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Sales Contract Sample

Sales Contract Sample


The best person to decide what you agree to is yourself. It is of course advisable to seek independent legal advice when purchasing a property. There are laws in Cyprus as with most other countries that supersede and overrule illegal clauses in contracts and general agreements. However, Contract Law primarily governs business transactions, so be sure of what you are agreeing to.

Following is an example of a sales agreement. This example is for informational purposes only, and as such, gives an indication of the type of contract found in Cyprus. One must in each individual case, think about the specific requirements of that situation.

An Example of a Sales Agreement

For the purposes of this example, we are going to use a two-bedroom apartment on a complex, with use of a swimming pool, for the sum of CY£55 000.00. Two methods of payment are shown. The fictitious address is: Flat 101 Block 4 Sunshine Gardens.


SALES AGREEMENT



AGREEMENT made the 2nd January 2001 BETWEEN (name and address of seller) (hereinafter called the Vendors) of the first part and (name and address of buyer) (hereinafter called the Purchaser) of the second part.

WHEREAS

A The Vendors have agreed to erect on the land (plot X) (1) sheet plan Y, Paphos, a number of houses, maisonettes and flats for sale, lease and/or exploitation by the Vendors such development to be known as "SUNSHINE GARDENS".
B The Vendors have agreed to sell and the Purchasers have agreed to buy a two-bedroom apartment (101) forming part of "SUNSHINE GARDENS" subject to the various terms, conditions, covenants and stipulations hereinafter contained as well as in the Appendix attached hereto which forms an integral part of this agreement.

WHEREBY IT IS AGREED AS FOLLOWS:

1(a) The Vendors undertake and agree to erect at their own cost in a substantial and workmanlike manner and in accordance with the drawings and specifications hereto attached as Appendix A, on the aforesaid plot a flat of two bedrooms delineated on the drawings of Appendix A and thereon marked red (hereinafter called "the Premises"), all drawings and specifications attached hereto are made a part hereof.
1(b) &SUNSHINE GARDENS& project design includes a communal swimming pool. 101 apartment has the right to use this swimming pool. The various provisions of the General Agreement will govern the operation and use of the swimming pool.
2(a) The Vendors agree to sell and hereby sell, and the Purchasers agree to buy and hereby buy the said Premises for the total Price of CY£55,000,00 (Cyprus Pounds Fifty Five Thousand only) due as shown in the following schedule of payments:
  i) CY£2,000,00 (Cyprus Pounds Two Thousand only) as a down payment and is considered as part of the advance payment.
  ii) CY£6,500,00 (Cyprus Pounds Six Thousand Five Hundred only) within a month of this contract date. This amount along with Payment 2(a)i above will be considered as part of the advance payment.
  iii) CY£8,000,000 (Cyprus Pounds Eight Thousand only) within three months as from the date of this contract. This amount along with Payments 2(a)i and 2(a)ii above will be considered as the advance payment.
  iv) CY£38,500,00 (Cyprus Pounds Thirty Eight Thousand Five Hundred only) will be settled by a bank loan. It is therefore understood by the Purchaser that this payment shall be effected within nine months, but not before eight months pass from the date of signing the Agreement.
  Alternatively, a Stage Payment Plan:
  i) CY£2,000,00 (Cyprus Pounds Two Thousand only) as down payment considered as part of the advance payment.
  ii) Payment of CY£8,000,00 (Cyprus Pounds Eight Thousand only) upon completion of concrete structure of Flat 101, Block 4 Sunshine Gardens.
  iii) Payment of CY£15,000,00 (Cyprus Pounds Fifteen Thousand only) within fifteen days of completion of wall structures, plastering, electrical cabling and all necessary piping.
  iv) Payment of CY£15,000,00 (Cyprus Pounds Fifteen Thousand) upon completion and installation of floors, carpentry, doors, and cabinets.
  v) Payment of CY£15,000,00 (Cyprus Pounds Fifteen Thousand only) upon completion and on delivery of the apartment.
2(b) The due dates of payment of the aforesaid price are the essence of this Agreement.
2(c) This Agreement will come in force immediately after the payment by the Purchaser to the Vendors, of £2,000,00 as shown in the schedule of payment, Clause 2.
3 If the Purchasers are in arrears with the payment of any instalments or part thereof, then all unpaid instalments become due and payable with interest at 8% (eight per cent) per annum from the date of default to the date of payment, provided that if a rate higher than 8% is allowed by Cyprus Law at any future time then interest will be payable at that higher rate, in addition to the above the Vendors will be entitled to rescind this agreement by written notice to the Purchasers. Provided that in case such default the Vendors will be entitled, if they so wish, to institute civil proceedings for the recovery of any instalment in arrears together with any interest as aforesaid.
4 3 In case of rescission of this Agreement by the Vendors, the latter will be entitled to sell the premises by private agreement or public auction and from the net proceeds thereof, there will be deducted all the balance of the price remaining due and payable as aforesaid together with interest and costs.
If the proceeds of sale are not sufficient to cover it the Purchasers shall remain liable for any balance.
In the case of a surplus amount, any difference will be payable to the Purchasers. Provided that any sum returnable to the Purchasers as aforesaid shall not exceed the amount paid by the Purchasers towards the agreed price.
5(a) The Premises will be completed and delivered to the Purchasers within ten months from the date of signing of this Agreement. Provided that if the Vendors are prevented from completing the Premises with the aforesaid period of ten months by an act of God, Government interference, war or warlike operations, shortage of supplies of labour or building materials, strike, extraordinary bad weather, fire or any other cause whatsoever nature beyond the control of the Vendors, then and in such a case, the Vendors, will be entitled to a reasonable extension of time and will complete the Premises as soon as may reasonable be practicable.
5(b) The Vendors shall not be held liable for damages or otherwise for any delay in the delivery of any of the common areas, as defined in the Agreement.
If the Vendors delay to complete the Premises due to their negligence then they are liable to provide similar accommodation to the Purchaser until the time of the delivery of the Premises.
5(c) As soon as the Premises under sale shall be completed according to the terms hereof the Vendors shall give notice in writing to the Purchasers inviting them to take possession of the Premises under sale within the period prescribed by the notice which shall not be less than 20 days. Upon the expiration of the period so prescribed by the Vendors the Premises under sale will be deemed to have been delivered by the Vendors whether or not the Purchasers shall have actually taken delivery and assumed possession thereof.
5(d) The Vendors will obtain a building permit and all other permits required by any appropriate authority in respect of the premises at their own cost and in the erection of the Premises the Vendors shall do all acts and things required and perform the works conformably in all respects with the provisions and conditions of such building permit and or any other permits and the provisions of any Laws Regulations or By-Laws applicable thereto.
5(e) "SUNSHINE GARDENS" may be completed in phases and or stages and the Vendors will be entitled at any time to complete it in such sequence as the Vendors choose.
6(a) As from the time of delivery of the Premises, the Purchaser shall pay all taxes, rates, fees, levies contributions and duties payable in respect of the Premises.
6(b) The Purchaser agrees and undertakes to bind by the terms and obligations of this agreement and of the General Agreement any person to whom rights in or the use or the occupation of the said premises are transferred.
6(c) The Purchaser as from the day of delivery of the said Premises shall occupy and/or use it in accordance with the provisions of the General Agreement and the relevant laws.
7 Transfer of the Premises into the Purchasers names will take place when issue of separate title deeds shall take place, that is, when these are ready by the appropriate authorities for part or the whole of the complex and provided payments due have been effected by the Purchasers and where required, the Council of Ministers has granted permission under the Law.
8 In the event that the Council of Ministers shall refuse consent to the Purchasers to purchase or refuses to permit title to the Premises hereby sold to be registered into the name of the Purchaser's nominee, then this agreement shall deemed to create in favour of the Purchasers a lease for a period of 99 years commencing as from the date of delivery of the said Premises provided that if at any time during this period of 99 years the Purchasers or their successors in title shall nominate a nominee acceptable to the Council of Ministers the Vendors hereby undertake accordingly to transfer ownership to that nominee and title of the Premises into that nominee's name.
9 All rights for future development shall belong to the Vendors and if required, the Purchasers shall be obliged to issue a Power of Attorney authorising the Vendors to sign on behalf of the Purchasers any applications and or other documents together with a waiver of all rights and or claims in relation to future phases of "SUNSHINE GARDENS".
SUNSHINE GARDENS
CONSTRUCTION DETAILS
  CONCRETE STRUCTURE AND WALLS:
The main Building structure are of reinforced concrete construction, designed in accordance with codes BS 8110ACI318M-89 and CP3.

All external and internal non-load bearing walls and partitions are of high quality hollow clay bricks manufactures in accordance with CYS 19 and plastered on both sides.

EXTERNAL FINISH:
All external walls are plastered and finished with sprits or any other finish the architect will suggest.

INTERNAL FINISHES: WALLS:
Entrance hall, living and dining area, corridor and bedrooms are plastered and painted with high quality emulsion paint.

BATHROOMS AND TOILET are lined with ceramic tiles to a height of 2.20 metres from the floor.

KITCHEN walls are painted with durable emulsion paint above a ceramic skirting. Wall area between floor and wall cabinets is lined with ceramic tiles.

CEILINGS: All ceilings are painted with a high quality emulsion paint or art-texture.

FLOORS: Entrance hall, living, dining area and kitchen is paved with ceramic tiles to a high quality finish. Bathroom and toilets are paved with ceramic tiles, verandas are paved with ceramic tiles. Bedrooms are paved with ceramic tiles.

DOORS AND WINDOWS:
Internal doors are patterned type with timber frame, faced both sides with M.D.F. wood. The doors are painted to a high quality finish.
The main entrance door is of Aluminium panned construction to special design.
All windows are sliding aluminium with single glazing.
Fitted wardrobes are constructed of suitable thickness melamine board with doors of M.D.F.
The kitchen is fitted with low and high cabinets as per architect's specifications with quality materials and high standard finish.

SANITARY FITTINGS:
Top quality sanitary fittings will be used. A stainless steel kitchen sink will be installed with top quality chrome taps.

The following purchasing prices will be applicable for the items listed below:

1. Ceramic tiles (incl. Skirting) CY£5.00/m2
2. Bath CY£125.00 each
3. WC CY£75.00 each
4. Kitchen sink CY£30.00 each
5. Bathroom mirrors CY£30.00 each
6. Furniture & fixtures CY£5000.00

The allowance of CY£5000.00 for furniture and fixtures will be used for the purchase of air-conditioning units and furniture of the choice of the purchaser.

ELECTRICAL INSTALLATION:
Electrical installation is well designed to provide ample lighting and power points, bell points, TV antenna and telephone outlets and generally executed in accordance with local Electricity Authority regulations.
Provision for A.C. will be made for the dining/sitting room and the master bedroom.

MECHANICAL INSTALLATIONS:
Cold water is stored in an individual roof tank and from there distributed to the various points around the property.
Hot water supply for the house is by electric heater unit as well as by solar panels, which are fitted on the roof of the premises.
10 The dimensions appearing on the drawing and specifications attached hereto are approximate and the Vendors undertake no responsibility with respect to the accurate extent or dimensions of the Premises provided the total area of the Premises as they appear on the attached plan are not reduced or increased by more than 3% and the Vendors undertake to transfer, subject to what is stated herein and the Agreement, the Premises as described in the separate title deed issue in respect of same.
11 Upon issue of a separate title deed in respect of the Premises and payment of the aforesaid purchase price together with any interest and all other sums due and payable hereunder by the Purchasers, the Vendors will transfer to and register the Premises in the name of the Purchasers or any other person nominated by the Purchasers free from any mortgage charge or encumbrance whatsoever.
12 The Purchasers will pay all stamp duties and the transfer fees and taxes for the transfer and registration of the premises in the name of the Purchasers or in the name of any other person nominated by the Purchasers.
13 For a period of 12 months after delivery of the Premises, the Vendors shall be responsible to make good any faults or defects which are due to bad craftsmanship or defective construction.
14 Any notice required to be served by either party to this agreement may be sent by registered post to the other party's address herein contained or at his last known place of abode.
15 The Purchasers shall not, except as provided in the clauses of the present agreement, assign any of their rights and or obligations under this agreement to any person without the prior written consent of the Vendor, such consent not to be unreasonably withheld.
16 The laws of Cyprus will govern this Agreement and the courts of Cyprus shall have exclusive jurisdiction to try any claim, dispute, or difference arising out of or in connection with this Agreement.
   

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