PROMISSORY AGREEMENT By Margarita Sanchez
The promissory agreement is the legal document to formalize the real estate transaction.
Each promise of both parties represents the commitment to execute a purchase and sale agreement in a Public Deed in the future. It contains the main object of the agreement where the parties establish the terms and conditions of the real estate transaction.
The most important requirements of this agreement are the names of the seller and buyer, the precise description of the property, the price of the property including the way it will be paid (for example: payments, where and when the amounts will be deposited), the penalties in case of non-compliance of each party and finally the date of the execution of the Public Deed and the date of the delivery of the physical possession of the property. These requirements are essential to properly fulfill the promise agreement.