This is the document that obligates the parties to carry out the property purchase/sale transaction under a given set of terms and conditions, in accordance with their respective interests, needs and requirements.
It must be adapted to each separate transaction. Any breach of the promissory agreement will result in penalties.
The parties must be aware of the following:
— deadline for executing the warranty deed, in view of the time needed to vacate the property and obtain bank financing;
— situations impeding the fulfilment of the agreement, but not resulting in penalties to the party in question (e.g. inability to complete work within scheduled deadlines, inability to hand over the property or obtain a bank loan);
— warranty deed (who schedules it, how far in advance, how to notify the other party);
— consequences of a breach, if different from those provided for by law;
— possibility of specific enforcement of the agreement (obligate the other party to fulfil the agreement through legal action);
— payment method and deadlines (on the date of the warranty deed, never accept personal cheques, only cashier’s cheques or bank cheques).