What is a Real Estate Preliminary Sale Agreement?

A real estate preliminary sale agreement is a bilateral contract in which the seller undertakes to sell, and the buyer undertakes to purchase, a specific immovable property under predetermined conditions at a future date.

With this agreement:

• The seller promises to transfer ownership of a specific property in the future.

• The buyer agrees to purchase the property.

This mutual commitment creates reciprocal obligations and establishes relative rights enforceable only between the parties to the agreement.

Validity Condition: Official Form Required

For any agreement involving the transfer of real estate ownership to be valid, it must be executed in an official form.
This is a mandatory legal form requirement related to public order.

➡️ A real estate preliminary sale agreement is only legally valid if it is drawn up by a notary in the form of a notarized deed and signed by both parties.
➡️ Agreements made with just a notary’s approval or private written contracts have no legal validity.

Can It Be Annotated in the Land Registry?

Yes. A legally valid preliminary sale agreement can be annotated in the land registry.

Legal implications of annotation:

• The agreement becomes enforceable against third parties for five years.

• During this period, any conflicting sale of the property may be invalid or challengeable.

What Benefits Does It Provide?

For the Buyer:

• Guarantees the right to purchase the property.

• Prevents the property from being sold to another party.

For the Seller:

• Gains time to resolve issues such as mortgages, liens, or other encumbrances.

• Allows preparation for the actual title deed transfer.

Important Considerations

• A preliminary sale agreement does not grant ownership rights.

• The seller remains the legal owner until the title deed is officially transferred at the land registry.

• Agreements made outside of a notary are not legally binding.

❗ Common Risks and Pitfalls

Many real estate agencies and companies offer installment-based property sales using simple contracts signed by both parties. However:

• Such contracts have no legal binding effect.

• You cannot force the seller to transfer the title deed based on an unofficial contract.

• You cannot prevent the sale of the property to a third party.

• The only legal recourse may be a claim for repayment based on unjust enrichment.

✅ Recommendation

To avoid legal disputes or financial loss, always consult a lawyer before entering into any property transaction.
Do not rely on unofficial agreements that are not executed before a notary.