Safe Property Purchase: Contract Details

Safe Real Estate Acquisition: Why Contract Subject and Details Are Critical?

A real estate transaction is not just an agreement on price; it is a legal process where every word can affect the security of your property rights. One of the most critical points in both the deposit agreement and the purchase contract is the subject of the contract — a precise and legally unambiguous description of the property.

Contract Subject: More Than Just an Address

It is a misconception that an address alone is sufficient. For a contract to be legally valid and protect parties from disputes, the subject of the contract must be identified with maximum precision. This includes:

• Cadastral number: This is a unique identifier that unmistakably indicates the specific land plot or building in the State Real Estate Cadastre Information System.
• Land Register section number: This confirms the legal status and registration of the property.
• Composition: A precise description of what is included in the transaction — for example, whether the land under the building, auxiliary structures, or ideal shares of common property are also being sold.

An incomplete property description can lead to a situation where the transaction is disputed or problems arise with securing property rights.

Deposit Agreement

The deposit agreement serves as mutual confirmation of the seriousness of intentions. It provides the buyer with a guarantee that the property will not be sold to another party while financing is being arranged, while the seller gains assurance about the transaction proceeding.

Important to consider:

• Consequences: If the buyer withdraws from the transaction, they forfeit the deposit, but if the seller changes their mind — they must refund it to the buyer in double the amount.
• Amount and term: Common practice is to pay 5–10% of the purchase price, but the exact term and amount are a matter of agreement between the parties.

To understand what points must be included in such a document, use our deposit agreement generator.

Purchase Agreement: The Final Agreement

In the purchase agreement, the property description and cadastral numbers must match the entries in the Land Register. This document regulates not only the price, but also the payment procedure and the moment when property rights are transferred. Third-party rights should also be considered, such as mortgages, easements, or spousal consent.

Before going to a lawyer, try our purchase agreement generator. It will allow you to conveniently enter seller, buyer, and property data to get a visual preview of what your future contract will look like.