This type of contract is not provided for in the Civil Code, but is recognised for registration purposes in Article 14 of the Mortgage Ordinance.
It is a contract that precedes the sale and prepares the conditions for the sale. It is a legal creation that establishes that it is a completed purchase and sale and that the expression of will by the opting party (buyer) is sufficient for the purchase and sale contract to be signed and executed in a binding manner for the transferor (seller), without any further action being required.
Main features of the purchase option agreement
1. Once signed, the grantor (seller) is obliged to enter into the sale and purchase agreement if the optionor (buyer) so desires. However, the buyer may withdraw from the sale.
2. The object of the sale must be determined. As soon as the purchase option has been exercised, the sale is deemed to have been concluded, so that the object, in this case the real estate, must meet the general requirements.
3. The agreed price of the property for the future purchase must also be specified.
4. The agreed period within which the buyer (opting party) is entitled to execute the purchase must be stated. Within this period, the buyer may express his decision to purchase at any time by notifying the seller (grantor). This means that the option has been exercised without any further action being required.
5. Optionally, the payment of a premium by the buyer to the seller may be included in the contract at the will of the parties.
Registration of the purchase option contract in the property register
The option contract for the purchase of a property is registrable in the land register and protects the buyer and the purchaser from the good faith of the property which is the subject of the contract. In addition, it can be registered if it meets the general requirements for registration set out in Article 14 of the Mortgage Ordinance, in particular
- There is an express agreement between the parties that it will be registered.
- A certain price is set for the acquisition of the property.
- The period for exercising the option is a maximum of four years.
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