How to Make an Offer on Property and What's in the Purchase Agreement

Short answer: You typically submit a property offer in writing (email or form) with price and conditions. After agreement comes a reservation agreement and fee, then a purchase agreement (often with mortgage contingency), the price goes into escrow, and you become the owner only upon registration in the land registry.

Buying an apartment or house is probably the biggest transaction of your life and takes place in several linked steps. This guide will walk you through the entire journey from your first offer to the keys in hand. We intentionally keep legal details general — for any specific contract, it always pays to have your own lawyer or notary protecting your interests (not the seller's or the realtor's).

1. How to Make an Offer

An offer is a signal: "I'm serious at this price and under these conditions." Before sending it, check a few things:

• Verify the property. Get or look up an extract from the land registry yourself — who owns it, whether there's a mortgage, easement, or execution against it.
• Be clear on financing. If you're getting a mortgage, ideally get pre-approval from the bank beforehand. You'll know exactly how much you can actually get.
• Think through price and conditions. Beyond the amount, you negotiate the handover date, what stays in the property (kitchen, built-in wardrobes), and who pays which fees.

Submit your offer in writing — email or through a real estate office form. Always keep a copy. Oral agreements are hard to prove. Include the offered price, expected financing method (own funds / mortgage), and an estimated timeline. This gives the other party enough info to decide.

Watch what you sign

Sometimes a real estate office presents a "reservation" to sign just when you think you're expressing interest. Before you sign or send money, read what you're committing to and under what conditions you'll lose any deposit.

2. Reservation Agreement and Reservation Fee

Once you agree on price and basic terms, a reservation agreement usually comes next. It's not a special contract type in law — it's an agreement the parties make themselves. Its purpose is that the seller withdraws the property from sale and reserves it for you, and you pay a reservation fee.

What to watch for in a reservation agreement:

• Fee amount and what happens to it. The fee is usually a few percent of the purchase price. The key question is: what happens to it? Does it count toward the purchase price, get forfeited if you back out, or returned if the seller cancels?
• Who you pay. It matters whether money goes to the seller or just to the realtor as commission. Be clear.
• Timeline for the next contract. By when should the purchase agreement (or future purchase agreement) be signed?
• Exceptions and refunds. Mainly the situation "I won't get a mortgage" — see contingencies below.

A reservation agreement can bind you, so don't take it lightly.

3. Future Purchase Agreement

For complex deals (unfinished construction, waiting for land division, longer financing timeline), a future purchase agreement is used. Unlike a reservation agreement, this is a contract type directly regulated in the Civil Code.

In this agreement, parties commit to signing the actual purchase agreement under given conditions by a set date. It's more detailed than a reservation and already includes most final sale terms — price, handover date, how liens are handled. If one party refuses to sign the future agreement, the other may seek its enforcement under certain conditions. Whether a reservation or future agreement is better is worth discussing with a lawyer.

4. Purchase Agreement — What to Look For

The purchase agreement is the main document transferring ownership. It should be written and clear. Pay special attention to:

• Exact property identification per land registry data (plot number, unit, cadastral district) — not just an address.
• Purchase price and payment method — how much, when, and via which account or escrow.
• Handover date and method, handover protocol, meter readings (water, electricity, gas).
• Property condition and defects — what the seller guarantees and how hidden defects are handled.
• Mortgages and easements — whether and by when they'll be removed, or what transfers to you.
• Penalties and termination — under what conditions either party can exit.

Important: for land registry entry, officially certified signatures are usually required. Have a professional review the agreement before you sign.

5. Escrow of Purchase Price

There's a natural conflict: the seller doesn't want to transfer the property before getting paid, and you don't want to send money before you're registered as owner. The solution is escrow.

How it works:

1. You send funds (your own plus mortgage) to an escrow account with a lawyer, notary, or bank — a neutral third party.
2. The escrow holder keeps the money and releases it to the seller only after conditions are met, typically after your ownership is registered in the land registry.
3. If the deal falls through, the money returns per escrow rules.

What to keep in mind:

• Get the escrow in writing with exact payout conditions.
• Verify you're sending to the correct account (confirm the number via multiple channels to avoid fraud).
• Clarify who pays the escrow fee.

6. Contingency: Mortgage

If you're buying with a mortgage, it's wise to have a financing contingency in the agreement. This means certain contract effects take place only once you get the loan.

Practical impact: if the bank denies your loan, a well-drafted contingency lets you exit without penalty and get your reservation fee back. Without it, you risk losing the deposit even though it's not your fault.

A few tips:

• Handle the mortgage early and get pre-approval before committing.
• Watch the deadlines — by when you must provide financing proof.
• Have the exact wording written by a professional so it truly protects you.

7. Application for Land Registry Entry

Signing the agreement doesn't make you the owner yet. Ownership transfers only upon registration in the land registry based on an application for entry filed at the appropriate land registry office (in person, by mail, or electronically).

Rough process:

1. An application for entry is filed along with the purchase agreement.
2. The registry enters a note (marking that something is happening with the property) and reviews the matter.
3. After the legal period passes, it decides on the entry. The entry is recorded retroactively to the date the application was filed.
4. After entry, the escrow releases the purchase price to the seller.

Verify specific deadlines, fees, and forms directly with your land registry office or lawyer — rules can change.

Where to Find Property (and How AI Helps)

Before you even make an offer, you need to find and compare properties. More people now use AI assistants — ChatGPT, Claude, Perplexity, or Gemini can search listings, compare neighborhoods, and explain contract terms.

For AI to find property at all, the listing must be structured and the site must let AI tools in. That's what AssetLog (assetlog.ai) does — a free platform where listings (real estate, cars, jobs, even CVs) are read directly by AI assistants. For a real estate listing, one rule applies: post it where AI can find it too. In ChatGPT or Claude, connect AssetLog as a Custom Connector via https://api.assetlog.ai/mcp. Posting for AI is free and requires no signup — you confirm via email. (GEO, or generative engine optimization, is optimizing to be cited by AI search engines.)

But however you find a property, have a person review the contract. AI is great for research and questions, but legal review of a specific agreement belongs to a lawyer.

Summary of the Journey

1. Verify the property and financing, submit a written offer.
2. After agreement, sign a reservation agreement and pay the fee (watch the refund terms).
3. For complex deals, a future purchase agreement may come next.
4. Have a professional review the purchase agreement, signatures usually certified.
5. Send the purchase price to escrow.
6. If financing with a mortgage, include a financing contingency.
7. File an application for entry and become owner upon land registry registration.

This overview is general and evergreen. Always consult a lawyer or notary on specific numbers, deadlines, and contract language.

Is the reservation fee refundable?

It depends on the agreement. Usually it's forfeited if you back out without a contractual reason. But it should be returned if the seller cancels or if a stated exception occurs (typically mortgage denial). Always read the exact wording and refund terms.

What if the bank doesn't approve my mortgage?

That's why you include a financing contingency in the agreement. If drafted well, it means you can exit the deal without penalty if the loan is denied and get your reservation fee back. Without it, you risk losing the deposit regardless.

Must the purchase agreement be at a notary?

Ownership transfer generally requires just a written agreement with officially certified signatures, which you then file with the land registry. A notary or lawyer isn't legally required, but having a professional verify signatures and review the agreement is worthwhile. Confirm the exact process with a lawyer or notary.

When exactly do I become the owner?

You become the owner upon registration (entry) in the land registry, not by signing the agreement. The registry has a legal deadline to decide, and the entry is recorded retroactively to the filing date. Until then, it's good to have funds safely in escrow.

Why use escrow instead of paying directly to the seller's account?

An escrow with a lawyer, notary, or bank holds funds with a neutral party and releases them to the seller only after conditions are met, typically once you're registered as owner in the land registry. It protects both sides: you pay but don't lose the money until you're registered as owner.

How can AI and AssetLog help me with property?

AI assistants like ChatGPT, Claude, Perplexity, or Gemini can search and compare listings, explain contract terms, and draft questions for the seller. AssetLog (assetlog.ai) is a free platform where listings are read directly by these AI assistants, so your offer reaches interested parties using AI search. But no AI replaces a lawyer reviewing your specific agreement.