When you buy an apartment off-plan, the preliminary contract is the document that governs your relationship with the developer while the building goes up. It is not a formality between two more important documents — it is the foundation the whole deal rests on until the notary deed.
It is worth reading carefully rather than skimming before you sign. Here are the clauses that deserve particular attention.
Description of the property and the completion level
The contract should describe precisely which apartment you are buying — floor, area, shared quota, layout — and the condition it will be handed over in. This is where the BDS completion clause comes in.
A clear description of BDS completion in the contract has practical weight: it defines exactly what you will find on the day you get the keys and what is left for you to finish. The more specific the description, the less room there is for disputes later.
Timelines for completion and handover
A well-drafted preliminary contract states a concrete, not an approximate, deadline for completing construction and signing the notary deed. It is also useful to have the consequences of a missed deadline spelled out.
Realistic timelines depend on the stage of construction at the time of signing — so it is sensible to weigh them against the Act 14, Act 15 and Act 16 schedule, not just a promised date.
Stage payments
In new construction, payments are usually made in stages tied to construction progress, rather than in one lump sum. The contract should clearly list each instalment, its amount and the event that triggers it.
Linking payments to an actual construction milestone rather than only a calendar date is an extra layer of protection for the buyer — you pay for progress you can see.
Penalties and liability for delay
Penalty clauses set out what happens if either side fails to meet an obligation on time — whether that is a delayed payment from the buyer or delayed construction from the developer.
The symmetry of these clauses is a good indicator of how balanced the contract is. Terms that penalise only the buyer are worth an extra question.
Advice: read carefully and seek guidance
This article describes the general logic of a preliminary contract for new construction, but it does not replace legal advice. Every contract is a specific document with specific terms.
Before you sign, take the time to read the full text and, where useful, consult a notary or lawyer who can review the conditions specific to your deal.
