The subject matter scope of the preliminary agreement for the acquisition of real estate

Experience / 05.12.2022

Lawyers of the Law Firm successfully represented a Client from the real estate development industry in discussions with vendors with whom the Clients had entered into a preliminary agreement for the purchase of an investment property, as to which the vendors were to have previously obtained a zoning decision.

The case concerned the refusal of the property sellers to consent to transfer of the zoning decision to the Client. For granting such consent, the sellers demanded from the Client a substantial amount of approximately PLN 500,000, claiming that it did not appear from the preliminary agreement that they were to grant it as part of the agreed property sale price.

After analyzing the factual and legal state of affairs, the firm’s lawyers sent a letter to the vendors, on behalf of the Client, explaining the unreasonableness of demand for payment in light of the provisions of the preliminary agreement. The letter presented the sellers with the consequences of their failure to agree to the transfer of the zoning decision to the Client, in particular with regard to their liability for damages for evading the conclusion of the real estate sales agreement.

Our actions were successful. The sellers of the property finally went to the construction administration authority and gave their consent, and the Client acquired the property, which allowed him to start the implementation of the intended investment.