The seller is obliged to return double the amount of the deposit he has previously received. If the purchase of the property will be necessary to request the release of a mortgage from the bank, it is advisable to insert in the contract a clause allowing the buyer to withdraw from the purchase free of charge if the bank does not grant the loan. When preparing a temporary real estate contract, the buyer generally wants a provision allowing him to forego closing the deal without penalty if he cannot obtain adequate financing for the property. Sellers prefer to negotiate with a potential buyer who is previously authorized for a home mortgage. Since the buyer transfers money into the seller`s account by signing the preliminary contract, all the terms and conditions contained in the contract must be clearly explained and well explained for both parties, thus avoiding misunderstandings, legal procedures, waste of money and time. If the sale involves a building under construction, the pre-agreement is still necessary and will be the same manufacturer to design it, it will be possible to associate third parties with the preliminary agreement and design a private deed (scrittura privata). As a general rule, the pre-agreement is not a public document, but a private agreement (scrittura privata) which is binding only between the parties and not against third parties, unless the provisional agreement is transcribed into the real estate register. Common features of a temporary real estate contract include the names of the buyer and seller, a legal description or at least the address of the property and the date the closure is due to take place, according to the California Department of Real Estate. A signature line is provided for each contracting party. The prelude can be fixed for example. B if an immediate sale is not possible because the buyer is looking for a mortgage or the seller is waiting for the delivery of a new home. The preliminary contract defines the essential elements of the transaction, such as the sale price and identity of the property in question, its address and a detailed description (floors, rooms, etc.) with the dates of the land registry and the date of the final contract.
It should also define all reciprocal obligations that must be fulfilled before the property is handed over. In the case of the sale of real estate under construction, the law provides for specific rules for the preparation of the preliminary contract.
