Buying or selling real-estate property overshadows all other transactions for most of the people involved simply because of the financial importance. Substantial savings have to be invested and additional loans taken out. For the seller too, the property is often the most important item in their own assets.
In order that buyers and sellers are advised properly for such a major transaction and to avoid risks, provision is made for the involvement of a notary public. The notaries public ensure legally balanced structures and help to avoid risks, they ensure the completion of the necessary documentation and monitors the transfer of ownership in the land registry.
For instance, it is essential to prevent the buyer from paying the purchase price without receiving the real-estate property. On the other hand, the seller must not lose ownership of the real-estate property without receiving the purchase price. The notary public discusses their objectives with the parties to the contract, informs them about the regulatory options and based on this draws up a proper and balanced draft of a purchase agreement.
Real-estate purchase agreements can, for instance, pertain to the purchase of a building site, a single-family or multiple-family home, an owner-occupied dwelling or even a leasehold. The special features of a property affect the design of a contract. This applies particularly for a so-called developer contract, with which the buyer acquires a plot of land or a share of a plot of land in connection with a building (house or apartment) that has yet to be built. In this context, the builder of this property is the buyer.
The notary public arranges the following aspects in every real-estate purchase agreement:
- Safeguarding of buyer and seller
- Cancellation or continuation of encumbrances,
- Warranty of defects,
- Transfer of ownership, rights and obligations,
- Distribution of the development costs and the
- Survey requirement (purchase of subplots).
The financing should be secured before the notarization. If use is made of a bank loan, buyers should discuss when the loan can be disbursed with their banks. The notary public will then match the contractual rules governing the due date for the purchase price with the time of disbursement. If the details regarding the financing of the purchase price have been clarified in advance of the conclusion of the purchase agreement, the real-estate lien (land charge or mortgage) serving to to secure the loan can be notarized immediately afterwards.
For more information click here:
- Glossary from the Federal Council of Notaries on property and home purchasing agreements
- Explanatory leaflet from the Federal Council of Notaries about purchasing a pre-owned home
- Glossary from the Federal Council of Notaries on purchasing agreements for home and property developer purchasing agreements