About what a buyer needs to know when buying an apartment

When making real estate transactions, the question often arises: what does an inexperienced buyer need to know when buying an apartment?! It is necessary to follow the algorithm of actions, carefully check the accompanying documentation or, if possible, involve a qualified specialist in supporting the transaction.

In a new building

When analyzing the options, the buyer needs to evaluate the merits of buying an apartment in a new building:

• the price per square meter is lower than on the secondary market;
• the object has no legal history;
• it is possible to apply for an installment payment provided by the developer (more common if the property is in the status of construction in progress).

Possible disadvantages of purchasing an apartment in a new building:

• high costs for repairs (as a rule, living space is sold in a “draft” version);
• the likelihood of construction being suspended;
• duration of the procedure (affects both the procedure for collecting documents and possible occupancy due to the timing of commissioning).

To eliminate potential problems, it is necessary (if we are talking about purchasing housing under construction):

• get acquainted with information about the contractor leading the construction of the facility (constituent documents, license, reviews, competitiveness, time of existence on the market);
• personally visit the construction site;
• provide in the contract a corresponding clause on the contractor’s liability for failure to meet construction deadlines.

For a mortgage

Buying an apartment with a mortgage comes with some advantages that a potential buyer should know.

Advantages of buying an apartment with a mortgage:

• verification of the seller’s integrity: the bank can conduct appropriate inquiries and identify the credit history of a specific entity, on the basis of which preliminary conclusions will be made about the reliability of the counterparty;
• additional verification of documents: the legal department of the credit institution will conduct a legal analysis of all papers presented by the seller for their compliance with legal requirements, content, completeness of information, and reliability;
• direct contact with a large sum may be excluded: the bank, having approved the transaction, has the right to pay for it through a non-cash transfer to the account of the owner of the living space, which will eliminate the risks of unlawful encroachment by third parties;
• authorized bank employees will assess the condition of the apartment and other factors affecting its cost per square meter in order to exclude fraudulent actions by the parties to the transaction and excess of the redemption price.

Features of mortgage lending:

• the object will be pledged to the credit institution until the obligation is fully repaid;
• it is necessary to carry out annual insurance of the object;
• transactions related to the alienation or rental of housing can only be carried out with the consent of the creditor;
• It is prohibited to carry out re-equipment or redevelopment.

On the secondary market

To buy a one-room or two-room apartment from offers on the secondary market, you need to be aware of some risks, including:

1. Legal risks when buying an apartment (associated with the multifaceted nature of legal relations, the need to follow a step-by-step approach, check the “purity” of the procedure and its compliance with legislative regulations, which requires experience in this area).
2. Technical risks (associated with hidden problems of the living space and its non-compliance with sanitary and epidemiological requirements, which can only be identified during long-term operation).

You can find an apartment to buy on the secondary market and at the same time minimize risks in the following way:

• involve a realtor or lawyer in the procedure;
• carry out additional notarization of all papers;
• make copies of all documents;
• insist on drawing up a transfer and acceptance certificate, with the help of which it is possible to challenge the transaction if significant problems with the housing are identified.

How to check the history of an apartment

History will allow you to learn about all the legal facts that happened to real estate. You should find out about it before purchasing an apartment.

Using an extract from the Unified State Register you can find out:

• how many times has the property been alienated (too frequent resale raises suspicions about the legal impurity of the property or non-compliance with living conditions);
• the presence of arrests and bans on transactions;
• the way of acquiring an apartment by the current owner (as a result of purchase and sale or through a free transaction);
• the presence of disputes and how long ago they arose (if more than 3 years have passed since the last alienation of the property, the buyer should not worry about challenging the transaction by third parties).

An extract from the register can be obtained independently by the entity interested in the purchase. To do this, you need to make a corresponding request and pay its cost in the amount of 200 rubles.

The absence of information about the apartment in the register indicates that it was transferred to private ownership through privatization until 1998, after which no transfers of rights in relation to the object were carried out. This basis allows us to judge the complete “purity” of the transaction.

We check the quality of real estate

When purchasing a new apartment, its quality is of fundamental importance. The inspection can be carried out by assessing the documents issued by the BTI to identify illegal redevelopment of the facility (even minor reconstructions that involve changes to the main walls and partitions must be carried out with the permission of the local self-government body, otherwise they become an administrative offense).

The new owner, when identifying illegal redevelopment, may face the following problems:

• difficulty in legitimizing them;
• imposing a fine or obligation to restore the previous layout (if it is impossible to legitimize it a priori, causing damage to load-bearing structures).

When purchasing real estate, you need to know for sure how accurate the information was provided to the buyer by the seller.

How to check the seller of an apartment

You can check the owner when selling an apartment in one of the following ways:

1. Using the official FMS portal, you can find out the authenticity of the seller’s passport.
2. Require the provision of a certificate confirming the absence of mental disorders and addictions that lead to changes in consciousness and disrupt the adequate perception of the essence of one’s actions.
3. If the transaction is carried out by an authorized representative, it is necessary to evaluate the power of attorney issued by the owner.

The power of attorney must have the following components:

• notary form and corresponding marks of registration by an authorized person;
• an exhaustive list of powers delegated to him;
• indication of the validity period;
• date of compilation, signature;
• information about the authorized representative and the entity whose interests he exercises (the owner of the apartment).

Verification points such as legal capacity or marital status may not always be informative and influence the completion of a transaction.

How to exclude third party claims to an apartment

Practice shows that ignorance of the rights of third parties to the purchased living space can provoke a challenge to the transaction or its recognition as invalid.

Problems may arise:

• if there are minor children registered;
• in the absence of consent from other co-owners (owners of shares have the right) or the legal spouse of the seller;
• when registering persons recognized as missing or who have not lived at the specified address for a long time, but who have not been deregistered.

The object should be checked to exclude claims from third parties:

1. By obtaining an extended extract from the house accounting book.
2. Requesting notarized consent from other property owners to alienate the property.
3. Providing consent from the guardianship and trusteeship authority to respect the rights and interests of the minor.

List of documents when purchasing an apartment on the secondary market:

1. Passports of the parties to the transaction.
2. Preliminary agreement (not a mandatory document, but allows to ensure the validity of the transaction).
3. Receipt upon acceptance:
   1. Parts of the amount according to a preliminary agreement.
   2. Funds for the remaining redemption value of the property.
4. Title documents for the object:
   certificate of registration of rights;
   a document serving as the basis for an earlier acquisition of an apartment by the current owner.
5. Technical plan and passport (must be issued and approved by BTI);
6. Consent to complete a purchase and sale transaction:
   1. From the husband or wife of the seller.
   2. From the buyer's husband or wife.
   3. From other co-owners of the property.
7. An extract from the Unified State Register confirming the absence of encumbrances on the property.
8. A certificate from the management company, utility and resource supply services confirming the absence of debts.
9. An extract from the house register regarding the registration of other persons at the requested address.
10. Permission from legal representatives (if the seller of the property is a minor).
11. Agreement on raising borrowed funds (mortgage), installment payment.
12. Guarantee agreement (if provided for in the loan agreement).
13. Certificate from psycho- and drug dispensaries, allowing to establish the full sanity and legal capacity of the seller.
14. A court decision to remove encumbrances or prohibitions on real estate transactions (if the data from the Unified State Register is not up to date, appropriate adjustments have not been made).
15. A request from the Housing Policy Department (valid in Moscow) to confirm the owner’s rights if there is no information in the Unified State Register.
16. Power of attorney for the right to represent the interests of a party to a transaction.
17. The act of acceptance and transfer.
18. Receipt of payment of the fee for carrying out registration actions with housing.

Tips for buying an apartment

Most potential property buyers prefer to choose the secondary market.

The advantages of purchasing any apartment for a resale buyer are:

1. There is no need to wait for the construction of the facility to be completed.
2. Lower costs for cosmetic or major repairs.
3. A proven resource supply system (by interviewing neighbors you can make sure that the temperature regime of central heating, water supply and uninterrupted operation of utility systems are observed).

Tips when concluding a deal to buy an apartment:

1. Inspect the apartment in person and during the daytime.
2. Buying an apartment in winter allows you to determine the quality of heating.
3. Reflect in the contract only the actual purchase price of the property, so as not to encounter fraud when purchasing an apartment or unfavorable legal consequences:
   1. If the transaction is declared invalid, the parties will be required to return what was previously due, then the buyer will receive only the amount specified in the contract.
   2. An undervalued property may arouse suspicion on the part of the credit institution that issued the mortgage and lead to the cancellation of the agreement.
   3. The value of the apartment directly determines the size of the property tax deduction, which the buyer may not receive if the real indicators are underestimated.
4. When choosing a living space, try to view no more than two options per day.
5. Communication with neighbors will make it possible to verify the integrity of the counter-party and the compliance of the object’s declared advantages with the real state of affairs.
6. Much attention should be paid to the technical documentation of the facility:
   1. Compare the date of issue and the validity period of the document.
   2. Compliance of the interior furnishings of the apartment with its technical plan, since unauthorized redevelopment can lead to problems for the new owner.

In order to become the purchaser of an apartment and not encounter legal and technical delays, you should carefully check the integrity of the seller, the compliance of title documents with legal regulations, and the absence of encumbrances and claims from third parties on the property.