Buying a property often does not end immediately with the signing of the main contract. In practice, a preliminary contract is often signed first, especially when the buyer needs time to arrange financing, check documentation, or agree on payment and handover deadlines.
A preliminary contract and a real estate sale contract have different roles. A preliminary contract usually records the agreement that the main contract will be signed later, while the sale contract is the key document for completing the purchase and registering ownership in the land registry.
Below, we explain what these documents usually contain, why they should not be signed without proper checks, and what buyers and sellers should pay special attention to.
What is a preliminary contract for real estate?
A preliminary contract for real estate is a document in which the buyer and seller agree on the essential terms of a future sale. It is most often used when there is a serious intention to buy, but not all conditions are ready for the main contract to be signed.
This may be the case when the buyer is waiting for loan approval, the seller is preparing documentation, the property is under construction, or the parties want to define deadlines and conditions in advance.
A preliminary contract is not merely an informal property reservation. If it contains the essential terms of the future main contract and is concluded in the required form, it can bind both parties. This is why its content should be reviewed before signing.
1. When is a preliminary contract usually signed?
A preliminary contract is usually signed when the buyer and seller want to reserve the property and put the agreed terms in writing before signing the main contract. This reduces the risk of misunderstandings about the price, deadlines, payment method and other important details.
A preliminary contract is not required in every property transaction. If the documentation, financing and all terms are already ready, the parties can proceed directly to the main contract. However, in more complex purchases, a preliminary contract can provide a clearer framework for the process.
2. What does a preliminary contract usually contain?
A good preliminary contract should clearly describe what the buyer and seller have agreed. In practice, it usually includes:
- buyer and seller details,
- an accurate description of the property and land registry details,
- the agreed purchase price,
- the payment method and payment deadlines,
- the deadline for signing the main contract,
- the amount of the deposit or advance payment, if agreed,
- withdrawal terms and consequences if the agreement is not fulfilled.
If a deposit is agreed, it is especially important to define its amount, purpose and what happens if one party withdraws. It is not advisable to rely only on a verbal agreement, because these details can later become a source of dispute.
3. What is a real estate sale contract?
A real estate sale contract is the main document that regulates the final purchase of the property. It clearly identifies the seller, the buyer, the property, the price, payment method, handover deadlines and other terms relevant to the transfer of ownership.
Unlike a preliminary contract, the main contract can serve as the basis for registering ownership in the land registry, provided that it meets the required conditions and is accompanied by the necessary documents.
4. What is a tabular statement and why is it important for ownership registration?
One of the most important elements of a property purchase is the tabular statement, also known as clausula intabulandi. This is the seller's statement allowing ownership to be registered in the buyer's name. It can be included in the sale contract or issued as a separate document, depending on the agreement and payment arrangement.
It is important to know that the buyer does not become the owner simply by signing the contract or paying the price. Ownership of real estate is acquired by registration in the land registry. This is why the registration process should be started on time after the contract is signed.
5. Notary public, financing and additional checks
In real estate transactions, signatures and certain statements are usually certified by a notary public. If the purchase is financed with a loan, the bank may require additional notarial processing or solemnization of certain documents, depending on the financing conditions.
Before signing any document, it is useful to check the land registry status, possible encumbrances, condominium ownership if the property is an apartment in a building, the occupancy permit where relevant, and whether the documentation matches the actual condition of the property.
What should you check before signing?
Before signing a preliminary contract or the main contract, it is useful to check:
- whether the seller is the actual owner of the property,
- whether there are any encumbrances, notes or unresolved issues,
- whether the price, deadlines and payment method are clearly written,
- what happens to the deposit if one party withdraws,
- when the property will be handed over to the buyer,
- whether the contract is sufficient for ownership registration.
If the buyer is not sure about the content of the document, it is advisable to request a professional review before signing. This is especially important for higher-value properties, properties under construction, purchases financed by a loan or purchases involving several co-owners.
Browse the current property offer in Makarska
If you are planning to buy an apartment, house, holiday property or land in Makarska and the surrounding area, it is useful to check the documentation early and clearly define every step of the purchase. Browse the current AB Adrion property offer or contact the agency for advice based on your needs and purchase plans.
Frequently asked questions about preliminary and sale contracts
Is a preliminary contract mandatory when buying real estate?
It is not mandatory in every transaction, but it can be useful when time is needed for financing, documentation checks or agreement on deadlines before the main contract.
What is the difference between a preliminary contract and the main contract?
A preliminary contract usually confirms the agreement that the main contract will be signed later, while the main contract is the final document regulating the sale and may serve as the basis for ownership registration.
Does a deposit have to be paid when signing a preliminary contract?
A deposit is not always mandatory, but it is often agreed as additional security. Its amount, purpose and refund or retention conditions should be clearly written.
When does the buyer become the owner of the property?
The buyer becomes the owner only after ownership is registered in the land registry, not merely by signing the contract or paying the purchase price.
Can the tabular statement be issued as a separate document?
Yes. Depending on the agreement and payment arrangement, the tabular statement may be included in the sale contract or issued as a separate document.
Should the contract be reviewed by a professional?
It is recommended, especially for higher-value purchases, loan-financed purchases, properties under construction or documentation the buyer does not fully understand.
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