Posted on: 11/29/2019
Buying a property is a special kind of luxury from which we get both peace of mind and the freedom and prestige to plan our lives in perspective. It is therefore no surprise that for many people it is an investment they have dreamed of and saved for many years before they could afford it.
Recently, another way of buying a property is being offered - the off-plan property. This means that its sale takes place even before it is built or even before construction begins. The advantage to the seller of such a transaction is that the success of his investment in the construction is guaranteed. The buyer, in turn, receives a more favorable price of the property and the opportunity to pay it in time.
However, buying a property under construction is by no means less risky than buying a place in a finished building. The farther it is from its materialization, the more risks it has to invest in it. Here are some points to keep in mind if you still decide to take advantage of such a deal:
1. Who invests in construction?
Take a good look at the company implementing the project. Start with the Commercial Register, where you will see if you have the necessary funds to complete the construction work. In the event that bankruptcy or liquidation proceedings are opened, the likelihood of the project getting you into debt increases. Consulting with a real estate broker would be helpful in exploring whether the builder company and the investor company are the same person, and can often provide you with more questions about investor history.
2. What is the history of the property and the land?
Make sure that the person who sells your future property is in fact the person who currently owns it. In the Property Register you can get information about the ownership of the property from the last 10 years. You do not want to prove that you have paid for a property over which you still have no rights. This is another point that the broker is particularly helpful in case you have no experience. In the event that the transaction did not involve a person directly affected by it, it should be canceled.
3. Pay attention to the price.
We understand that a note like this may sound like "Don't cross the street, when it is red." Our considerations are that it is possible for the buyer to present things to you more appealing than they actually are, such as to announce at first glance a low price of the property without including in it the price of common premises, which by law should also pay. We encourage you to clarify this issue before signing on to a condition that does not suit you.
4. Arrange forfeits.
Provide any options that may not be in your interest and negotiate penalties for each of them - failure to meet the agreed deadline, failure to complete the construction, problems with documentation of his notarization or any kind of abuse by the investor. Consult a lawyer to make sure that you are insured with penalties against all risks.
5. Ask for a the check.
The stop-deposit is the initial amount you give to confirm your desire to buy the property. Ideally, the moment you make this installment, the property will not be offered to other applicants (especially if you have agreed to be paid penalties otherwise). However, just like any other purchase, this one must be certified before the law. It is best to pay the amount by bank transfer, but if you still pay in cash, be sure to request a cash voucher.
Buying a property is not a quick and easy task, such as buying a new TV - not only financially but legally. Every "place in the sun" should be allowed to exist in the form you want - whether you are interested in buying a summer villa, an apartment in the city or even just a pavilion on the street. However, whatever your desire is, always weigh your risks. The real estate agency is an indispensable ally in entering into a transaction, as it has all the knowledge, experience and contacts you will need to legitimize your desire for ownership.