A Promise of Sale Agreement, also known as a Preliminary Agreement, is a legally binding contract between a buyer and a seller in Malta. The agreement is usually signed before the final deed of sale and includes several requirements, some of which are listed below:
Identification of the parties: The Promise of Sale Agreement should clearly identify the buyer and the seller, including their full names, addresses, and ID or passport numbers.
Property description: The agreement should describe the property being sold, including the location, size, and any specific features or amenities.
Purchase price and payment terms: The agreement should state the purchase price of the property and the payment terms, including any deposit required and the payment schedule for the remaining balance.
Closing date: The agreement should specify the date by which the final deed of sale will be signed and the property will be transferred to the buyer.
Contingencies: The agreement may include contingencies, such as the buyer obtaining financing or the property passing a home inspection.
Obligations of the parties: The agreement should outline the obligations of the buyer and seller, including any repairs or renovations that need to be made before the sale is finalised.
Default provisions: The agreement should state what happens if either party defaults on their obligations under the contract.
Jurisdiction and governing law: The agreement should state which jurisdiction and governing law will apply in case of any disputes.
It's important to note that the Promise of Sale Agreement is a legally binding contract and should be reviewed by a legal professional before it is signed by either party.
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