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CONTRACT / SALE DOCUMENT OF SALE – EXCHANGE – EXCHANGE

Who is it for:
The conclusion and signing of a Sales Contract, during the purchase of a property, is
recommended in cases where the property sold in the Contract does not have a title,
for example when it is being constructed or if there are financial and other pending
issues that postpone the transfer of the property to the Buyer at a future time.
With the submission of the Sales Contract, the provisions of the Real Estate Sale
(Special Ex*****on) Law, no. 81(I)/2011, are activated, which aim to protect the Buyer
in the event that the Seller does not meet its contractual obligations provided for in
the Sales Contract.
As of December 12, 2023, the Law, no. 132 (I)/2023, came into force, which amends
the above Law and through which, the protection of the Buyer is further strengthened,
as follows:
• The Buyer is given the right, in cases where there is already a Mortgage
or other Contract, to pay the amount of the Contract of Sale to the bank
account of the Seller – to the Mortgage Lender and to transfer the
property (subject of the Contract) in the name of the Buyer, regardless of
the Encumbrances or Prohibitions, which may be borne by the
immovable property or its owner and which follow the Contract as a
matter of priority.
• For Contracts concluded after December 12, 2023, the Seller is obliged to
include as an integral part of the Contract, a Certificate of Investigation
with Encumbrances and Prohibitions of the immovable property that is
the subject of the Contract and which is not more than five (5) working
days, from the date of conclusion of the Contract.
• The Director of the Department of Lands and Surveys is given the
discretionary power to impose an Administrative Fine on the Seller and
Mortgage Lender in case of refusal to apply specific provisions of the
Legislation.
Required Documents / Conditions / Samples:
Deposit requirements:
• The object of the Contract must be registered in the name of the Seller.
• The Contract must be in writing, with sufficient information on the
parties and the subject matter of the Contract.
• The submission of the Contract must be made within six (6) months from
the date of its signing.
• A Written Statement, which is issued by the Mortgage Lender ("Type A")
or a Written Certificate of the Buyer ("Type C"), only in case the only
Encumbrances to which the immovable property is subject (the subject
of the Contract) are already a Mortgage or other Contract filed and its
registered owner is not under Prohibition. In the event that there are
other Encumbrances other than those mentioned above, the provisions
of the new legislation cannot be applied.
Documents Required:
• Application – Form D.E.129
• Original Contract duly stamped or stamped copy (with original
signatures) and with proven due stamping of the original Contract.
• In cases where, on the immovable property (subject of the Contract),
there is only an already filed Mortgage or other Contract and which
constitute the only Encumbrances to which the immovable property is
subject, as well as its registered owner, is not subject to the Prohibition:
• Written Statement – "Type A", duly signed and certified by all
interested parties (Mortgage Lender, Seller, Buyer)
or
• Written Certificate of the Buyer – "Type C", signed by the
Buyer and in the event that its presentation to the District
Cadastral Office, is not done by the Buyer, it must be duly
certified.
• Official Land Plan, signed by the Seller(s) and the Buyer(s).
• Floor plans (if it is a unit), signed by the Seller(s) and the Buyer(s).
• Solemn Declaration D.E.304 in case the seller or buyer is a legal entity. If
the secretary/representative of the legal entity does not appear, then the
signature must be is certified.
• Photocopy of both sides of ID card or passport/ARC (foreigners)
Notes:
• The deposit of the Contract is made by any of the contracting parties, i.e.
by the buyer and/or by the seller. Also, it can be done by the buyer's
lawyer or by the registered real estate agent, who has mediated for the
of a specific real estate transaction, provided that he/she has submitted
the relevant declaration real estate agent or other proxy representative
of the contracting parties.
• In the event that one of the contracting parties is a legal entity, during
the submission of the contract, it is checked whether the signatories are
binding the legal entity, based on the articles of association. Therefore, it
is recommended that a relevant copy be submitted of the updated
articles of association in cases where there is no Power of Attorney.
• With regard to the above-mentioned Types A and C, the following are
clarified:
• "Type A" is the Written Statement of the Mortgage Lender
and Seller, for which the Buyer is also informed and signed.
The Written Statement, which is issued by the Mortgage
Lender and in which a specified amount is indicated,
ensures that, in the event that the Buyer pays the indicated
amount to the Seller's bank account (which is specified in
the Written Statement), then the Mortgage Lender will
immediately issue to the Buyer, a relevant payment
certificate ("Type B") and will release the property from the
Mortgage or eliminate the Mortgage.
• "Type C" is the Buyer's Written Certificate, according to
which he/she certifies that he/she wishes to proceed with
the submission of the Contract to the competent District
Cadastral Office, without it being accompanied by Type A.