What is a preliminary contract?

Any sale of a condominium by the developer or the builder to a person who buys it to occupy it himself or herself must be subject to the signing of a preliminary contract by which the promisor-buyer promises to buy the condominium.

The preliminary contract must contain a provision by which the promisor-buyer may withdraw from this contract within 10 days of its signing.

The preliminary contract must also contain certain elements provided in section 1786 of the Civil Code of Quebec, under pain of nullity.

It is allowed to add in the contract an indemnity in the event of the exercise of the right of withdrawal so long as the indemnity does not exceed 0.5% of the agreed selling price.

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