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What is a Contract to Sell?

A Contract to Sell is a binding agreement where a seller promises to transfer ownership of property to a buyer at a future date, once specific conditions are met. Under Dutch civil law, this preliminary contract (voorlopig koopcontract) creates mutual obligations while keeping the actual transfer of ownership separate from the agreement to sell.

This type of contract plays a crucial role in Dutch real estate transactions, where it's commonly used as a koopovereenkomst. It protects both parties by clearly stating the purchase price, payment terms, and delivery conditions. Once signed, it gives the buyer the right to demand transfer of ownership after fulfilling their obligations, particularly paying the agreed price.

When should you use a Contract to Sell?

Use a Contract to Sell when you need to secure a major purchase while important conditions still need to be met. This agreement is especially valuable in Dutch real estate transactions, where buyers often need time to arrange financing or conduct property inspections before completing the purchase.

The contract becomes essential when dealing with valuable assets, from commercial properties to large equipment purchases. It protects both parties by locking in the price and terms while giving time to arrange practical details. For example, a business buying retail space can secure the deal while waiting for permits, or a company can lock in machinery prices while arranging international shipping logistics.

What are the different types of Contract to Sell?

  • Sales Contract For House: Most formal version used in real estate, includes detailed property descriptions and municipal requirements
  • Car Sale Agreement: Simplified format for vehicle transfers, focusing on technical specifications and maintenance history
  • Purchase Sale Agreement: General-purpose version for business transactions, adaptable for various goods and services
  • Vehicle Sale Agreement: Specialized format for commercial vehicles, including detailed warranty and inspection provisions

Who should typically use a Contract to Sell?

  • Property Sellers: Private homeowners, real estate developers, or businesses selling commercial properties who want to secure a future sale while conditions are being met
  • Buyers: Individuals, companies, or investors who need time to arrange financing or complete due diligence before finalizing the purchase
  • Real Estate Agents: Help draft and negotiate terms, ensuring compliance with Dutch property laws and market practices
  • Notaries: Required by Dutch law to formalize property transfers, they review and authenticate the final contract
  • Legal Advisors: Guide both parties through complex terms, especially in commercial transactions or international deals

How do you write a Contract to Sell?

  • Property Details: Gather complete description, cadastral data, and any known defects or limitations
  • Party Information: Collect full legal names, addresses, and identification details of all buyers and sellers
  • Financial Terms: Document the agreed price, payment schedule, and any deposit requirements
  • Conditions: List all prerequisites like financing arrangements, inspections, or permits
  • Timeline: Set clear dates for completion of conditions and final transfer
  • Documentation: Prepare property ownership proof, relevant permits, and maintenance records
  • Draft Review: Use our platform to generate a legally compliant contract, ensuring all Dutch legal requirements are met

What should be included in a Contract to Sell?

  • Party Identification: Full legal names, addresses, and registration numbers for all involved parties
  • Property Description: Detailed specification of the asset being sold, including registration details and exact location
  • Purchase Price: Clear statement of amount, currency, and payment terms including any deposits
  • Transfer Conditions: Specific requirements that must be met before ownership transfers
  • Delivery Terms: Timing and method of property transfer, including key handover details
  • Default Provisions: Consequences of breach and remedies available to each party
  • Notarial Deed: Reference to the requirement for notarial execution under Dutch law
  • Signatures: Designated spaces for all parties, including witness requirements if applicable

What's the difference between a Contract to Sell and a Real Estate Sale Contract?

A Contract to Sell is often confused with a Real Estate Sale Contract, but they serve distinct purposes in Dutch property transactions. While both deal with property transfers, they function differently in timing and legal effect.

  • Transfer of Ownership: A Contract to Sell creates a promise to transfer ownership in the future, while a Real Estate Sale Contract executes the immediate transfer
  • Conditions: Contract to Sell typically includes prerequisites that must be met before the sale completes, whereas a Real Estate Sale Contract represents the final, unconditional transfer
  • Legal Effect: Contract to Sell creates mutual obligations but keeps ownership with the seller until conditions are met; Real Estate Sale Contract immediately transfers property rights
  • Timing: Contract to Sell is used earlier in the transaction process, allowing time for financing and due diligence, while Real Estate Sale Contract marks the conclusion

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