Compelling Delivery of Property Under a Preliminary Sale Agreement
A sale agreement is legally significant because it results in the transfer of ownership.
The higher the value of the subject matter, the greater the legal sensitivity and importance of the transaction. Real estate transactions, due to the high value of property, require particular care.
In a property transaction, the seller is obligated to deliver possession of the property to the buyer on the date agreed by the parties. If the seller, for any reason, refuses to hand over the sold property, the new owner or buyer may file a civil claim to compel delivery of the property against the seller.
Conditions for Compelling the Seller to Deliver Property Based on a Preliminary Agreement
As noted above, where the parties have specified a delivery date, and the seller refuses to deliver the property on that date, the law allows the buyer to pursue a claim seeking a court order compelling the seller to deliver the property.
A key question arises when the transaction is concluded through a preliminary agreement or an informal document commonly referred to as a preliminary sale agreement, rather than a registered official deed. Some argue that under registration laws, only the person whose name appears on the official registered title is legally recognized as the owner. From this perspective, since a preliminary agreement does not constitute an official transfer of title, a claim to compel delivery of property would not be admissible.
In other words, because a preliminary agreement is considered an ordinary private document, this group views it as merely a commitment to complete a property sale in the future, rather than a finalized sale contract.
They argue that compelling delivery is a consequence of a completed sale. Therefore, a commitment to sell in the future should not be treated as a commitment to deliver possession.
Based on this approach, the claim that should first be filed is a claim to compel execution of the official deed, and only afterward may a claim to compel delivery be pursued.
In contrast, some judges rely on principles of the Civil Code that recognize the validity of agreements between parties and consider preliminary agreements legally binding. Under this view, the preliminary agreement has legal effect between the parties and cannot be disregarded.
Legal Consequences of Failure to Deliver the Property
If the seller fails to deliver the property on the agreed date, the buyer may pursue the matter through the court by filing a claim to compel delivery.
If compelling delivery becomes impossible, the buyer generally retains the right to terminate the transaction and recover the purchase price paid.
Competent Court for a Claim to Compel Delivery of Property
The competent court for this claim is the civil court located in the jurisdiction where the property is situated. The buyer must submit the petition along with the supporting documents.
What Is a Preliminary Sale Agreement?
A preliminary sale agreement is an arrangement under which the parties undertake to perform a specific act in the future. It is generally considered an ordinary private document. Under such an agreement, the buyer undertakes to purchase the property at a later time, and the seller undertakes to sell it to the buyer.
Accordingly, a preliminary sale agreement is not identical to a final sale contract. Although it may be binding and enforceable between the parties, it does not carry the same legal effect as a sale concluded through an official deed with formal registration.
Frequently Asked Questions about Compelling Delivery of Property Under a Preliminary Sale Agreement
In a real estate transaction, the seller must deliver the property to the buyer on the date agreed by the parties. If the seller refuses to deliver, the buyer may file a civil claim seeking a court order compelling delivery of the property.
Although a preliminary sale agreement is an ordinary private document, some judges consider it legally binding and accept claims to compel delivery. However, some courts hold that the buyer should first file a claim to compel execution of the official deed and then pursue delivery of the property.
If the seller does not deliver the property on the agreed date, the buyer may seek a court order compelling delivery. If delivery cannot be compelled, the buyer generally retains the right to terminate the transaction and recover the purchase price.
The civil court in the location where the property is situated has jurisdiction over this claim. The buyer must submit the petition together with the supporting documents.
A preliminary sale agreement is an ordinary private contract under which the parties undertake to complete the purchase and sale in the future. While it can be binding between the parties, it does not have the same legal standing as a finalized sale executed through an official deed.
Some courts treat a preliminary sale agreement as a binding contract between the parties. In contrast, others emphasize that delivery obligations typically follow a completed sale through an official deed. This difference in interpretation results in varying judicial approaches. What does compelling delivery of property under a preliminary sale agreement mean?
Can a claim to compel delivery be filed based on a preliminary sale agreement?
What are the legal consequences if the property is not delivered?
Which court has jurisdiction over a claim to compel delivery of property?
What is a preliminary sale agreement and how does it differ from a sale contract?
Why is the legal validity of a preliminary sale agreement sometimes disputed?
