Reservation contract for a pre-construction unit

AuthorJules RimbaudDateNovember 8, 2022

What is a reservation contract or a promise of sale in real estate development?

To start the reservation contract or the promise of sale acts as a preliminary contract. It seals the agreement between the property developer and the buyer during the real estate transaction. This is a version prior to the signing of the authentic deed of sale.

Why is the reservation contract important for real estate development and construction?

It is recommended to sign a contract between the developer and the buyer to reserve a pre-construction unit. The contract is proof of an agreement between the two parties and means that both parties understand what they are responsible for. In this way, the necessary clarifications are made and if something goes wrong, there is a written record that protects you and can be consulted. For 4U Real Estate Firm, the reservation contract is essential because having an agreement is important, but it must be written and signed by the parties!

What is the content of this reservation contract?

The reservation contract indicates many details about the pre-construction unit. For studios, apartments, penthouses, houses, villas for sale off plan, it is important that the contract specifies certain information, in particular:

– The building permit;

– Unit plans;

– The sale price ;

– The payment structure.

In the majority of real estate development and construction projects presented by the 4U Real Estate Agency in the Caribbean, there is no possible work that the buyer must provide, apart from the decoration of the apartment and the purchase of furniture

As a buyer, what information should we provide?

When you want to buy your unit off plan, you will need to provide certain information to the 4U Real Estate Firm. If you wish to buy in your own name, you will need to provide us with a copy of your passport, your residential address, your email, your telephone number and of course the unit you would like to buy. It is also possible for you to buy through a local or foreign company, in this case you will also have to provide us with the company papers.

Should we specify the use of a mortgage for our off-plan purchase in the contract?

The 4U Real Estate Firm recommends that you include in the reservation contract a condition precedent of real estate credit. The advantage of including such a clause will allow you to give up the purchase of the unit off plan if you do not obtain the mortgage. On the other hand, if the credit is accepted, the sale becomes final. However you should provide the developer with a mortgage denial letter issued by a bank in Sint Maarten. In real estate development, the number of potential loans is limited by the developer, so you will have to be one of the first buyers to benefit from such a clause.

When do we get our title deed ?

The transfer of ownership is made when the buyer and the developer have fulfilled their obligations. For the real estate developer, it is to build and deliver the unit in accordance with the conditions provided for in the contract and for the buyer to respect his obligations. The signing of the final sales contract takes place at the notary, who will issue you your title deed.

Conclusion :

To conclude, the reservation contract is an agreement of will between the property developer and the buyer. It allows you to set the obligations of the parties, the conditions of sale, and will allow you to avoid misunderstandings, the unspoken and to know clearly the conditions of purchase of your unit. We advise you to be accompanied by a qualified real estate agent specialized in this very complex field of real estate development in the Caribbean. The 4U Real Estate Firm will be a major partner for your acquisition.