Document background
The Pre Sale Purchase Agreement is a critical document in German real estate transactions, used when parties wish to create a binding commitment to a future property sale while addressing necessary preliminary steps or conditions. This document type is particularly relevant when there are outstanding matters to be resolved before the final purchase can be completed, such as obtaining financing, conducting due diligence, or resolving planning permissions. The agreement must comply with German civil law requirements, including mandatory notarization under §311b BGB. It typically includes comprehensive details about the property, parties' obligations, timeline for completion, and conditions that must be met before proceeding to the final purchase agreement. The document provides security for both parties while maintaining flexibility to address specific transaction requirements.
