If an interested party decides to buy the property, the road to the conclusion of the sale is still long. It can take several weeks before you receive a draft of the sales contract from the notary and a promise of financing from the buyer’s bank. Therefore, it is common practice to enter into a reservation agreement with the buyer committing him to pay a deposit of between 3 and 5 percent of the purchase price https://www.thehouseguysdc.com/we-buy-houses-maryland/
However, such booking contracts are not binding. Both contractual parties can withdraw from the contract at any time.
The obligation to purchase a property exists only once the purchase contract has been signed, publicly authenticated by a notary.
To have more certainty regarding the effective conclusion of the sale, before signing a booking agreement, the seller would do well to also ask the buyer for a provisional confirmation of financing from his bank.
When there is a change of ownership of a property or land, various taxes and expenses are due: the notary’s fee, the expenses for registering the new owner in the land register, the real estate gains tax and property transfer taxes are also levied in most cantons. Adding taxes and expenses together, this can add up to a considerable amount.
To avoid unpleasant surprises, real estate sellers and buyers would do well to find out about these extras right from the start. For the seller , the tax on real estate gains can be particularly high , especially if the property was purchased a few years ago and if the purchase of a replacement property cannot be claimed which allows the benefit of a deferment of the imposition.
If a fixed-rate mortgage has to be terminated prematurely due to the sale of the property, the banks demand a so-called early repayment fee , which can amount to several tens of thousands of francs. However, this real estate gains tax compensation can be offset against the investment costs and thus reduce the taxable selling profit. This is only if the early termination of the mortgage cannot be separated from the sale of the property.