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Preliminary Property Agreement

What it is?​

A promise that both parties will conclude the final contract (transfer of ownership) within a specified time period.

It is needed because of:

  • mortgage loans (take 1-2 months)
  • verification of documents (1 week, done by specialist)
  • time for old owner to move out

The buyer guarantees that nobody else is buying. Same kind of document can exist for other property like cars, boats, etc.

In this document it should be explicit what stays in the apartment, who pays for what.

What Must It Contain?​

  • personal data of both parties (Name, surname, PESEL, address, proof number)
  • description of all property details (Address, KW number, area, floor, share)
  • the agreed purchase price (gross, in words)
  • the date of conclusion of the final contract (strongly recommended)
  • amount of the deposit (including amount, date, account number, refund policy)
  • condition of the property from the day of inspection, and a list of defects
  • what remains in the price (furniture, equipment, etc.)
  • rights belonging to the premises (e.g. parking space, storage room, etc.)
  • description of rooms (bedrooms, bathrooms, kitchen, living room, balcony, terrace)
  • Suspensive condition — "the contract shall enter into force subject to obtaining a loan within X weeks"
  • Property release date — usually 1-4 weeks after the notarial deed
  • Seller’s statements
    • no debts
    • no third-party claims (no co-ownership, no disputes)
    • no lease agreements
    • nobody is registered (zameldowany) in the property
  • Contractual penalty — additional security in addition to the deposit (e.g. for delay in issue)
  • method of delivery of keys, and receipt protocol
  • Penalties for non-compliance with the agreement
  • Dissolution condition: In the case of buying on credit, it is worth adding that the contract is terminated (and the deposit is returned) if the buyer receives negative credit decisions from a certain number of banks (e.g. three), despite submitting complete applications. In the event of a loan refusal, the deposit returns in full. This practice is common and lawful.

What documents are needed?​

  • personal data of both parties: names, names of parents, marital status, identification document number, PESEL, address of residence
  • a notarial deed (if not in notarial form, the contract's legality cannot be enforced)

From the seller:

  • In the case of co-ownership (married) all parties must be named. All parties need to agree.
  • Certificate of lack of debt (Zaświadczenie o braku zadłużeń)
  • Certificate of check-in (Zaświadczenie o zameldowaniu, from Urząd gminy)
  • Energy certificate (Świadectwo energetyczne)
  • Base of purchase (Podstawa nabycia, akt kupna, spadek, darowizna)
  • Excerpt from the land and mortgage register number (ekw.ms.gov.pl, wypis z rejestru gruntów, terrain is registered within the city)

Advance Amount​

Not specified in the law. In practice, ranges from 5-10% of the price.

Notarial Deed Cost​

Approximately 2000zł plus VAT

Deposit (zadatek) VS Advance (zaliczka)​

  • Advance (Zaliczka) is credited against the full price. If the preliminary agreement is not fulfilled (by any of the parties), the advance is returned.

  • Deposit (Zadatek) is non-refundable. If the buyer resigns, the seller keeps it. If the seller resigns, the buyer receives double the amount of the deposit. If both parties resign, the deposit is returned to the buyer. If the agreement is concluded normally, it is credited against the full price.

Since the deposit is a commitment from both parties, it is the recommended way to proceed.

Sources​