The promise to sell and the compromise of sale?

The promise to sell and the compromise to sell are two important documents to consider when buying or selling a property. Although they are often used interchangeably, they have some important differences.

The promise to sell is an agreement between the seller and the buyer that provides for the sale of a property. This agreement can be oral or written, but it is always advisable to have it in writing to avoid misunderstandings. The promise to sell is generally used to establish the terms of the sale, such as the price and payment terms.

The compromise of sale, on the other hand, is a more formal legal document that usually follows the promise to sell. It is used to formalize the terms of the sale, including the conditions precedent to the sale. The compromise of sale may include information such as the conditions for obtaining a loan, the closing date, etc.

It is important to note that the promise to sell is generally more flexible than the compromise of sale because it does not have the same legal consequences in the event of default. For example, if the buyer fails to meet the conditions set out in the promise to sell, the seller can cancel the sale without serious consequences. However, if there is a compromise of sale, the consequences of default may be more serious for either the buyer or the seller.

In conclusion, the promise to sell and the compromise of sale are two important documents to consider when selling a property. The promise to sell is generally used to set the terms of the sale, while the compromise of sale is used to formalize those terms. It is always advisable to consult a real estate lawyer to understand the differences between the two documents and to help you make the best decision for your situation.