For most people, buying a property is the largest single transaction of their life — and it is precisely before the preliminary agreement is signed that the most expensive mistakes are made.
Check the land registry
The first step is always a land registry extract. It shows who the actual owner is, whether there are registered encumbrances (mortgages, pending entries, litigation notes) and whether the factual situation matches what is registered. If the seller is not the registered owner, do not sign until ownership is resolved.
The deposit and its consequences
The deposit is not a formality: if the buyer withdraws, they normally forfeit it, and if the seller withdraws, they must return double the amount. The deposit amount and withdrawal terms therefore deserve careful drafting, not a template.
A notarised preliminary agreement
Notarised signatures and clearly defined deadlines for payment, handover and registration protect both parties. Particular attention should be paid to the clausula intabulandi — the statement by which the seller permits registration of the buyer’s ownership.
This article is for information only and does not constitute legal advice. Contact us to discuss your specific case.
Frequently asked questions
- How large is the usual deposit in a real estate purchase?
- In practice the deposit is most often agreed at 10% of the purchase price, but the law does not prescribe an amount — the parties set it freely by contract.
- Is a preliminary agreement mandatory?
- No. A preliminary agreement is concluded when the main contract cannot yet be signed for some reason (e.g. awaiting a loan or registration issues) and the parties want to commit.
- Who pays the real estate transfer tax?
- The 3% real estate transfer tax is paid by the buyer, unless VAT applies to the transaction. The notary public reports the tax liability upon certification of signatures.
