What should you consider when signing a purchase proposal through a real estate agency?
Signing a purchase proposal involves commitments for both parties. Once signed, the buyer is bound by the terms specified in the proposal for a set period, while the seller, during this time, has the right to consider other offers and decide whether to accept them. If the proposal is accepted and signed by the seller, it automatically becomes a preliminary contract, often generic in nature. It is advisable to specify, in the proposal, that acceptance does not automatically finalize a preliminary contract, and reserve the right to sign a new, more detailed contract with the assistance of a lawyer, particularly regarding the seller’s guarantees, which will replace the standard document.
Can changes be made to the purchase proposal prepared by the real estate agency?
Typically, the purchase proposal is drafted on standard unilateral forms prepared by the real estate agency and filed with the Chamber of Commerce. Often, clients accept the proposal without any actual negotiation with the agent. This process may result in unfair clauses being included, such as exclusivity clauses, penalty clauses or requests for reimbursement of expenses.
Before signing a proposal, it is advisable to request the document in advance and have it reviewed to ensure it is compliant and does not contain unfair clauses, especially in light of Article 33 of the Consumer Code, which covers the duration of irrevocability, the amount of the deposit, and the right to commission. The original document often offers more guarantees to the seller. It is always prudent to adapt it to the client’s needs with the help of a lawyer, for instance, by including conditions such as mortgage approval, document delivery, or regularization of any minor infringements by the owner before the final purchase. Additional clauses to the document, as stated in Article 1342 of the Civil Code, prevail over those contained in the standard form.
As explicitly stated by the Civil Code:
“In contracts concluded by signing forms or templates, designed to uniformly regulate specific contractual relationships, the clauses added to the form or template prevail over those in the form or template if they are incompatible with them, even if the latter are not deleted.”
Including specific conditions is crucial to prevent the real estate agency from claiming commissions in case of non-fulfillment of contractual obligations.
What documents and information to request from the real estate agency before signing a purchase proposal
The real estate agency is required to provide all necessary documents to allow the buyer to verify the actual conditions of the property and the ownership. These documents include:
- Copy of the purchase deed (or declaration of succession and related documents).
- Cadastral map, highlighting any discrepancies compared to the current state of the property.
- Urban planning/building measures.
- Condominium regulations.
Before signing the purchase proposal, it is also advisable to request the following technical and urban documentation of the property:
- Property map.
- Cadastral survey.
- Certificate of habitability.
- Plant certifications.
- Energy performance certificate.
- Certification of the seller’s debt position by the condominium administrator.
If the property is burdened by a mortgage, it is important to also request:
- Copy of the mortgage contract.
- Receipt of the mortgage extinguishable payment or commitment to extinguish it by the date of the final contract or simultaneously with it.
Checks to perform before signing a real estate purchase proposal
While the real estate agency is obligated to provide accurate information, it cannot provide details on circumstances it has not thoroughly checked. To ensure the transaction’s safety and value, it is advisable to perform independent checks without relying solely on the information provided by the agency and the seller. This includes verifying the property’s documents to confirm ownership and validity, thus avoiding third-party disputes and unclear obligations that might be transferred to the buyer.
For instance, if the property is in a condominium, with the assistance of a lawyer, it is possible to check whether the condominium regulations contain limitations on the use of individual units, such as easements or undisclosed charges. It is also advisable to review the minutes of condominium meetings to ensure there are no ongoing condominium disputes that could result in unexpected costs.
Commissions, checks, and financing: what to consider before signing a real estate purchase proposal
The timing for paying the real estate agency’s commission is determined by the conclusion of the transaction. The deal is considered concluded when the parties, i.e., the seller and the buyer, through the mediator’s intermediation, complete an actual legal transaction. Commission is earned upon the seller’s acceptance of the purchase proposal.
However, if the parties have reached a general agreement without signing a contract, even a preliminary one, the deal cannot be considered concluded. In this case, the agency is not yet entitled to the commission.
Delivering a check to the real estate agency at the time of signing the proposal involves the fiduciary deposit of the check, which must be made payable exclusively to the owner and never to the agency. It is advisable for the lawyer to verify whether the proposal or a separate document specifies who holds the check in custody, indicating the property, the owner, and the signing date. Based on this, the check will be delivered to the owner or returned, specifying the deadline within which the agency is obliged to do so. Additionally, it is important to reference any clauses of the proposal, such as suspensive or resolutive conditions.
When the real estate agency also offers financing services, with concessions on guarantees and payment extensions, it is crucial to evaluate the financing conditions in advance. One should not rely solely on the commercial value estimate made by the agency, which might be overvalued to increase commissions, without considering possible renovation costs.
Before signing a real estate purchase proposal, it is essential to consider the issues related to commissions, checks, and financing offered by the real estate agency, aiming to gain a clear understanding of all the involved factors to make an informed and conscious decision.
