WHAT IS A PRE-CONTRACT?
A pre-contract also known as promise on a contract or a preparatory contract, is specified in article 89 of law 153 of 1887. It is a solemn contract, which it is not legally binding. It is transitory in nature and establishes the obligation of the parties to subscribe a final contract. It is often used for the purchased of real estate properties. Requirements: It must be in writing, and it must pay stamp tax (except in purchase-sale contracts). The grantees may freely select the public notary who will authorize the registration of the private document.
WHAT ARE PUBLIC DOCUMENT REGISTRATION FEES?
Formalization of a public document on the sale of a property implies certain expenses, such as:
-Notary fees
-registration
-public welfare tax
The parts may freely establish the proportion of these expenses that each will pay. If nothing is specified in the contract, according to law it is understood that each part is to pay half.
WHAT IS A PLEDGE (ARRAS)?
It is an amount of money that one of the parties hands over the other as a pledge to subscribe and perform the contract.