How does the transfer of money occur when buying or selling an apartment?
Content
One of the most important issues when making real estate transactions is the transfer of money when selling an apartment. The law does not limit citizens to possible methods of payment - not only the transfer of cash is allowed, but also non-cash transfers, the use of various banking instruments, as well as the transfer of funds through a notary.
In the material presented, you can find out at what point it is better to transfer money in order to respect the interests of both counterparties, and which methods of transferring money are the safest.
How the transaction takes place and the procedure for transferring money
How is all the money transferred when selling an apartment? When drawing up a contract for the sale of real estate, the parties must independently determine many additional terms of the transaction, including the procedure for transferring funds for housing.
A purchase and sale transaction is characterized by sufficient freedom for partners in determining the terms of purchase and sale, so the moment of transfer can be determined as follows:
- before signing the contract and contacting the Rosreestr service to register the transaction;
- on the day of the transaction, by transferring to the seller a document confirming the transfer of money (for example, a bank letter of credit);
- after execution and registration of the transaction.
Note! Regardless of when the settlement between the parties occurs, citizens can receive money in cash or non-cash form. If a legal entity is involved in the transaction, the opportunity to receive cash is significantly limited by a limit of 100,000 rubles. Similar rules apply if a share of an apartment is sold.
If the money is transferred before the registration of the sale and purchase transaction and this circumstance is fixed in the text of the agreement, then as a result of the registration actions the unconditional right of ownership will immediately arise for the new owner of the apartment.
If the purchase and sale of an apartment occurs without transfer of money (for example, with installment payment or under the terms of a loan agreement), a pledge will be registered by force of law.
In this case, the buyer will be limited in the right to dispose of the housing until the full fulfillment of monetary obligations.
Here you can look at a sample preliminary agreement for the transaction, as well as familiarize yourself with a sample transfer and acceptance certificate for a sold apartment .
The scheme for transferring money for real estate under construction in an apartment building consists of drawing up an agreement for shared participation in construction.
In this case, the parties have the right to provide for both full payment at the time of registration of the contractual relationship, and a phased payment of funds or mortgage lending.
Safe transfer of money when selling an apartment
The process of transferring funds within the framework of an apartment purchase and sale transaction occurs in accordance with the agreements specified in the text of the agreement. Thus, the parties have the right to independently determine the safest options for transferring money under the agreement.
The secure transfer of money is carried out taking into account the interests of both parties, when the seller and buyer receive mutual guarantees of the absence of risks and negative consequences.
If, when making a transaction between close and well-known persons, it is enough to draw up a regular receipt in writing, then when drawing up an agreement with strangers, it is advisable to use other legal payment options.
Currently, the following options for mutual settlements under an apartment purchase and sale agreement are common:
- in cash before or after completing registration actions (the fact of transfer is confirmed by a mutual receipt);
- a transfer will be made through a banking institution from account to account;
- through an intermediary (for example, a real estate agency) or through a notary office;
- by transferring borrowed funds under one of the types of loan agreements;
- settlements using a safe deposit box;
- transfer of funds in the form of a letter of credit from a banking institution.
Each of the listed options guarantees that money for the apartment will be transferred or transferred to the seller, and the buyer will receive ownership of the purchased residential premises.
Cash through a notary
Almost completely safe transfer of money when making a real estate sale transaction is possible through a notary.
Even at the stage of drawing up the contract, the buyer can contact the notary’s office to open a special deposit, to which the funds for the apartment will be transferred.
Currently, through a notary’s office, the seller will be able to legally receive money after the purchase and sale of housing, since since 2015, the notary’s powers have included the opening and maintenance of deposits.
All conditions for opening and using a deposit are determined in the agreement between the buyer and the notary, and the service itself is paid and includes:
- notary fee - its amount will be significantly less if the contract was drawn up through a notary office;
- commission for transferring funds between the deposit and the parties.
In this way, the seller will not be able to receive money before registering the transaction to sell the home to the buyer.
To gain access to the money, you will need to provide the notary's office with an extract from the State Register of Unified State Register of Real Estate, confirming the fact of transfer of ownership.
Through a safe deposit box
Transfer of cash through a safe deposit box. In this case, the buyer places the required amount in the box, and receiving it will only be possible if certain conditions are met (for example, deadlines for circulation and a list of documents that the seller must submit).
The service for opening a safe deposit box and storing funds is paid; the rate must be clarified with the selected banking institution.
This option for transferring money will also not allow settlement to be made before registering the purchase and sale agreement, which will eliminate almost any risks for the buyer.
For mortgage
When drawing up a mortgage agreement, the borrowed funds will be transferred to the seller after registration steps and submission to the bank of not only an extract from the state register of the Unified State Register of Real Estate, but also information about the established pledge.
The transfer will be made in cashless form using the details specified in the text of the agreement.
The safe transfer of money for a mortgaged apartment is guaranteed by this method of transferring money, however, from the stage of registering the agreement to the moment of receiving the funds, it can take from several days to several weeks (for example, for a Sberbank mortgage, the transfer period can be up to two months).
For the seller, this option will not entail additional costs, since all transfer fees are taken into account in the contents of the mortgage agreement.
From account to account
Non-cash transfers between the accounts of the buyer and the seller are legal payment options at any time of transfer of funds - before or after registration.
Since a commission will be charged for carrying out this banking transaction, the parties have the right to determine the procedure for its distribution among themselves.
If the terms of the contract provide for a transfer after completion of the transaction, then a pledge will be registered by force of law. Removal of the deposit will be possible after the actual receipt of money into the seller's account.
Bank letter of credit
A letter of credit is a financial obligation of a banking institution to make a payment or issue cash to a certain person after submitting documents confirming the registration of the transaction.
To do this, the buyer deposits the required amount in the bank in advance, which will be returned if the transaction is unsuccessful.
Services for registration and issuance of a letter of credit are paid, and the cost of this banking instrument is quite large and can reach 30–50 thousand rubles.
Additional expenses
If any option other than cash transfer is used, the parties will incur additional costs.
They will include:
- notary office fee for deposit;
- payment for renting a safe deposit box;
- payment for services when issuing a letter of credit;
- commissions for transfers between accounts and from a deposit;
- commissions for cash withdrawals.
The amount of additional costs must be clarified with the specific institution or body that the parties have chosen for settlements. The procedure for distribution of expenses may be established by agreement of the parties.
Checking banknotes
Among the additional services that counterparties may require during settlements, we can highlight the verification of banknotes. This service is paid and is provided by any banking institution.
The justification for applying for this verification is determined by the parties themselves; it can be used for any type of payment using cash (by receipt, through a safe deposit box, etc.).
If the payment is made by bank transfer, verification of the authenticity of banknotes is not required.
Bank interest
For any banking transactions, a commission is charged, which usually amounts to a certain percentage of the transfer amount.
It is difficult to achieve significant savings on interest costs, since most banks have approximately the same prices for services and tariffs.
In practice, the buyer pays interest to the bank, since his responsibilities include the complete and timely transfer of funds to the seller.
Nevertheless, the parties have the right to determine a different procedure for distributing expenses in the form of bank interest for transactions.
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