Contract of sale 

Buying of real estate and apartments are made through contracts of sale.

Buying or selling real-estate

When buying or selling real estate there are a few formal requirements. The contract needs to be in writing, signed by both the seller (and his/her spouse) and the buyer, and the contract needs to contain information about the object of transaction (the property unit designation, how big of a share that is being sold etc.), the price and a declaration that the seller transfers the property to the buyer. Contracts like these are often witnessed, but it is not required by law. In a sales contract regarding real estate there is often a term stipulating that a bill of sale is to be made. This is for all intents and purposes corresponding to the settlement that is made when purchasing a co-operative apartment. The defining difference between a bill of sale and a settlement is that a bill of sale must be made and signed by both seller and buyer in order for the purchase to be valid. The bill of sale, if one is made, and a request to change the registration of the title is then sent to the registration authority. The contract of sale should clearly state what has been agreed upon between the seller and the buyer.

In case of a dispute the contract is of great importance. It is important that both parties are aware of what the contract says and how it affects their possibilities to make claims against the other party. For anyone not regularly buying or selling real estate it is always recommended to have a lawyer go through the contract before it is signed. This way uncertainties can be avoided, and the contract be adjusted to better represent the intents and wishes of both parties.

Purchasing an apartment

When purchasing an apartment a written contract needs to be made. The document needs to contain information about both who is selling and who is buying, which apartment is being sold, and to what price. The contract needs to be signed by both the seller and the buyer. No witnesses are needed. In the contract it is often regulated which day the ownership is transferred to the buyer. On this day the parties meet for the so called settlement. The meeting often takes place at the real estate agents office or at the seller’s bank. When buying or selling an apartment it is important that the contract represents the intents of the parties and what has been agreed upon.

Since the sales contract holds significant weight in a dispute it is important that both parties to the contract are aware of the consequences of the agreement and how it affects their opportunities to make claims against the other party. For anyone not regularly buying or selling apartments it is always recommended to have a lawyer go through the contract before it is signed. This way uncertainties can be avoided, and the contract be adjusted to better represent the intents and wishes of both parties.

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