When you buy an apartment in a new building, the developers give some obscure contracts. And as a result, you no longer know what you are buying, an apartment or air.
What are the ways to buy apartments and what do they mean?
Consider the most common options:
Agreement on participation in the construction financing fund. One of the safest ways to finance a new building. Construction control is exercised by the fund manager, and the developer must have all permits.
Preliminary contract of sale of the apartment
The developer signs a preliminary agreement with the seller, which undertakes to enter into a future contract of sale of the apartment.
Contract of sale of property rights
The developer sells the buyer property rights to an apartment that has not yet been built. After putting the house into operation, the buyer may, on the basis of the contract, register the ownership of the apartment.
Sometimes before concluding this agreement, a contract of sale of a derivative (security) is concluded, which gives the right to conclude a contract of sale of property rights.
Agreement on participation in a housing cooperative
Funds for the construction of the facility are raised by concluding agreements with buyers on the payment of equity contributions in a housing cooperative. Upon completion of construction, the buyer receives square meters through his participation in the cooperative.
As you can see, you can buy an apartment in a new building in different ways. Each of them has its advantages and disadvantages. When you decide whether to buy an apartment, you should analyze not only the scheme of sale, but also the contract itself, permits of the developer and his reputation in the market.