The private real estate purchase and sale agreement’s primary purpose is to provide security and protection to the parties involved in a real estate transaction. By putting the agreed-upon terms in writing, misunderstandings are avoided, and the legal foundation for the property’s purchase and sale is established.
What Is a Private Real Estate Purchase and Sale Agreement?
A private real estate purchase and sale agreement is a legal agreement between two parties, the seller and the buyer, where the terms and conditions of the purchase of real property are established.
This can include houses, apartments, land, and other types of real estate. In this type of agreement, the parties agree on the conditions of the sale, including the price, payment method, deadlines, and any other relevant clauses for the transaction. It’s important to note that this type of agreement is private, meaning it does not need to be registered with a public entity.
How and Who Creates the Real Estate Purchase and Sale Agreement?
In Panama, the real estate purchase and sale agreement can be drafted by the parties involved in the transaction, either the seller or the buyer. However, it’s advisable to seek the advice of a lawyer specialized in real estate law to ensure that the agreement complies with all applicable laws and regulations in the country.
The lawyer or legal professional can help draft the private real estate purchase and sale agreement, ensuring that it includes the terms and conditions agreed upon by both parties, responsibilities, and warranties in accordance with the current legal framework.
Even though the private real estate purchase and sale agreement does not require formal registration with a public entity, it’s important to keep a copy duly signed by both parties as legal backup in case of future disputes or claims.
Contents of a Real Estate Purchase and Sale Agreement
The contents of a private real estate purchase and sale agreement may vary depending on the negotiations between the seller and the buyer. However, common elements typically included in such agreements are:
Identification of the Parties
Full names and identifications of both parties, i.e., the seller and the buyer.
Description of the Property
A precise description of the location and characteristics of the property subject to the sale, including the address, square footage, available public services, among others.
Price and Payment Method
Establishing the agreed-upon sale price and the method of payment, whether in cash, through a bank transfer, or another agreed-upon method.
Delivery and Possession Conditions
Specifying the conditions under which the property will be delivered to the buyer and the date when possession will be transferred.
Including clauses related to warranties offered by the seller, such as the warranty that the property is free from encumbrances or hidden defects.
The buyer declares acceptance of the sale and transfer of the property by the seller through this document, in accordance with the previously expressed terms and conditions.
The signatures of both parties at the end of the private real estate purchase and sale agreement are essential to validate the document.
Sample Real Estate Purchase and Sale Agreement
Need Legal Advice?
Our team of lawyers specialized in real estate law understands the importance of having solid and clear contracts that protect your interests. We ensure that each real estate purchase and sale agreement is meticulously drafted, considering all relevant legal aspects and adhering to the laws and regulations in effect in Panama.
Trust Panama Global Solutions to provide the reliable and expert legal advice you need for your real estate transactions. For more information, visit https://www.panamags.com/bienes-raices-panama/ where you will find expanded information about our legal services in real estate matters.