Whether you are buying an apartment in a new building or this housing in an old house, you need to conduct a full inspection of the seller and the property.
However, no less attention should be paid to the contract of purchase of the apartment and the terms of such a contract. So what points should be in the contract to make the transaction safer?
Buying an apartment in a new building
In the previous article, I talked about schemes to buy an apartment in a new house. However, no matter what method of investment in construction the developer has chosen, your contract must contain certain clauses to ensure a safer purchase.
The contract must specify the exact details of the land and your future apartment, in particular its area, apartment building number and floor. This will help in the future to assert their rights to the apartment, if the developer decides to sell your apartment to someone else, or give you another apartment. In addition, it is better that the contract contains references to permits, on the basis of which the developer will build a house.
Deadlines for commissioning. The contract must specify the deadline for putting the house into operation and transferring the apartment to the buyer. Most developers also provide in their contracts for the possibility of extending the deadlines, so at the moment you also need to pay attention. In addition, as practice shows, bona fide developers in their contracts provide for penalties for violation of the terms of delivery of the house. By this they show their openness and motivate buyers to buy an apartment in them.
Refund of paid funds. If the developer has violated its obligations, in particular regarding the terms of delivery of the house, then the contract in addition to penalties must contain a clause that entitles the buyer to withdraw from the contract and return the money paid. This paragraph must describe in detail the procedure for termination of the contract and the period during which the developer returns the funds.
Price fixation. In many contracts, developers provide for themselves the opportunity to adjust the contract price if you buy an apartment in installments, or if the area of the apartment will differ from the contract after the technical inventory. However, in some contracts there may be clauses that provide for the possibility to change the price depending on the dollar exchange rate, or prices for construction materials. Such items are quite risky for buyers. To get your apartment in this case, you have to pay a considerable amount.
The order of transfer of the apartment and quality characteristics. The contract must specify in what condition and with what technical characteristics the developer will transfer the future apartment. This is the presence of front doors, screed, plaster, communications to the apartment, etc. The contract must specify how the apartment is transferred, how the act of defects is signed and how the developer must eliminate the identified shortcomings.
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Buying an apartment on the secondary market
Buying an apartment on the secondary market is always a risk, and therefore the choice of the seller and the analysis of the property must be approached very carefully. Earlier we wrote about what hidden risks a buyer of such an apartment may face. However, we must not forget that the contract of sale of the apartment must meet not only the interests of the seller but also the buyer.
Characteristics of the apartment. Very often, the apartment can be redeveloped, and redevelopment is not legalized. Therefore it is necessary to pay attention to the characteristics of the apartment specified in the contract, and the true characteristics of the apartment.
Transfer of ownership. To avoid risks, real estate sellers often prescribe in contracts the condition according to which the ownership of the apartment to the buyer passes in a few days after payment. However, such a condition has risks for the buyer, as the buyer may make a payment and never receive an apartment. Therefore, it is better not to agree to such a condition, but to provide a condition according to which the ownership of the apartment passes at the time of notarization of the contract of sale of the apartment.
Contract price. Often sellers offer to indicate in the contract a smaller amount than will actually be paid, and the other part offer to pay in cash. Justify this by the amount of taxes and other payments that the seller will have to pay. It is also better not to agree to such a condition, because if the contract of sale is declared invalid, you can return only the amount that you specified in the contract.
Communal. The contract must stipulate that the seller has paid all payments related to the maintenance of the apartment, and all expenses for the maintenance of the apartment, which arose before its sale, the seller undertakes to reimburse the buyer.
As you can see, the contracts of sale of the apartment may lack the conditions that guarantee the buyer a safe deal. Also, there may be pitfalls in the presence of which it is better not to sign the contract.
To be sure that your contract protects your interests, it is better to entrust its analysis to a professional real estate lawyers.