Purchase and Sale of Immovable Property in General
When buying and selling immovable property, it is important to ensure that all requirements on form have been complied with. For example, the contract on sale of real estate must be made in writing, signed by all parties or by their duly authorized representatives, and confirmed by a public purchase witness in the presence of all signatories. The contract of sale must set out the purpose of the transfer of ownership, the real estate to be transferred, the seller and the buyer, as well as the purchase price and other consideration to be paid, if any. The transfer of the estate is null and void if the above-mentioned formal requirements have not been complied with.
When purchasing real estate on behalf of a company under incorporation, it is worth noting that in some situations, the person concluding the contract may be deemed to be the purchaser in place of the company. This is the case, for example, if the incorporation of the company has been cancelled.
When purchasing or selling immovable property, it is also important to establish whether any consents, such as that of a private individual or a public authority, are required for the transaction. For example, one spouse may normally not assign immovable property used as the family home without consent of the other spouse. Also, legal guardians are required to obtain permission of the guardianship authority (Local Registry Office) before any real estate of the ward can be assigned.
Consequently, it is of great importance for a company to be aware of the fact that purchase and sale of immovable property carries special features. Thus, a company can ensure that all issues essential in each particular case are covered.