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All you need to know about signing the deed of sale

All you need to know about signing the deed of sale

The final step in closing a property sale is to sign the deed of sale in front of a notary. The notary now ensures the legitimacy of the deal and, most importantly, ratifies the change of ownership. Here is typically where the buyer pays the balance of the purchase price and receives the keys to his new home. This critical phase of a real estate transaction signifies a fresh start for the buyer and seller.

When comparing a compromise and a deed of sale, what are the key distinctions?

It is common practice to make a preliminary sale agreement prior to signing the deed of sale in the presence of a notary public when purchasing real estate. The main distinction between these two procedures is whether or not they are required: the compromise of sale is still optional, while a property transfer must always involve a notary.

Also, even if a preliminary sales agreement isn't mandated by law, real estate agents will typically still push for its creation. Because the buyer and seller have agreed in advance, have rights and duties, and are committed to them, the appointment at the notary's office goes smoothly and without any unpleasant surprises.

The notary who will perform the authentic act can be identified in the preliminary sales agreement. As such, it is easier to prepare for this final step, which will conclude all the preceding bureaucratic procedures.

It's important to remember that the notary in Luxembourg is a highly respected public official. He is the legality guarantor but does not represent any of the parties. If a buyer obtains a notary's signature, the notary is essentially promising that no prior mortgages or liens exist on the property. He also verifies the seller's claim to ownership by investigating the property's history. The notary will then take care of any necessary recording or transcription.

The notary is in charge of the following: "The notary will then perform the necessary registration and transcription"

The repercussions of putting one's signature on a legally binding document

When you have validated the preliminary sales agreement and obtained the banker's agreement for the loan, you are the owner, not when you sign the deed of sale. Indeed, the agreement binds you to purchase the property, subject to the terms and conditions set forth in the compromise (price, terms of payment, suspensive clause for obtaining the loan). After signing the document, you legally own the property.

However, until you make the final payment and have your ownership verified by a notary, you cannot legally use the property. Essentially, this means that once you sign the deed of sale and pay the agreed upon compromise price, you will have complete ownership of the property. You now have access to your brand-new residence. You're free to live there, rent it out, or put in some work now that the seller is locked out.

You are not the legal owner of the property until you take it to a notary and sign the compromise sale. The deed of sale represents your elevated position in this scenario.

Although necessary, going through a notary office comes at a price. Not only will you have to pay the notary's overhead, but also their "emoluments," as well as any applicable taxes for the Administration (such as registration fees) and transcription. Consult a real estate company for assistance in cost estimation.