What is the Promise to Sell Contract?

Jordan, in general, and Amman specifically, are witnessing a significant urban boom, with a continuous increase in the population and the number of people seeking to buy residential properties instead of renting them. On the other hand, investors and property owners plan to build properties with the aim of selling them. It can be said that financial capabilities play a major role for both the seller and the buyer. As a result, the Lands and Survey Department has introduced the promise to sell law, which ensures the buyer’s right to purchase the property while it is under construction, as well as the seller’s right to sell the property and secure the necessary financing to complete the construction and deliver the property on the agreed-upon date. Let’s discover everything related to the promise to sell contract law in the Lands and Survey Department.

What is the Promise to Sell Contract?

It is a future legal contract where the sale does not take place immediately but is set for the future. Through this contract, both the offeror and the offeree agree to enter into a sale contract in the future, to be done by mutual consent between both parties, with the requirement of registering it in the Lands and Survey Department.

What is the Promise to Sell Contract in the Lands and Survey Department?

It is a contract issued by the Lands and Survey Department between the offeror (the seller) and the offeree (the buyer) to reserve the property for the buyer’s benefit and ensure the protection of his rights. This contract is used in cases where the buyer may need to wait for a long period (more than 6 months) before receiving the property. The promise to sell contract includes the offeree paying the agreed-upon deposit to the offeror.

Promise to Sell Contract Model issued by the Lands and Survey Department

You can download and fill out the promise to sell contract model through the following link:

Promise toSell Contract Model

Why was the Promise to Sell Law introduced for real estate?

Day by day, competition in the real estate sector increases, and the number of different residential constructions such as apartments, buildings, and villas with various designs continues to rise, catering to people’s diverse needs to match their financial and living standards. In reality, people prefer owning homes rather than renting them, so they seek suitable solutions to obtain enough money to buy property through housing loans. On the other hand, property owners, when planning to build and offer apartments, villas, and houses for sale, need financial support to purchase land, design architectural plans, and start construction. Real estate developers sometimes face difficulties in financing, and they seek appropriate solutions to avoid resorting to housing loans or debts.

Therefore, the Promise to Sell Law was created to facilitate the buying and selling of properties for both the seller and the buyer. The buyer can reserve any property under construction with the consent of both parties, provided that a promise to sell contract is signed and registered in the Lands and Survey Department.

Conditions and Elements of the Promise to Sell Contract for Real Estate

The completion of the promise to sell contract is based on the following conditions:

Consent: Mutual consent between the two parties; meaning the acceptance of the offer made by one party and the approval from the other party.

Subject: The legal action both parties wish to carry out under this contract, which is the sale of the property.

Purpose: The aim of entering into this contract must be legitimate and not contrary to public policy and morals. For the buyer, the goal is to transfer ownership of the property and register it in his name, while for the seller, the goal is to receive the agreed price.

As for the elements of the promise to sell contract, they are as follows:

Type: Agreement on the specifications and types of the property and determining whether it is an apartment, villa, floor, etc. Additionally, setting the time frame, which is issued only by the offeror with the consent of the offeree.

Price: An essential element that must be agreed upon when entering into the contract.

Is the Promise to Sell Contract Invalid if Not Registered in the Lands Department?

All real estate sale contracts, including the promise to sell contract, are considered invalid if signed outside the Lands and Survey Department. The importance of registering the contract lies in safeguarding the rights of both parties – the offeror and the offeree. By registering it, the offeror is committed to selling the property at the agreed price and transferring its ownership to the offeree, delivering the property within the timeframe agreed upon in the contract.

Important Points in the Promise to Sell Law

·         · The promise to sell contract is a consensual contract, and mutual consent between the two parties is sufficient for its validity.

·         · It is prohibited to carry out any registration transaction without the consent of one of the parties.

·         · Upon the conclusion of a promise to sell contract and its registration, a liability obligation arises on the offeror’s side in exchange for a personal right for the offeree.

·         · The promise to sell contract is considered valid on a registered property if it is registered in the Lands and Survey Department, whether the property is licensed for construction on the map, has not been constructed yet, or is under construction without a permit to build.

Homes Jordan does not stop at expanding the real estate search base and guiding clients to find the property that suits them but also strives to build a knowledge base related to real estate in all engineering, legal, and financial aspects, as well as all matters related to the Lands and Survey Department.

So, don’t hesitate to contact Homes Jordan’s team, available 24/7 to answer all your inquiries and questions.

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This article has been edited and adapted by the Homes Jordan team based on the following source:

https://jordan-lawyer.com/2021/07/09/أحكام-عقد-الوعد-ببيع-طابق-أو-شقة/#_Toc76509850