Purchase Agreement
A purchase agreement is an agreement between buyer and seller. It typically contains a wide range of practical, agreed upon and summarized information about the upcoming transaction and the property. A purchase agreement is a good idea to prepare, as it describes information about the transaction that both buyer and seller approve. This way there's no doubt about what has been agreed between the parties. Once signed, the purchase agreement is binding between buyer and seller, but a transaction is not final until a clear title deed has been registered.
A purchase agreement can include many details that can take a long time to gather, but it's also possible to create a very simple agreement with only the most essential information. The more information included, the more can go wrong in its preparation, but on the other hand, most information and agreements are in writing, which can be an advantage if disagreements arise between buyer and seller.
Why is a purchase agreement important?
A purchase agreement is an important document that describes the transaction in its entirety. However, it's important to note that it's not legally required to prepare one. You can instead create a conditional deed with the details as conditions to be fulfilled.
We recommend creating a purchase agreement.
Preparation
Since the purchase agreement is not legally required, there is no list of information that must be included. We base it on information we recommend including in the purchase agreement, including all information from the sales presentation. As a seller, you have a duty to disclose to the buyer. This means you must inform about everything that may affect the buyer's decision. This can be simple information such as carport, greenhouse or location of the property, it can also cover municipal plans, easements imposed on the property or other things.
Basic Information
This information should be included in your purchase agreement. Some is only available to you, while other information can be obtained from public sources.
Private
This information is only known to you as the seller.
After agreement with buyer
This information is agreed between buyer and seller.
OIS (The Public Information Server)
Go to OISOn OIS you can find a range of information about your property.
Land Registration
Go to TinglysningOn Tinglysning.dk you can find information about easements.
Energy Label
Energy labeling is required by law in many cases - check if it applies to your property. Preparation of an energy label for your property can be ordered at the same time as the condition report and electrical installation report. Boligejer.dk has a list of registered building experts you can contact, including the possibility to download reports.
Condition Report
The condition report tells about the visible condition of your property and is required if you want to offer title insurance. Preparation of the condition report can be ordered at the same time as the electrical installation report and energy label. Boligejer.dk has a list of registered building experts you can contact, including the possibility to download reports.
Electrical Installation Report
The electrical installation report tells whether your electrical installation meets legal requirements and how important any found defects are. It is required if you want to offer title insurance. Preparation of the electrical installation report can be ordered at the same time as the condition report and energy label. Boligejer.dk has a list of registered building experts you can contact, including the possibility to download reports.
Approaches
Below we list the three most popular choices for preparing a purchase agreement in a self-sale.
Option 1: Lawyer
Many lawyers offer help to prepare the purchase agreement and complete the transaction. The price varies depending on the amount of work. We have included a link to a website that lists most lawyers in the country.
What should you do?
Find a lawyer who specializes in property transactions
Contact the lawyer and agree on the scope of work - in writing
Provide the necessary information to the lawyer
The lawyer prepares the purchase agreement
Option 2: Template
If you choose to use a template, you should know that there are many different templates, some free and others requiring a small payment. Some have many details and focus on property transactions while others are more general purchase agreements that can also be used for selling things. Choose your template carefully. We have included a link to a website that appears to have a thorough template for purchasing real estate.
What should you do?
Find a suitable template for property transactions
Download or purchase the template
Fill in the template with all relevant information
Review the agreement thoroughly before signing
Option 3: Other Advisor
Another advisor refers to a person who provides legal advice and is not a lawyer, e.g. a real estate agent. You may know another advisor or choose to approach a real estate agent with the purpose of getting assistance with the purchase agreement and completion of the transaction. The price depends on the amount of work and what type of advisor, so a price cannot be estimated.
What should you do?
Find an advisor with experience in property transactions
Contact the advisor and agree on the scope of work - in writing
Provide the necessary information to the advisor
The advisor prepares the purchase agreement
Good Advice
Get help from an advisor
An advisor can help you navigate the legal aspects of the purchase agreement and protect your interests.
Do as much as possible yourself
The advisor's price is often based on the time spent. Therefore, gather as many documents as possible yourself.
Read the purchase agreement thoroughly
You are legally bound to the content of the purchase agreement, so you should always read it thoroughly.
Get the agreement with your advisor in writing
Always document what your advisor will help with and at what price.
Don't be afraid to ask questions
There are no stupid questions when it comes to buying or selling a property.
Read the BBR notice carefully
As the owner of the property, you are responsible for ensuring the BBR notice is correct. You can correct most information online.
Note the deadlines
To avoid legal consequences due to a forgotten deadline, you should note them down.
Know your situation
If you are doing a project sale or selling an estate, more information or reservations are relevant in the purchase agreement.
Use the sales presentation
Depending on how your sales presentation is made, you can advantageously include it in the purchase agreement to save time.
Offer title insurance
As a seller, you can avoid being liable for defects by using the house inspection scheme.
Get bank guarantee from buyer
A bank guarantee ensures that the buyer can pay the agreed price.
Let buyer's advisor handle completion
Have the buyer's advisor handle deed registration and preparation of the settlement statement. It saves you fees.
What can we offer?
At Bolig Selvsalg we plan to offer a service where we generate a nice, well-structured and legally correct purchase agreement. In collaboration with our lawyer partner, we have built a purchase agreement template you can freely use. Read more about the service and what we expect to offer on our purchase agreement service page.