A counterparty is one of the parties to a transaction that participates in legal and commercial interactions in the real estate sector. A counterparty may be either an individual or a legal entity that undertakes obligations under a contract. In the context of real estate, counterparties may include buyers, sellers, landlords, tenants, developers, and management companies.

Types of counterparties:

  • Individuals. The counterparty may be the seller of an apartment or house, the buyer of real estate, the tenant or the landlord.
  • Legal entities. Most often, these are developers and builders, management companies and investors participating in shared construction.
  • Intermediaries. A third party also acts as a counterparty, namely realtors and real estate agencies providing legal support for the transaction and notaries certifying contracts.

The functions of the counterparty in real estate transactions include providing complete and reliable documents for the real estate property, participating in negotiations on the terms of the transaction and signing the purchase and sale agreement based on their results.

In a lease, if the counterparty is the lessor, he is obliged to provide the leased property in proper condition. The lessor is obliged to pay the rent and comply with the terms of use of the property.

In investment projects, the developer, as a counterparty, ensures the construction of the facility and the transfer of rights to it, and the investor participates in financing the construction.