Check list for the purchase contract
30.03.2020
- It should go without saying, but even so it's worth repeating: don't sign any contract which you haven't read yourself and completely understood. In the case of questions, turn to an attorney or the responsible notary.
- Be on guard for possible traps. If, for example, it states that the keys are first handed over to you after you've made all instalment payments and paid for all special requests, in this way the seller has a way to put pressure on you.
- Verbal promises might sound great, but afterwards they cannot, of course, be backed up with proof. Thus, trust only whatever is in the contracts or in other written documents. The notarised contract is always definitive, but such isn't the case for non-binding sales documents.
- Assure yourself that a fair payment plan is agreed. If you've already prepaid 30 or 40 per cent in advance or at the time of reserving the property, you're essentially acting as the bank for the construction project. It's better to do business on a step-by-step basis: when some money is paid, then the contractor provides some services.
- Don't let yourself be put under time pressure. For a detailed examination of the documents and contract you should have at least two to three weeks.
- Items which belong in the purchase contract include, above all: precise details concerning price, deadlines, an exact description of the property, payment conditions/due dates, provisions for taxes and fees, guarantees/warrantees, setting aside any possible real estate profit tax, condition at the time the property is handed over, and references to further documents (as part of the contract).
- In the case of a condominium, besides the purchase contract, important documents include the condominium association's certificate of incorporation as well as the association rules and bylaws.