Purchase and sale contract: is it safe? Buying a home in Roatan

by Roatan Buyer Agent Roatan Buyer Agent

Many people do not know if it is safe or not to buy a property only with the completion of a purchase and sale agreement, without a public deed recognized in the Roatan Honduras real estate.

 

But, after all, what is a purchase and sale agreement for and what guarantees can it give? Next, you will find out if only the purchase and sale agreement is safe or not to formalize the sale of a property.

 

What is the purchase and sale agreement?

 

The purchase and sale agreement is the formalization of an agreement between the parties, defining the clauses and conditions referring to the established business, such as price, term and payment method. It also formalizes the seller's obligation to deliver the property to the buyer without hindrance.

 

But this document is also called a private contract of promise to buy and sell, because it is a preliminary document, generating only obligations on both parties, but not transferring ownership.

 

What is public deed?

 

It is an official public document that validates the agreement between the parties. It is drawn up in the notary's office, in the presence of a notary. But, despite this, the existence of the deed still does not finalize the acquisition. This only happens after it is registered at the Real Estate Registry Office.

 

Before doing this, the buyer has all the rights to the property, but it is not yet recognized as his property before third parties. Therefore, the buyer can only be fully assured of the acquisition when the deed is registered at the competent Real Estate Registry Office.

 

What are the dangers of not registering a public deed?

 

The purchase and sale contract forms an agreement, but does not finalize it. Therefore, until the deal is actually concluded, some obstacles may appear. One of them is the seller acting in bad faith and selling the same property two or more times to different buyers, generating more than one purchase and sale agreement.

 

Only one of these buyers will actually be able to register the commitment or the deed, so the others will be harmed in the situation. Another possibility is that the seller has the property pledged to pay a debt before the buyer officially transfers it to his name.

 

How to know if a purchase and sale contract is safe?

 

In addition to basic information on price, terms and payment terms, it is essential that the contract contains information on fines and penalties to be applied to the party that fails to comply with the contractual clauses, indicating the possibilities of contractual termination.

 

All information on possible tax debts and legal impediments must also be included, and all certificates must be issued that certify that the property has no tax pending and that the seller does not respond to procedural actions that may prevent the completion of the business.

 

It is also necessary to establish the seller's duty to deliver the property without any pending issues, such as attachment, bank financing or asset sharing.

 

Another point is that the contract must contain a complete description of the property, so that it is possible to verify later if the property delivered does not fully correspond to what was negotiated. If this happens, compensation and breach of contract may be claimed.

 

There must also be a clause indicating the exact date on which the property must be vacated so that the buyer can occupy it, either on the contract date itself or at some time beyond it. A fine must be foreseen if this clause is not complied with.

 

Something very important is that the contract also establishes the deadline for registering the public deed that will make the deal official.

 

Finally, it is necessary that, in addition to the signature of the seller and the buyer, the contract also has the signature of two witnesses if there is an intention to transform it into an enforceable title.

 

Deed of real estate in installments

 

Many people believe that, if the property is paid in installments, it is necessary to first pay off all the installments and then register the deed in the name of the buyer. But this is not the only option.

 

It is possible to record in the deed the conditions for the installment of the property and predict that the deal will be dissolved if there is a failure to pay the installments. For this, it is necessary to add a resolution clause.

 

Possibility of blows

 

Sometimes, offers of properties without deed appear at prices far below the market, appearing to be a great deal. But there can be a bad intention on the part of these sellers, so you need to be very cautious about this type of negotiation.

 

After all, is the purchase and sale contract safe or not?

 

The purchase and sale contract is an essential document in the negotiation of a property, as it defines the conditions and obligations of both parties. Therefore, it can be done safely, in order to ensure that its function is correctly performed.

 

However, he is not enough alone. As long as the public deed is not registered, the buyer runs the risk of not having guaranteed ownership of the property. Therefore, it is necessary to make a secure contract, but also to make the deed and register it so that the sale is assured.

 

Thinking of buying or selling a property?

 

Now that you already know if the purchase and sale agreement is safe or not to consolidate a business, also read our article: What documents do I need to Roatan property for sale?

 

 

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Created on Mar 26th 2022 01:22. Viewed 249 times.

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