Preliminary Agreement

Pursuant to Art. 390 of the Civil Code

§ 1. If a party obliged to conclude a final agreement evades conclusion thereof, the other party may demand remedy of any damage it suffered by counting on the conclusion of the final agreement.

§ 2. If, however, the preliminary agreement meets the requirements on which the validity of the final agreement depends, especially requirements as to form, the entitled party may demand conclusion of the final agreement.

The condition for concluding an agreement transferring the ownership of real estate is to maintain the form of a notarial deed drawn up before a notary public. A preliminary agreement concluded in the form of a notarial deed entitles both the selling party and the buying party to seek the conclusion of the final agreement by way of court proceedings.

A preliminary real estate sale agreement concluded in the form of a notarial deed may be the basis for entering a claim for the conclusion of a final agreement (on the transfer of the real estate ownership) into section 3 of the land and mortgage register kept for a given real estate.