Preliminary agreement for the sale of real property
1.Parties
- 1.1
Seller: Seller (hereinafter the Seller).
Give name, personal code, address and marital status (company: code, office, signatory). Property bought in a marriage is usually joint: both spouses sign.
- 1.2
Buyer: Buyer (hereinafter the Buyer).
Give name, personal code, address and marital status. A buyer without a personal code gives date of birth and passport number.
- 1.3
The Seller and the Buyer (hereinafter together the Parties and each a Party), under Article 6.165 of the Civil Code of the Republic of Lithuania, have made this preliminary agreement (hereinafter the Agreement).
- 1.1
2.Subject of the Agreement
- 2.1
The Parties undertake to make, on the terms and by the dates set in this Agreement, a sale contract for real property in notarial form (hereinafter the Main Contract), under which the Seller will sell and the Buyer will buy the following real property: Description of the property, unique No Real Property Register unique number, located at Address of the property (hereinafter the Property).
Copy both from a fresh register extract. If the Main Contract does not identify the property, the notary cannot certify it (Chamber of Notaries).
- 2.2
Together with the Property, the following rights to the land plot pass to the Buyer: Buyer's rights to the land plot.
The deed must state the land rights, e.g. ownership or the seller's right of use (CK 6.394(2)). Flat on state land: pick not applicable, if the notary confirms.
- 2.3
Together with the Property, the following appurtenances and movables pass to the Buyer, and their value is included in the price: Appurtenances and movables included.
List storage room, parking space, furniture and appliances.
- 2.1
3.Seller's statements and undertakings
- 3.1
The Seller confirms that the Property belongs to the Seller under Seller's title document and that it is not mortgaged, seized or let, is not the subject of any dispute and carries no other restriction, except: Encumbrances the buyer accepts.
List the encumbrances the buyer accepts, such as a mortgage or an easement.
- 3.2
Until the Main Contract is made, the Seller will not transfer, mortgage, let or otherwise encumber the Property without the Buyer's written consent.
- 3.3
The Seller has disclosed to the Buyer all defects of the Property known to the Seller: Defects the seller has disclosed.
Parties in negotiations must disclose information that is essential to the contract (CK 6.163(4)).
- 3.4
People who live in the Property or have declared their residence there: People living or registered there. The Seller will ensure that these people move out and change their declared residence before the handover, unless the Parties agree otherwise in writing.
If someone keeps a right to live in the home after the sale, the deed must list them and their rights (CK 6.400).
- 3.1
4.Price and payment
- 4.1
The price of the Property is Price in euros, in figures EUR (Price in words, in Lithuanian euros). The price does not change unless the Parties agree otherwise in writing.
The Main Contract must state the price, or it is not made (CK 6.397(1)).
- 4.2
The price is paid as follows: How and when the rest is paid.
If part of the price is paid after the deed, the notary registers a restriction on the buyer's disposal of the property until the seller confirms payment.
- 4.1
5.Advance
- 5.1
Within Working days to pay the advance working days of signing this Agreement, the Buyer pays the Seller an advance of Advance EUR to the Seller's account Seller's bank account (IBAN) and bank. When the Main Contract is made, the advance is credited against the price.
- 5.2
The Parties agree that the advance is not earnest money. If the Main Contract is not made for reasons for which the Buyer is not responsible, the Seller refunds the whole advance to the Buyer within Working days to refund the advance working days.
CK 6.98(2) excludes earnest money from preliminary agreements. What happens to the advance when the buyer is at fault is set in the liability section.
- 5.1
6.Financing condition
- 6.1
Optional
The Buyer will pay part of the price, no more than Maximum loan EUR, with a loan from a credit institution. Within Working days to apply for the loan working days of signing this Agreement, the Buyer applies for the loan to at least one credit institution and informs the Seller.
Keep this section whenever the price depends on a loan. Delete both clauses for a cash purchase.
- 6.2
Optional
If, by Date by which the loan must be granted, the credit institution refuses the loan and the Buyer gives the Seller the written refusal, the Buyer may end this Agreement unilaterally. In that case no penalty applies, and the Seller refunds the whole advance within Working days to refund the advance working days.
Ask the bank for a written refusal. Without it, the seller can argue that the buyer simply backed out.
- 6.1
7.Preparing the Main Contract
- 7.1
Before the Main Contract is made, the Seller gives the notary and the Buyer a valid energy performance certificate for the Property, a certificate from the owners' association or the building administrator that all payments are settled, certificates that the utility bills are paid, and any other documents the notary asks for.
The seller must show the energy performance certificate to a potential buyer and hand it over to the buyer (Statybos įstatymas, art. 51(3), point 3).
- 7.2
If the Property is joint property of spouses, both spouses will sign the Main Contract, or one of them with a power of attorney from the other certified by a notary.
- 7.3
Optional
If a share in co-owned property is sold, the Seller notifies the other co-owners of the intended sale through a notary and, before the Main Contract is made, provides their refusal to buy or proof that they did not use their pre-emption right within one month.
Keep it only when a share is sold. A co-owner whose pre-emption right was ignored can ask a court to take the buyer's place (CK 4.79).
- 7.1
8.Making the Main Contract
- 8.1
The Main Contract must be made no later than Latest date to sign the notarial deed before the notary Notary or notary office. The Parties agree the exact date and time in writing at least Working days' notice of the signing date working days in advance.
If this date passes without a deed, the duty to make the Main Contract ends (CK 6.165(5)). Extend it in writing first.
- 8.2
The notary's fee and the Real Property Register costs are paid by Who pays notary and registration costs.
- 8.1
9.Handover of the Property
- 9.1
The Property is handed over to the Buyer no later than Latest date to hand over the property, when the Parties sign a handover-acceptance act that records the meter readings and the keys handed over.
Ownership passes when the property is handed over, recorded in this act (CK 6.393(4) and 6.398). The act is often part of the deed.
- 9.2
Until the handover, the Seller bears the risk of accidental loss of or damage to the Property, and the Seller pays the taxes and utility charges for the Property.
- 9.1
10.Liability
- 10.1
A Party that without good reason avoids or refuses to make the Main Contract pays the other Party a penalty of Penalty EUR. The penalty is deemed to be the minimum loss.
Use the same penalty for both sides, often the amount of the advance. A court can reduce a clearly excessive penalty (CK 6.73(2)).
- 10.2
If the Main Contract is not made through the Buyer's fault, the Seller may set the penalty off against the advance received and refunds the rest of the advance to the Buyer within Working days to refund the advance working days. If the Main Contract is not made through the Seller's fault, the Seller refunds the whole advance and pays the penalty within the same period.
This clause sets out in writing how the advance and the penalty interact if the Main Contract is not made.
- 10.1
11.Final provisions
- 11.1
The Agreement takes effect when signed and remains in force until the Main Contract is made or until the deadline set for the Main Contract passes.
- 11.2
Amendments and additions to the Agreement are valid if made in writing and signed by both Parties. Notices are sent to the following addresses and email addresses: Addresses and emails for notices.
- 11.3
The Agreement is governed by the law of the Republic of Lithuania. Disputes are settled by negotiation or, failing agreement, by the courts of the Republic of Lithuania.
- 11.1
12.Signatures
- 12.1
The Agreement was made at Place of signature, on Date of signature, in two originals of equal legal force, one for each Party. Seller: (name, surname, signature). Buyer: (name, surname, signature).
- 12.1