Buying and selling real estate (e.g. a business property or a home) is a major investment for many individuals and companies. It is important to make the purchase or sale of real estate go well and preferably to prevent discussions in advance.
Buying business premises
If an enterprise has sufficient reserve capital, it can be interesting for the entrepreneur to buy a business property instead of renting it. This is because it constitutes a direct investment in the company. Any increase in the value of the business premises at a prime location may be an appropriate way to protect the company’s equity. Although an entrepreneur may choose to have a new business property built, it may be technically interesting to purchase a business property older than two years. When buying an older business property, however, there are costs for the real estate agent and notary and the transfer tax. It may be possible to close a commercial mortgage with the bank if a company currently does not have sufficient equity, but is growing.
Cancelling condition purchase of real estate
If the buyer does not yet have certainty of financing when drawing up the written agreement, a resolutive condition may be included in the agreement. In that case, the purchase will not come about if it cannot be financed. It is important that this is properly documented and supported by evidence. If you do not do this, you may be forced to buy the property or pay a fine of (usually) 10% of the value of the property.
Buying a house
The purchase of a house to a private buyer must always be recorded in writing. If the purchase of a house is only agreed verbally, then this purchase is not valid. Both the seller and the buyer of a house can then claim that the verbal purchase agreement is not valid and therefore no purchase has been made. After signing the purchase agreement, the buyer has a cooling-off period of three days to renounce the purchase. Also when buying a house, if the buyer has no certainty about the financing, he would be wise to include a resolutive condition in the purchase agreement. If he does not do so, he may be forced to buy the property or pay a fine.
Sale of real estate
It is important for both the seller and the buyer of real estate to make a written record of the sale of real estate, such as a house or business premises. A verbal agreement is not valid for a dwelling house.
When drawing up the written agreement, the buyer often does not have any certainty about the financing. In almost all agreements, a resolutive condition is included for this. If you, as a seller of real estate, are confronted with a buyer who cannot finance, then it is important to verify this and, if necessary, to issue a notice of default to the buyer, and then to dissolve the purchase agreement. This notice of default is a condition for the requirement that the buyer must pay the contractual penalty, which often amounts to 10% of the value of the property. As the court assesses the proof of default critically, it is advisable to seek legal advice on this matter. Asselbergs & Klinkhamer Advocaten will be happy to help you.
When buying and selling real estate, it is important to ask the right questions and to lay down the agreements for both parties properly, in order to prevent discussion as much as possible. A well-known point of discussion in practice is, for example, the removal of asbestos. The costs of removing asbestos then give rise to a discussion about the suitability of the dwelling and what the seller might expect.
Our company will be happy to advise you, as a buyer or seller, about your legal position. Our lawyers have a lot of experience with everything that comes with buying and to sell house fast San Antonio. If necessary, we can litigate for you.
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