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What is a preliminary contract ?

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Being the very first step in purchasing a new home or one that is undergoing construction, the preliminary contract binds the promisor-buyer and the seller. By signing it, the promisor-buyer commits to buy the property named in the preliminary contract and to pay the agreed price. For its part, the builder commits to building the designated house following the specifications outlined in the preliminary contract, to hand the property over to the promisor-buyer, and to transfer the house's legal titles to its promisor-buyer.

If you are interested in learning more on the question, please click on the following link : The preliminary contract : 5 important questions.