The Promessa Contract of Purchase and Sale

This is a preliminary contract drawn up to cover the purchase of any property. It is known as "promessa" because both parties effectively promise to enter into a final contract to buy and sell the property.

It is a binding document signed by both parties. The contract identifies the both parties, regulates the terms and conditions agreed, the price, the completion date and all the other relevant conditions.

A deposit is required upon signature of the contract. Generally the usual amount of the deposit is 5% or 10% of the overall purchase price, however this may vary. It is advisable that this amount should never exceed 50%.

Included within the “promessa” there will be a clause stipulating breach of contract. For example should the seller pull out of the agreement you are legally entitled to:

a) demand compensation equal to twice the amount of the deposit you paid; or
b) force him to sell it to you seeking for an order of "specific performance" of the contract. This is obtained by taking out legal proceedings against the seller in the Court and involves quite a considerable amount of time, patience and money.

 Alternative if you decide you no longer wish to proceed with the purchase, then your deposit is lost to the vendor.

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