The preliminary contract stipulates the sale price. When the preliminary contract is signed, the buyer hands over to the seller a sum of money, the amount of which is freely set by the two parties. This sum is a down payment and the sale price will be offset by that amount when the final contract is drawn up.
In the event that the sale is not completed, if the party responsible is the seller, he/she must pay the buyer double the down payment. If the buyer is the responsible party, he/she loses the down payment.
The parties may also decide to include a penalty clause, stipulating that if the contract is annulled, an additional sum will be paid by the wrongful party to the other party.
It should be noted that the non-defaulting party, instead of invoking the aforementioned right for the collection of a sum of money, also has the possibility of pursuing the forced performance of the final contract via an action in a competent court of law, in keeping with legal provisions of a procedure called a declaration of intent judgment.