Based on the sales contract, the seller is obligated to transfer the title of ownership in exchange for the purchase price.
Selecting the property
The buyer must exercise care is selecting the property to be acquired. Buyers may choose the property on their own or may engage a real estate broker. The seller of the property usually pays agency fee for the services of the broker.
Making the property sales contract
Once the property has been chosen, the parties have to agree on all conditions. The terms of the agreement are then recorded in the real property sales contract. The contract usually has to be countersigned by a lawyer or a public officer.
The process of transferring the title
The buyer usually does not pay the full amount of the purchase price when the contract is signed, only a smaller amount to secure the sale transaction. In this case, the ownership is reserved until the full purchase price has been paid. While the title is reserved, the buyer may not sell or make other decisions concerning the property. After that, the buyer obtains the purchasing funds and pays the balance of the purchase price. If the buyer does not pay the purchase price by the agreed date, the seller may withdraw from the contract.
Delivery of the property
After the full amount of the purchase price has been paid, the seller has to give the property in the buyer's possession and inform the buyer of all material conditions of the property, the rights and encumbrances in respect of the property. Furthermore, the seller is has to give all documents relating to such facts and circumstances to the buyer. At this point, the parties make arrangements for the payment of the costs. Seller will pay utility and other costs calculated until the delivery date. After the delivery, all costs and expenses must be paid by the buyer.
Purchase price
The parties may usually determine the purchase price without any restriction. The purchase price may be paid in different ways, by bank transfer or, eventually, in cash. The buyer may also take a loan for purchasing the property. In this case, this must be indicated in the sales contract.
Legal costs
The buyer has to pay all costs arising in relation to the sales contract and the registration of ownership of the real property.
