Execution time: 1.5 – 2 hours
Consultation while executing: free of charge
Documents for an individual: Passports and TINs of the parties, Consent of a property owner’s spouse, in case the owner was married when purchasing the property, as well as passport, TIN, marriage certificate or a notarized permit application, executed before
Documents for a legal entity representative: Legal entity documents (articles of association, extract), Director’s (company authorized representative’s) passport and TIN and documents confirming the director’s authority (order of the director’s appointment, minutes of election of the director), notarized power of attorney, if the authorized person is acting., Seal, Legal entity’s decision to conclude a tenancy agreement (minutes of general meeting)
Required real estate documents: Real estate title documents , Technical certificate for real estate
Please note: The preliminary agreement is concluded with the view of further concluding the master agreement and loses its force after the conclusion of the master agreement.
A preliminary agreement is an agreement the parties to which are to conclude a main agreement in future within the defined period of time on terms and conditions stipulated by such preliminary agreement (e.g., preliminary agreement of a house/apartment sale and purchase).
A preliminary agreement is intended to define the intentions of the parties to conclude a main agreement in future. As mentioned above, a preliminary agreement includes the basic terms and conditions of an agreement to be concluded in future. The basic terms and conditions include, but not limited to the following: subject, price and duration of an agreement; material provisions also include all terms and conditions that are defined as such by the parties (e.g., for an apartment sale and purchase agreement, it may be a period when a seller is to vacate an apartment).
It should be mentioned that a preliminary agreement is concluded for a defined and explicitly stated by the parties period of time, upon expiration of which the parties are obliged to conclude a main agreement. A preliminary agreement becomes null and void when a main agreement is concluded by the parties.
Preliminary agreements on real estate sale and purchase become rather common lately. Conclusion of a preliminary agreement is called to protect rights of both a seller and a buyer; it defines the commitments of the parties and ensures the fulfilment of obligations under such agreement.
Please note that a preliminary agreement is concluded strictly in the form a main agreement is to be concluded in future. Therefore, if you are going to conclude an apartment sale and purchase agreement, a preliminary agreement must be drawn up in written and notarised.
