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| Dominican Lawyers |
1.- WHAT IS THE REAL ESTATE PURCHASE PROMISE CONTRACT?
In real estate business in the Dominican Republic, when a piece of furniture is not going to be purchased with the full price and immediate delivery of the same, it is essential to make a real estate sale promise contract, which consists of a bilateral agreement through which both the seller, on his side, promises to sell and deliver the property in a certain time and conditions, while the buyer, on his side, also promises to deliver the economic amount of the price of the property in certain conditions and time.
2.- WHEN IS THE REAL ESTATE PURCHASE PROMISE CONTRACT MADE?
Normally, the real estate sale promise contract is given when the property is not finished and it is necessary to wait some time for its completion, on the one hand, or when the buyer does not have the full price of the property value and needs time to obtain the remaining money, either managing a loan in a financial intermediation entity or with a person, whether natural or legal.
3.- IMPORTANCE OF THE REAL ESTATE PURCHASE PROMISE CONTRACT
The important thing is that in the real estate sale promise contract the conditions under which the sale and payment of the property will be executed are agreed upon, and when they are fulfilled, the buyer will turn out to be the owner of the property that has been reserved through the promise of sale contract, and the seller will receive the entire amount agreed for the sale price.
This contract is also important to guarantee in writing, and especially to have proof, of the agreements reached by the parties, and in such a way, to be able to guarantee that said agreements are fulfilled, either amicably or in the worst case. of the cases, by the judicial route in a compulsory way through actions that will be known by the courts.
4.- BREACH OF THE REAL ESTATE PURCHASE PROMISE CONTRACT
Thus, if one of the parties, be it the seller or the buyer, fails to comply with the agreed obligations, the party who has been breached can perfectly sue before the courts of the Dominican Republic, either the execution of the agreed contract or the resolution of the contract and the claim for compensation for the damages that may have been suffered due to said breach.
Normally, in real estate sale promise contracts a clause is inserted in which it is stated that if the seller fails to comply with the obligations agreed with the buyer, the former must indemnify the latter with an agreed amount.
Similarly, this contract also establishes that if the buyer fails to comply with his obligations, he may lose part or all of the monetary advances he has made and which are recorded in the real estate purchase promise contract, in addition to stopping to indemnify the damages suffered by the seller due to the buyer's breach.
Hence lies the importance of the real estate sale promise contract, since it will establish the conditions under which the property will be bought and sold, as well as all those related to its delivery, payment, non-compliance, penalties and compensation.
