Promise to sell land in a subdivision

The unilateral promise of sale is a convention. It contains a commitment of the promising party (the developer) to sell a lot (land) under predetermined conditions. She opens a purchase option for the beneficiary (the buyer).

Unilateral promise of sale commits only the seller, the beneficiary remains free to purchase the land or not.

The signature of the promise of sale depends on the city planning authorization of the subdivision issued by the city council.

The promise of sale must include the following information:

• Seller and Buyer Contact Information
• Consistency of the ground, constructible floor area

• Delimitation of the ground resulting from a boundary
• Sales price
• Land delivery time

It also contains the following information:

• Method of financing
• Mortgages and easements that weigh on the ground
• Suspensive conditions to get a building permit...

Different deadlines may be included:

• Option Period (Beneficiary Purchase Decision)
• Time limit for fulfillment of each suspensive condition contained in the promise
• Period, if any, after the option has been exercised, allowed to sign the authentic instrument of sale

The diagnoses the following are attached to the promise to sell:

• Condition of risk and land information easements
• Soil study in areas exposed to differential ground movement due to drought and rehydration of clay soils
• Air noise pollution condition in the noise zones defined by a noise exposure plan.

Documents must be provided to the beneficiary of the promise to sell:

• Planning Permit
• Subdivision by-law, and/or specification if they exist

If the promise of sale does not mention the description of the land resulting from the demarcation, the beneficiary can request the cancelation of the sale of the land. He has 1 month from the signature of theauthentic instrument of sale to bring the matter before the court. The lawyer is obligatory.

One fixed asset allowance land may be requested from the buyer. It is paid in return for the seller's commitment to sell the property exclusively to the designated purchaser.

The indemnity is paid on the day of the signature of the promise to sell. It can't go beyond 5% the selling price.

It is logged on a blocked account. The funds are unavailable, non-assignable and elusives until the conclusion of the contract of sale.

If the purchaser withdrawsthe compensation shall be returned to him within 21 days of the day following the date of such withdrawal.

If the suspensive conditions are not met, the compensation shall be paid within three months.

If the beneficiary of the promise renounces to buy after the withdrawal period or if he does not indicate his acceptance within the period for the waiver of option, the compensation shall be retained by the owner.

When option is lifted, the amount paid is converted into down payment chargeable to the sale price to be paid.

The promise of sale can be fulfilled in the form of a privately signed document or a authentic instrument.

It must be made in 2 original copies (1 for the seller, 1 for the buyer), except when a unique original is kept by a professional (notary, real estate agent).

In the case of a privately signed document, the promise to sell is registered within 10 working days at the tax office by the seller or buyer. This registration costs €125.

Promise of sale must be notified to the buyer by letterRAR: titleContent or hand-delivered.

The buyer may withdraw from the contract within 10 days.

This period shall start on the day following 1^re presentation of the registered letter notifier the promise to sell or to hand it.

If the last day of the withdrawal period is a Saturday, a Sunday, a public holiday or unemployed person, the time limit shall be extended to 1^er working day next.

The withdrawal must be notified to the seller by letter RAR: titleContent.

If the purchaser withdraws, thefixed asset allowance which he had paid, shall be returned to him within 21 days of the day following the date of that withdrawal.