What needs to be included in a preliminary contract ?

The preliminary contract is signed before the purchase of a new or to be built property. To be enforceable, a preliminary contract must, contain the designation of the parties, the identification of the targeted immovable and the price offered.

 

 

 

 

 

The preliminary contract should also include the following:

  • The names and addresses of the purchaser and the vendor;
  • The description of the apartment (its address and cadastral designation);
  • The identification (if needed) of the private parking and storage portions, and  their cadastral description;
  • The purchase price offered and, if applicable, the terms of payments.
  • The superficial area of the private portions;
  • The identification and the ID number (if applicable) of the parking and storage space(s) allocated as (a)common portion(s) for restricted use;
  • The  agreed price  and, if applicable, the terms of payment;
  • The amount(s) of any deposit(s);
  • Your intent or not to obtain a hypothecary loan to finance the purchase, along with the particulars of such financing;
  • Any movable property or items included in the purchase price (for example: appliances, curtains and light fixtures);
  • The rented devices or apparatus;
  • Any  conditions suspending the contract;
  • The date of taking possession of the unit;
  • The date scheduled for the signing of the deed of sale;
  • The name of the notary before which the deed of sale is to be signed;
  • The term of enforceability of the preliminary contract, meaning the date and the precise hour after which it will become null and void;
  • The signature of both parties.

 

 WHAT YOU SHOULD KNOW! The agency, la Garantie de construction résidentielle (GCR) (the Residential Construction Guarantee), has adopted a preliminary contract form for the use of purchasers of “on plan” properties. It is in the best interest of consumers to request its use by the developer, as this document includes all the necessary protections.

 

Return to the super factsheet Preliminary Contract