Compromise of sale, Authentic Act: when to sign?

The compromise of sale and the authentic act are two important documents in the process of buying a property in Luxembourg. They can often be confused, but they have different functions and purposes. It is important to understand the correct time to sign them in order to avoid mistakes and potential complications in the property transaction.

The compromise of sale is a contract that binds the buyer and seller to the purchase and sale of a property. It sets out the terms of the transaction, such as price, payment terms, obligations of the parties, etc. The compromise of sale can be signed at any time before the deed of sale is signed. It is generally recommended that it be signed once all the details of the transaction have been negotiated and agreed by both parties.

The 'authentic act', also known as the 'deed of sale', is a formal document that officially transfers ownership of the property from the seller to the buyer. It must be signed in the presence of a notary and registered with the Luxembourg Property Registry. The most appropriate time to sign the deed is usually after all the conditions set out in the compromise of sale have been met, such as the payment of the purchase price and the handing over of the keys.

It is important to note that signing the compromise of sale is not compulsory, but it can help to avoid potential problems in the property transaction. It allows both parties to formally commit to the transaction and clarify all the details before signing the deed. In the event of a dispute, the compromise of sale can also serve as legal proof of the terms of the transaction.

In conclusion, the compromise of sale and the authentic act are two important documents for any property transaction in Luxembourg. The compromise of sale should be signed after the terms of the transaction have been negotiated and agreed by both parties, while the authentic act should be signed after all conditions have been met. It is important to understand the appropriate time to sign these documents in order to avoid potential mistakes and complications in the property transaction.