Often buyers of real estate property pay an advance payment to the seller prior to the conclusion of the sale and purchase agreement in order to confirm their intention to purchase the property and to carry out the Due Diligence Exercise. In order to formalize the terms of the advance payment, to fix the price of real estate, to establish the terms and other conditions of the main sale and purchase agreement, the parties conclude an agreement on advance payment. The advance payment agreement contains elements of a preliminary agreement, obliging the parties to conclude the main land plot and house sale and purchase agreement in the future. The agreement can be used for other types of property. The advance payment will be set off against the purchase price under the main sale and purchase agreement in case of its conclusion and returned to the buyer if the contract of sale is not concluded. The package includes drafts of: (i) agreement on advance payment; (ii) receipt of advance payment; (iii) acceptance certificate of documents for verification.

The seller sells a house, a land plot and the structures located thereon. The agreement stipulates that the advance payment made by the buyer in accordance with the advance payment agreement will be set off against the purchase price of the real estate. The settlement between the parties is carried out by means of a Letter of Credit, which shall be opened for the seller after the state registration of the transfer of ownership of the real estate from the seller to the buyer and the submission to the bank of the documents confirming such registration. The buyer bears the risk of accidental loss or accidental damage to the property from the moment the parties sign the deed of transfer. The package includes drafts of: (i) the Sale and Purchase Agreement for the land and the house; and (ii) the deed of transfer.