It is rare that the required amount of money is in full hands and it takes time to collect it. And to ensure that the property does not go to another buyer, a preliminary agreement is concluded with the condition of paying part of the amount.
In what situations is it concluded and for how long?
In accordance with Art. 429 of the Civil Code of the Russian Federation, such an agreement defines the conditions for the transfer of property that serves as the subject of the main transaction.
A deposit is used as a security measure and this is fixed in the preliminary contract.
The point is that:
- the buyer gives the seller money in the amount determined by the agreement as a guarantee;
- the seller is confident that the deal will be concluded;
- the buyer is not afraid that the apartment will be sold within the specified period.
In accordance with Art. 381 clause 2 in case of failure to fulfill the agreement of one of the parties:
| Who gave the deposit | It stays with the seller |
| received | The buyer gets a double refund |
An agreement with an advance payment can be concluded for any period that suits the parties. After its expiration, the main contract must be concluded on the conditions that were fixed in the preliminary one.
Sample preliminary agreement for the purchase and sale of an apartment with a deposit
The following must be indicated:
- sides;
- subject, with a specification of the apartment and a description of what will be transferred as a result of the conclusion of the contract (household appliances, furniture, etc.);
- price;
- method of payment and circumstances after which final payment will be made. This occurs after registration of ownership;
- the amount of the deposit paid;
- responsibility;
- details and signatures.
DOWNLOADSample preliminary agreement for the purchase and sale of an apartment with a deposit
Features of compilation
It is necessary not only to indicate the location of the apartment, but also the signs that will allow it to be identified. This information is in the cadastral passport. The amount to be paid is indicated. Without a fixed price, the seller can change it upward.
By law, the contract is concluded in the form established for the main one (Article 429 of the Civil Code of the Russian Federation). This means that it must be written. The law determines that failure to comply with this makes the agreement void.
If the parties have agreed verbally, then obligations do not arise from this agreement. An oral agreement cannot be used as evidence in court.
How is the deposit negotiated?
In practice, the buyer leaves an amount equal to 5-10% of the price. All this should be written down in the contract.
This may be stipulated in the preliminary agreement. The law also allows for the signing of a separate deposit agreement. The money, according to the law, goes towards a future payment.
Liability for the termination of a transaction by one of the parties can be established both in accordance with the Civil Code and by agreement of the parties.
Receipt for advance payment
This document confirms the very fact of receiving a specific amount of money that was agreed upon in the deposit agreement. It is an integral part of the contract.
It is written by the person who received the money and confirms this action. Drawed up in one copy at the time of transfer of funds. The document is handed over to the person who made the advance.
DOWNLOAD Receipt form for receipt of advance payment
The best option is to write the receipt entirely by hand. Sometimes realtors offer to enter data into a ready-made template to save time.
In this case, it is necessary to enter the following information in your own hand:
- the object for which a deposit is being made, indicating the details of the apartment, allowing it to be clearly identified;
- size (in numbers and words);
- day, month, year of compilation.
If, when selling an apartment, the buyer communicates with a realtor, then you need to make sure of his authority. Check his documents and, since he acts on the basis of a power of attorney, it should indicate his right to receive funds.
The original receipt must be kept, since in any controversial situation the court will consider only it. No copies or duplicates are valid.
What are the most common mistakes made when concluding a contract?
The most common mistake is the lack of specification of the subject of the transaction. The absence of a price in this agreement jeopardizes the interests of the buyer, since the seller may raise it.
Situations where the mortgage has not been confirmed occur quite often. In this case, the preliminary agreement will be terminated due to the fault of the buyer and, therefore, the seller has the right not to return the deposit. But the contract can include a clause stating that if confirmation of the mortgage is refused, the contract will be considered terminated due to the fault of third parties. And in this case, the funds are returned.
Preliminary agreement for the purchase and sale of an apartment with a deposit
The result of the successful completion of a real estate purchase and sale transaction is the signing of an agreement by the parties. But in some cases it is recommended to conclude a preliminary agreement in order to protect the buyer and seller from possible refusal of the purchase.
A preliminary agreement allows both parties to consolidate verbal agreements and subsequently be confident that the terms of the transaction will not change. As a rule, within the framework of this document, a deposit is transferred - part of the amount of the cost of the apartment.
Sample and form of an apartment purchase and sale agreement
2023 sample
- A preliminary agreement for the purchase or sale of an apartment, a sample with a deposit and a receipt, can be downloaded below from the link.
Download the preliminary agreement for the purchase and sale of an apartment with a deposit (form).- Download a sample deposit for the purchase and sale of an apartment.
How to fill out a purchase and sale agreement correctly?
The preliminary agreement for the purchase and sale of real estate is drawn up in writing in two copies, one for each party. It must specify the characteristics of the housing being sold and all the conditions that will subsequently be transferred to the main contract, including the price of the apartment.
The essence of the agreement pursues the following goals:
- documenting oral points regarding the terms of the transaction;
- establishing the amount of the cost of the apartment, which as a result must be transferred to the seller;
- determination of the period for concluding the main transaction agreement.
Therefore, all points must be recorded in the preliminary agreement. A deposit is one of the ways to guarantee the purchase and sale of an apartment. Usually its amount is within 5-10 percent of the total price of the apartment; it must be specified in the preliminary agreement and is an advance taken into account in the final payment.
In addition to the agreement, a receipt for receipt of funds is drawn up in the form of an appendix. However, it cannot be a separate document. A receipt without an additional agreement is not valid.
Download a sample receipt for receiving money for an apartment
Nuances when filling out
If the parties have agreed to transfer the deposit, then this condition must be specified in the preliminary agreement. According to paragraph 4 of Art. 380 Civil Code, its amount will be included in the price of the main contract.
Refusal to complete a transaction entails the effect of clause 2 of Art. 381 Civil Code, when:
- the seller retains a deposit if the buyer cancels the transaction;
- The buyer receives a double amount of the deposit if the seller cancels the deal.
These points must be reflected in the preliminary agreement. In this case, the buyer has the right to secure the receipt of not only a double amount of the deposit, but also a fine in a certain amount if the transaction was disrupted due to the fault of the seller.
Mandatory details of the document are also:
- information about the parties to the transaction indicating information in accordance with the passports. It is permissible to fill out not only your passport details and registration address, but also your actual residence address and contact numbers;
- subject of the agreement - an apartment with its exact characteristics based on official documents, which will subsequently be the subject of the main contract;
- the price of housing is fully specified in the preliminary contract;
- information about the title documents on the basis of which the apartment belongs to the seller, as well as information about the extract from the Unified State Register of Real Estate. It is recommended to check the seller’s details with these documents, and also pay attention to encumbrances and liens that may be placed on the apartment. Such information can be seen in the extracts from the Unified State Register section;
- rights and obligations of the parties, indicating the deadlines for their fulfillment. This, first of all, concerns the procedure for transferring the apartment in order to avoid a situation where the seller delays them. The preliminary agreement may establish fines in case of failure to fulfill the obligations of either party;
- the period for concluding the main agreement, fixing a specific date or period during which the main agreement can be signed by the parties. Any period can be set by agreement between the parties to the transaction. In its absence, the Civil Code in paragraph 4 of Art. 429 obliges the parties to conclude the main agreement within one year from the date of signing the preliminary one.
Features of concluding a preliminary agreement for the purchase and sale of an apartment with a deposit
In addition to the main points of the transaction, which must be specified in the preliminary agreement, the parties have the right to introduce other conditions. As a result, the document will not lose its legal force, and the parties to the transaction can be sure that the clarifications that are important to them will be fulfilled. If they fail to comply, they can go to court and claim them by decision of a judicial authority.
Such clarifications may include:
- punitive measures for violation of the terms of the contract;
- deadline for vacating the apartment by the seller;
- a description of the condition of the apartment at the time of drawing up the preliminary contract and the requirement to transfer it in the same form within the framework of the main contract (for example, the parties agreed that the price of the apartment also includes built-in furniture and appliances);
- the requirement that housing is transferred in proper condition and without arrears in payments and taxes;
- other conditions.
Please note that the parties have the right to agree on the transfer of funds without drawing up a preliminary agreement. But this option is designed solely for trust between the seller and the buyer. In case of refusal of the transaction, the parties may lose the advance and will not be able to reclaim it.
Sample preliminary agreement for the purchase and sale of an apartment with a deposit
Home » Documents » Sample preliminary agreement for the purchase and sale of an apartment with a deposit
The process of purchasing a home is quite complex and often takes a lot of time. However, if the buyer has a great desire to purchase a specific apartment, but is not able to pay the entire amount for it right away, he can leave a deposit.
This practice occurs quite often, because it is beneficial for both parties. Such a deposit must necessarily be based on a preliminary agreement. Full information about this agreement is found in Article 249 of the Civil Code of the Russian Federation.
Standard sample of a preliminary agreement for the purchase and sale of an apartment with a deposit
First of all, it should be said that the preliminary agreement is drawn up in exactly the same way as the main sales agreement. This means that this document has the same legal force, and is also subject to all legal requirements.
The preliminary agreement itself must indicate the following:
- Information about the buyer and seller, according to their passports;
- A clear description of the subject of the transaction. That is, a description of the apartment, its address and other features, if any;
- Statement of the main essence of the transaction;
- Date of the transaction;
- The exact date of preparation and signing of the document.
We can say that such a document officially confirms the intentions of both parties for a purchase and sale transaction in the future. Most often, this is used in cases where it is currently impossible to complete a transaction for one reason or another.
In addition to the contract, another guarantee is most often used - a deposit. The deposit is a tenth of the total amount to be paid by the buyer. The presence of a deposit must be stated in the preliminary agreement as evidence of the transfer of funds.
In addition to specifying the payment of the deposit in the contract, you can draw up a separate document. It represents an act of transfer of funds, which indicates the exact amount, date of transfer, as well as confirmation of the transaction by both parties.
It is important to understand that the seller does not have to return the deposit if the buyer subsequently cancels the purchase. On the other hand, if the refusal comes from the seller, he must compensate the buyer’s costs twice as much.
Essential conditions of the preliminary agreement for the purchase and sale of an apartment with a deposit
The preliminary agreement must necessarily describe the subject of the agreement, the price for it, as well as detailed information regarding the persons who appear in this transaction. Having read this information, the two parties sign the agreement, thereby committing themselves to fulfill it in the future.
It is important to indicate the date when the main transaction will be concluded. In this case, the seller will not have to wait forever. Most often a specific date is indicated, but a month can also be specified. In this case, the buyer will be obliged to purchase the apartment at any time during the specified month.
Despite their similarity, advance payment and deposit are very different from each other. In the case of an advance payment, the buyer pays part of the amount of money as a guarantee. But at the same time, if the deal falls through due to the fault of any of the parties, the deposit will be returned. This scheme is rarely practiced, because in fact you can simply return the money and the contract will be terminated.
Sample deposit agreement for the purchase of a house with a plot of land.
Read about a sample purchase and sale agreement for a garden plot here.
A deposit is the most common prepayment scheme, which most often suits both parties. When registering a deposit, each party cannot terminate the contract without loss.
If the transaction is terminated due to the fault of the buyer (he refuses or does not pay the principal amount within the specified period), then the deposit remains with the seller.
In the event that the seller breaks the deal, he must pay compensation, which will be double the amount of the deposit.
Based on the above, we can say that collateral is a more reliable option, which acts as a kind of insurance for both parties at once.
It is important to understand that when concluding a preliminary agreement with a legal entity, it is very important to indicate the full name of the representative of the legal entity if the agreement is signed by an authorized person (representative).
Features of concluding a preliminary agreement for the purchase and sale of an apartment with a deposit
It is not uncommon that after concluding a contract, participants are faced with problems that they could not have imagined before. More often this happens to buyers, because they are the ones who risk losing money and falling for scammers.
In order to avoid problems, the preliminary agreement should describe the following points:
Basic
- The capacity and legal capacity of the seller. That is, you should make sure that the seller is the owner, and was also in full health and really wants to enter into an agreement of his own free will. To confirm this later, witnesses are most often invited;
- Lack of other owners of the property. There are often cases when residents are discharged from an apartment for a while, but at the same time they do not lose the right to it. The buyer should definitely make sure that there are no such people;
- A description of the full cost of the apartment, as well as the amount of the deposit that the buyer pays.
- Passport details of representatives of both parties. In practice, a situation is considered normal when the parties can independently verify the accuracy of the data or even photograph each other’s passports.
Additional
- Costs of concluding a contract;
- Payment of duties;
- Any other details that either party wishes to include. It is important that the other party agrees with them, and also that they do not contradict the law.
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- Deposit under the preliminary purchase and sale agreement
- Is it possible to include a deposit clause in the preliminary contract for the purchase and sale of real estate?
- Deposit is a sum of money given by one of the contracting parties against payments due from it under the contract to the other party, as proof of the conclusion of the contract and to ensure its execution (Article 380 of the Civil Code of the Russian Federation)
- If the seller who received the deposit refuses to fulfill his obligations, he will be obliged to pay the buyer double the amount of the deposit.
Deposit under a preliminary agreement. Now and before
Securing obligations under a preliminary agreement with a deposit is not prohibited.
Sample preliminary agreement for the purchase and sale of an apartment with a mortgage in 2023: nuances of drafting, form
Each of us sooner or later becomes a counterparty - a participant in a housing purchase and sale transaction. But there are situations when the transaction cannot be completed immediately: the seller has not collected the package of required documents, the buyer does not have enough money. The first one is afraid that a good buyer will leave. The second is afraid that the seller will sell the apartment to another person or raise the price.
This is where a preliminary purchase and sale agreement comes in handy, which will give time to resolve all problems and will be a guarantee:
- In selling an apartment and receiving money for it for the selling party;
- In handing over the keys and obtaining ownership of the apartment for the buyer.
Moreover, if to purchase an apartment you have to borrow the missing amount from some bank, they will require you to draw up a preliminary agreement for the purchase and sale of the apartment under a mortgage.
What is a preliminary agreement
A preliminary agreement or agreement of intent is a kind of receipt, a written agreement between the owner of the apartment and the person who liked it, about the intention of the first to sell and the intention of the second to buy it. This kind of document is like a draft of the main contract, the first step towards completing a purchase and sale transaction. It is also the first document for the bank to approve a mortgage.
Why do you need a preliminary agreement?
| To the seller | To the buyer |
| Additional insurance before the main transaction, confidence that it will definitely take place. | |
| Fraud Prevention | |
| Apartment sale guarantee | Fixing an exact price that cannot be changed |
| Apartment purchase guarantee |
Why does a bank need a preliminary agreement?
Banks providing mortgages evaluate the preliminary agreement:
- As confirmation of the seriousness of the client’s intentions and a guarantee that the transaction for which the mortgage loan is issued will definitely take place.
- As a document that provides specific information according to which you can accurately evaluate the apartment you are buying.
- As proof that the apartment is clean from the point of view of the law, not seized, not mortgaged, or encumbered with anything else.
Legislation
In the Civil Code of the Russian Federation, Article 429 is devoted to the preliminary agreement. The paragraphs of this article state that:
- The main obligation of the selling and buying parties is the conclusion of the main agreement after a certain period of time;
- If one of the parties to the contract violates the prescribed obligations and does not want to formalize the main contract, the second party has the right to go to court (clause 4 of Article 445 of the Civil Code of the Russian Federation).
Form
The preliminary agreement is similar in structure to the main one and is drawn up in writing. It can be designed:
- In simple written form, with signatures of both parties, without any seals;
- With signatures certified by a notary.
Both options are legally valid. The main thing is that in any of the options the conditions under which the apartment is sold/purchased are specified: price, characteristics, who should do what, by when, etc. and so on. Otherwise, the agreement may be declared invalid on the grounds that not everything was stipulated in it.
Form, sample filling
The preliminary agreement form can always be found on the website of the borrower bank or on legal websites. Consultation on filling it out can be obtained free of charge from a notary or from the manager of the bank where the mortgage is issued.
Samples of completed forms are posted on work stands and folders of financial institutions and in the consulting rooms of lawyers. But the best version of the completed preliminary purchase and sale agreement will be made at the bank that provides the loan.
How to correctly draw up a preliminary purchase and sale agreement (conditions, essential points, mandatory clauses)
The contract is drawn up in two copies: one for the seller, one for the buyer. Both copies are equal. Each one has two signatures - the seller and the buyer. Each copy of the preliminary agreement begins to have legal force immediately after signing.
To avoid controversial issues and refusal to conclude the main transaction, before putting their signatures, both parties must understand what and why information is written in each section, paragraph, line.
A cap
The name of the preliminary agreement should reflect its essence, for example, that housing is purchased using a bank loan. Therefore, the document should be called: “Preliminary agreement for the purchase and sale of an apartment under a mortgage.”
Look at the same topic: Mortgage refinancing at DeltaCredit Bank [y]
Dates and validity period
The first date, usually written immediately under the heading, is the date the agreement was drawn up and signed. This is where the countdown of the contract begins.
The second date that is written in the document is the day or deadline for the main transaction. If the parties cannot specify this date, the conclusion of the main purchase and sale agreement must occur within a year from the date of the first date. If both parties did not have time to prepare for the transaction on the appointed date, they can agree with each other and set a new date.
Such leniency is possible if purchasing an apartment does not present financial difficulties for the buyer. In the contract for the purchase and sale of an apartment under a mortgage, the date of conclusion of the main transaction is always indicated and cannot be postponed. Otherwise, the bank will refuse the buyer a mortgage loan and will add it to the list of unreliable clients.
Termination of the preliminary agreement
Termination of any contract, including a preliminary one, occurs:
- By mutual agreement of the parties;
- If it is formatted incorrectly;
- If the parties to the contract fail to fulfill their obligations. In this case, there is no talk about a mortgage loan and trust.
Information about the seller and buyer
The mandatory requirements for specifying personal data in the contract are the same for both counterparties.
This:
- Full Name;
- Citizenship;
- Floor;
- Year of birth;
- Passport number and series, by whom and when issued;
- Registration at residential address.
If there are several sellers/buyers - an apartment is being sold/buyed, for example, by spouses - personal data must be indicated in sequential order for each.
If one of the parties is represented by another person (third party) by power of attorney, the preliminary purchase and sale agreement indicates the details of the power of attorney certified by a notary.
Object information
The object or subject of the purchase and sale agreement is the apartment that the buyer is going to buy from the seller using a mortgage. The more information provided about the apartment, the more accurate its assessment will be and the more reliable the chance of receiving approval for the amount of the requested loan.
The contract must indicate:
1. House type:
- Apartment;
- Low-rise;
- Country;
- The year it was built.
2.Location and characteristics of the object:
- The exact address indicating the locality, district, region, street, house and apartment numbers;
- The floor where the apartment is located and the number of floors of the building;
- Common/living area;
- Number of rooms (meters, shares).
3. Condition of the object (repair, without repair, what is the state of communications) with an inventory of items, furniture that are transferred to the buyer.
4. No encumbrances:
- The apartment is not under arrest, there is no claim, no court decision;
- There is no mortgage on the apartment, the apartment is not pledged;
- There is no rent registered for the apartment;
- The apartment is not rented or leased.
Title documents
The preliminary agreement must indicate the series, number and date of receipt of the document confirming the seller’s right to dispose of the apartment. This:
- Certificate of state registration of rights.
- An extract from the Unified State Register of Real Estate (USRN), which can be obtained through the MFC (Multifunctional Center) by any citizen of the Russian Federation. The main advantage of the extract is the relevance of information about the owner (owners), encumbrances, and all transactions with the apartment or its share.
There are no title documents - the transaction will not take place. The extract from the Unified State Register of Real Estate alerted me - there is no point in concluding a preliminary agreement.
Number of residents (registered) and timing of their discharge
It’s good when there is only one owner of the apartment and no one but him lives in the apartment. This phenomenon is rare. Before concluding a preliminary agreement, you should ask the seller to provide:
- Certificate Form 9, which indicates all persons registered in the apartment.
- Certificate Form 12, which indicates all persons discharged from the apartment without their presence (in prison, disappeared, etc.), in order to avoid unpleasant surprises after the purchase.
- The contract must indicate the period of time (term) during which everyone registered will check out and vacate the apartment.
Price, deposit, advance
The main point of the preliminary agreement, which pleases the buyer, is the fixed price for the apartment, which is not subject to change. A deposit may be transferred to the seller as part of the cost of the apartment. This amount is not only stated in the contract, but also formalized as a promissory note. And the contract document states that if the main purchase and sale transaction fails:
- Due to the fault of the seller, the seller will return the received deposit to the buyer in double amount;
- Due to the fault of the buyer, the deposit remains with the seller.
An advance payment can also be made as the first payment. It is not necessary to draw up an additional agreement for it; the advance amount is simply indicated in the corresponding line of the preliminary agreement. The advance payment is returned to the buyer upon request. And if the seller fails to comply with the mandatory conditions, the amount of the refundable advance, unlike the deposit, does not increase.
The balance of the agreed apartment price is paid after receiving the mortgage. The conditions for final settlement with the seller and acquisition of ownership of the apartment by the buyer are also specified in the contract. The document and everything written in it, the signatures of the seller and the buyer, are certified.
And here we need attention
| No. | Error when concluding a contract | What to pay attention to so that there are no errors |
| 1. | Did not check the consistency of the last name (first name, patronymic) | The last name, first name, and patronymic indicated in the contract must correspond to the last name, first name, and patronymic indicated in the passport and title documents. An error in the spelling of a name or lack of reference to the reason for changing the surname can serve as a compelling argument for terminating the preliminary agreement. |
| 2. | They did not specify whether there are utility debts | The apartment being purchased should not have debts on rent and utility bills. Such a certificate is provided by the accounting department of the management company. If there are large debts, their amount is stated in the contract as an offset to the cost of payment. Otherwise, the debts will have to be paid to the buyer after the transaction is completed. |
| 3. | Permanently registered persons remained in the apartment | Non-owners who are permanently registered in the apartment have the right to unlimited use of the residential premises. They may not be discharged while the preliminary agreement is in effect. In this situation, before concluding the main contract, you need to receive a notarized letter from those registered that they know about the sale and undertake to sign out within the specified period. |
| 4. | Shared ownership was not taken into account - other owners appeared - applicants for the purchase. | 1. The apartment belongs to several owners (common shared ownership). For example, a room in a communal apartment, or half of the apartment belongs to a former spouse. The deal will take place when other owners waive their pre-emptive right to buy out their neighbor's share. It is advisable to have the refusal certified by a notary. In advance, each applicant must be sent a postal notification (with acknowledgment of delivery) that the room (share) will be sold. 2. The apartment belongs to several owners (joint shared ownership). For example, an apartment was purchased under the state program for assistance to large families. In this case, disposal is possible only by all owners at the same time. All owners are listed in the contract as sellers. |
| 5. | We entered into a preliminary contract for a new building | The developer and, therefore, the buyer cannot conclude a preliminary agreement for the purchase and sale of an apartment in a new building. This form of agreement between them cannot exist under the law. You can buy housing in a new building:
Banks working with accredited construction companies take part in drawing up an agreement for the purchase of an apartment using a mortgage. Such a document still applies to the DDU. Its design will consist of three steps:
|
Conclusion of the main deal
All obligations of the preliminary agreement, including the clauses included at the request of the bank, were fulfilled by the parties. The deadline for purchasing an apartment with a mortgage is approaching.
And the bank is provided, along with the preliminary agreement and the papers attached to it (title documents, appraiser’s report, refusal of purchase by other owners, promissory note), an extract from the current account confirming that the buyer has the amount for the down payment.
The terms and method of issuing a mortgage are established, the mortgage loan is signed, and the main purchase and sale agreement is drawn up. And here’s the result: the seller gets his money, and the buyer gets the apartment. The purpose of the preliminary agreement is completed.
A preliminary agreement for the purchase and sale of an apartment with a mortgage is a calm opportunity to prepare for the sale/purchase of a home, weigh your strengths and complete the transaction without disputes, disagreements and unpleasant surprises. Banks value such clients and will always help them in drawing up a preliminary agreement competently, taking into account all the nuances, with agreed terms for obtaining a mortgage and subsequent payments.
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Preliminary purchase and sale agreement with deposit sample form
The purchase/sale of high-value material assets usually involves the preparation of a large amount of documentation about the transaction.
You may encounter a problem that at the moment there is not enough money on hand or all the necessary paperwork has not been completed. Therefore some delay is necessary.
This time can be spent by the buyer/seller searching for new, more profitable options.
In order to prevent such an incident from happening, you need to do two things:
- Conclude a preliminary purchase/sale agreement.
- Make a deposit for the property being purchased/sold.
The essence and meaning of earnest money
It is generally accepted among ordinary citizens that the amount of the deposit is approximately equal to one tenth of the property. This money is paid by buyers as part of the principal amount of the purchase.
If the buyer refuses to complete the transaction, the money remains with the previous owner of the property. If the refusal occurs on the part of the seller, he is obliged to pay double the amount of the deposit. This principle is not legal.
The laws provide for a different procedure for making a deposit upon purchase. It begins with the signing of a preliminary agreement. It will need to indicate the amount of the deposit and explain that this money is a paid part of the cost of the property. That is, upon final settlement the price should be reduced by this amount.
Contents of the preliminary agreement
This document is in simple written form. Its task is to describe all the conditions of the transaction and the consequences.
Among the mandatory attributes of such a document are:
- date of signing;
- contract number;
- name of the city where the purchase takes place;
- signatures of the parties to the transaction;
- availability of original seals (for legal entities).
The introductory part provides information about the parties to the transaction. This must be sufficient identifying information about the seller and the buyer.
The subject of the agreement is the sale and purchase transaction itself. The terms of payment indicate the deposit amount as an already paid part of the transaction price. This fact carries with it the need to include clauses in the text on liability for refusal to finalize the main contract. It is necessary to indicate whether the deposit money will be returned and under what circumstances.
Preliminary agreements carry obligations for the participating parties to further sign a purchase and sale agreement with the same conditions as described in the preliminary agreement. This fact speaks to the importance of correctly drafting the document. Therefore, lawyers need to be involved at this stage.
An entry must be made indicating the date of completion of the transaction. Accordingly, liability for failure to meet deadlines is allowed. They are imposed on the culprit of the deal failure. The only thing that can remove them is the conditions that are specified in the “force majeure” section.
Below is a standard form and a sample of a preliminary purchase and sale agreement with a deposit, a version of which can be downloaded for free.
Sample preliminary agreement for the purchase and sale of an apartment with a deposit in 2023 - price
Each person has the right to sell real estate owned by him
, and another person has the right to buy it at a specified price. It is set by the seller, who may require the deposit to be transferred. In turn, the buyer of the apartment may insist on signing a preliminary purchase and sale agreement so that it is not changed before signing the main agreement.
General provisions
The phrase “preliminary purchase and sale agreement” refers to a public document drawn up and signed by participants in a certain type of legal relationship.
According to its terms, one person undertakes to transfer ownership of his apartment to another person for a certain price in the future. He undertakes to accept it by paying the price agreed upon in the preliminary agreement.
What it is
The term “deposit”, in accordance with the definition of Article 380 of the Civil Code of the Russian Federation, means a certain amount of money that is paid in advance. It guarantees the fulfillment of obligations by participants in legally significant actions performed for a specific purpose.
For example, the purchase and sale of real estate. The seller gains the opportunity to remove it from sale, and the buyer acquires the right of first person.
A preliminary agreement must be signed if one of the participants does not have the opportunity to immediately complete the transaction. It is not subject to notarization, which to some extent simplifies the procedure for its registration.
A sample preliminary purchase and sale agreement can be downloaded here.
The document is canceled after the parties to the transaction sign the main agreement. In practice, there are cases when a preliminary agreement acquires legal force.
The measure is feasible when the buyer transfers as a deposit a sum of money in the amount of 2/3 of the cost of the apartment.
Between whom is it concluded?
Any individual who meets the established requirements can become a participant in a transaction for the purchase and sale of an apartment in accordance with civil law standards.
These include:
- Possession of Russian citizenship.
- Coming of age.
- Recognition of legal capacity.
- Availability of residence registration.
The seller as well as the buyer can appoint their own attorney. He can sign a preliminary agreement on behalf of the principal on the basis of a power of attorney, which must be formalized by a notary.
Where will you need to contact
Citizens are given the opportunity to complete a transaction for the purchase and sale of an apartment in simple written form, if its owner is the sole owner or it belongs to all members of the same family.
The parties must contact the federal agency Rosreestr to register ownership of the buyer.
If the transaction is carried out in a notarial manner, then its participants can contact a public or private notary office. She must have a license to perform notarial acts. The norm is provided for by the instructions of Article 163 of the Civil Code of the Russian Federation.
Design features
Any type of transaction must be concluded by the voluntary expression of the will of its participants, which eliminates the possibility of interference from the outside.
They must discuss all the terms of the upcoming transaction regarding the property before signing the preliminary contract. When registering it, you must be guided by civil law standards.
Terms and requirements
The cost of the apartment is one of the significant factors in the transaction, so it must be assigned unconditionally by the participants.
The measure will allow them to avoid conflict situations in the future. They may arise during the signing of the main contract if the price is changed upward by the seller. The most advantageous transaction option is the condition of making an advance payment.
If the deposit for the purchased apartment is paid, then, in accordance with the provisions of civil law, a measure of counter-fulfillment of obligations is applied. The possibility of concluding a lease agreement for an apartment that provides for its purchase cannot be ruled out.
The seller may refuse to fulfill obligations if the buyer does not fulfill its obligations, which may lead to termination of the preliminary contract. Initiation of the procedure for its termination by the seller entails a double return of the deposit, which is noted in Article 381 of the Civil Code of the Russian Federation.
If the buyer does not fulfill the obligation to conclude a transaction for the purchase and sale of an apartment, he will lose the funds transferred as a deposit.
When transferring it, a receipt is drawn up indicating the exact amount by the seller of its receipt, which the buyer must keep until the conclusion of the main contract.
A sample receipt for receipt of funds can be downloaded here.
What does it contain
The form and content of the preliminary and main agreements are similar to each other, therefore the terms of the upcoming transaction must be thought out in advance and clearly formulated.
It states:
- personal and passport data of the seller and purchaser;
- rights and obligations of the parties to the contract;
- location of the apartment, its total area, technical characteristics;
- the cost of an apartment in national currency in words and figures;
- method of settlement;
- the amount of money transferred as a deposit;
- term for concluding the main purchase and sale agreement;
- liability of the parties for failure to fulfill obligations;
- additional terms of the upcoming transaction.
If the validity period of the preliminary agreement is not specified, then it is considered valid for one year. It loses its legal force if the transaction is not completed within the period specified in it. It indicates the date of its preparation, after which the parties must sign it.
Compilation example
The legislator has not introduced a unified form of the preliminary agreement signed during the purchase and sale transaction. It can be written in any form with your own hand on writing paper in A-4 format or typed on a personal computer and then printed.
The main requirements for drawing up a document are:
- Compliance with the rules for drawing up official papers.
- No grammatical errors or corrections in the text.
- Indication of the full name of the parties signing it.
- A detailed description of the subject of the contract, its characteristics and postal address.
Attached documents
To conclude a preliminary agreement, the following documents will be required:
| Indicators | Description |
| Civil passports of the parties to the transaction | identifying them |
| Title deed for an apartment | including technical and cadastral passport |
| Extract from the Unified State Register, | confirming the absence of encumbrance on the apartment |
| Consent of the second spouse to sell the apartment | — |
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Important nuances
The price of the procedure consists of the cost of legal and technical work. It is established by the notary office in accordance with the instructions of the act “Fundamentals of legislation on notaries”.
If the validity period of the preliminary agreement is not specified, then it is considered valid for one year. It loses its legal force if the transaction is not completed within the period specified above.
The method of payment is established by the parties to the transaction during negotiations, but it must be noted in the preliminary agreement. Mutual settlements can be made both in cash and non-cash.
The second method involves transferring funds to the seller’s bank card or his deposit account.
What is regulated
- Issues regarding the execution of various types of transactions, including real estate, are regulated by a number of legislative and by-laws.
- The fundamental one is the Civil Code of the Russian Federation, the provisions of which regulate civil law relations that have priority over regulatory legal acts in the field of civil law.
- Articles 28, 37, 131, 160, 165, 247, 254, 292, 380-381, 429, 445, 454,572, 574, 555 and 578 of the Civil Code of the Russian Federation explain the grounds for establishing, changing and terminating the rights and obligations of citizens who commit certain types of transactions.
- In addition, the listed acts provide for issues of a general and specific nature:
| Indicators | Description |
| Federal Law “On State Registration of Real Estate” | the act was issued on July 13, 2015 under number 218-FZ. Based on his instructions, each piece of real estate must be registered in the Unified State Register. The procedure is carried out by the federal department “Rosreestr”, which performs the functions of the state on its behalf |
| Housing Code of the Russian Federation | the act formulates the rights and obligations of homeowners and tenants of the housing stock of local government bodies and municipalities |
| Order of the Ministry of Justice of the Russian Federation “On approval of register forms for registration of notarial acts, notarial certificates and certification inscriptions on transactions and certified documents” | the act sets out the rules for preparing documentation for various types of transactions |
In addition to the above, it should be noted that the conclusion of a transaction for the purchase and sale of an apartment under the terms of the preliminary agreement has legal force.
Any of the parties to the transaction may file a claim with the judicial authority in the event of controversial situations, which provides for the fulfillment of obligations or compensation for losses and lost profits on the basis of Article 250 of the Civil Code of the Russian Federation.
Attention!
- Due to frequent changes in legislation, information sometimes becomes outdated faster than we can update it on the website.
- All cases are very individual and depend on many factors. Basic information does not guarantee a solution to your specific problems.
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