Real estate purchase agreement – formal requirements, terms and conditions, and possession
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The purchase of real property is subject to strict formal requirements in Chapter 4 of the Land Code. An agreement that does not meet the core requirements may be invalid, which makes real estate purchases more formal than most other private purchases.
Key points in brief
- The purchase document must be in writing and signed by the buyer and the seller.
- The property must be clearly identifiable.
- The purchase price must be stated.
- The document must contain the seller's declaration that the property is being transferred.
- Conditions regarding the validity of the purchase must be drafted with special care.
| Property | Complete property designation. |
| Price | Purchase price and payment schedule. |
| Transfer | Clear declaration of transfer. |
| Conditions | Financing, inspection, official decisions, or other conditions. |
| Possession | Bill of sale, final payment, keys, risk, and title registration documentation. |
Formal requirements of the Land Code
Chapter 4, Section 1 of the Land Code stipulates that a real estate purchase must be made through a written purchase document signed by both parties. The document must contain the purchase price and the seller's declaration that the property is being transferred. If the core requirements are not met, the purchase is invalid.
Conditions and inspection
Real estate purchases often include conditions regarding inspection, financing, or other events. The conditions must be clear and time-limited where the law requires it. Furthermore, the buyer should handle their extensive duty to investigate practically through inspection and documentation.
Bill of sale and final payment
The parties may use a bill of sale as a receipt that final payment has been made and to complete the transfer on the possession date. The purchase agreement and the bill of sale must be coordinated so that conditions and payment mechanics do not contradict each other.
After the purchase – title registration
The buyer must normally apply for title registration after the acquisition. The purchase documents must therefore also serve as documentation for the registration case.
Common mistakes
- That the property designation is incorrect or incomplete.
- That the purchase price is stated differently in a side agreement.
- Using unclear conditions for rescission.
- Believing that a general purchase agreement for movable property works for real estate.
- Failing to coordinate the purchase agreement, bill of sale, and payment at possession.
Frequently asked questions
Can real estate be bought verbally?
No. The Land Code requires a written purchase document with certain mandatory information and signatures.
Must the price be in the purchase agreement?
Yes. The purchase price is one of the central formal requirements.
What is a bill of sale?
A subsequent document often used as a receipt for final payment and which can confirm that the purchase has been completed in accordance with the agreement.
When is title registration applied for?
After the acquisition, the buyer must normally apply for title registration in accordance with the Land Code's registration rules.
Real Estate Purchase Agreement Template Pack
The template pack contains a real-estate-adapted purchase agreement, bill of sale, seller disclosures, and possession structure.
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Sources and further reading
Last updated: October 5, 2026. This article provides general information and does not replace individual legal advice.
