Safe procedure for purchasing land

The procedure for purchasing a plot of land may cause confusion among people who are selling or purchasing a dacha with a plot of land for the first time for gardening, vegetable gardening, other forms of self-organization, or simply a plot of land for building a house.

The beginning of the procedure for registering land ownership is preceded by a search for the necessary options, viewing, assessment of communication connections, remoteness, access and other important factors.

The procedure for purchasing a plot of land from the owner is the same, regardless of the subject of the transaction: be it a plot of individual housing construction or a country house. Transactions concluded with organizations rather than citizens have some nuances.

Stage 1. Risk check

When purchasing land from the owner, it is recommended to check:

• the purpose of the land - it can be hidden for the purpose of a speedy sale. The danger is that the buyer may not be able to use the land as he or she expects. For example, it will not be possible to build a house on agricultural land, and forest land cannot be sold at all;
• whether there was a fact of squatting or annexation of the territory;
• presence of encumbrances;
• current cadastral passports, excluding multiple sales. In general, before a transaction, it is recommended to request an extract from the Unified State Register yourself.

Documents for purchasing a house with land deserve special attention.

The papers are checked in this order:

• compliance of factual information with documentary information (information, description, dimensions indicated in documents and actual ones must correspond);
• the consent of the spouse is an important document: a transaction made without it can be challenged;
• If a minor is involved in the transaction, the consent of the guardianship authorities is required.

Stage 2. Checking readiness for sale

The check consists of the buyer monitoring the following points:

• The buyer once again checks his desire to purchase the selected land plot.
• The amount of money he has is sufficient for settlements with the seller and payment for related services (notary, state duty, bank and others).
• The passport is valid (not expired, has no defects).
• An agreement has been reached with the second spouse on personal presence or execution of notarized consent to the transaction.

It is more difficult to carry out similar control in relation to the seller. It is advisable to obtain information in the following order:

• about the seller’s intention to sell his plot to a specific buyer (that is, you);
• on pre-sale preparation of the site and the implementation of agreements reached regarding the site (for example, remove stumps, remove construction waste, bury a hole);
• about the readiness of documents necessary for the transaction.

Completing documents when purchasing a plot of land takes time, so parties to the agreement can turn to realtors for help. Similar services are provided by many law firms. Intermediaries organize the procedure for carrying out actions, stand in queues at institutions, and arrange an appointment with a notary.

Is it necessary to involve a notary in the transaction?

Contacting a notary is mandatory when it comes to shares, transactions with minors and some others that are not related to purchase and sale. For all other transactions aimed at selling plots, notarization is optional.

The only disadvantage of notary registration is the cost of services. In addition to the established tariff (flat amount + percentage of the cost of the land), the client must pay for technical services : drawing up a contract, typing and others. The interest rate fluctuates around 0.1-0.4%, the fixed part of the amount does not exceed 10 thousand rubles. Technical services will cost 7–8 thousand rubles.

What will the client receive for this amount? The notary will check all documents for relevance and accuracy, point out any missing ones, competently draw up a purchase and sale agreement, and exclude from it conditions that are contrary to legal norms.

Registration of the transfer of ownership under a notarial agreement takes less time than under an agreement concluded in simple written form. If it is sent electronically (notaries can provide such a service), then the entry will be made in the Unified State Register within three days.

Agreements drawn up and certified by a notary are almost never challenged or cancelled . When signing, the notary verifies the identity and capacity of the parties.

The agreement and accompanying documents are stored in the notary’s archives forever. This means that if lost, the parties will be able to restore them.

Payment for notary services is usually made at the expense of the buyer. But there is also an equal distribution of expenses.

Simple written form is acceptable and applicable. Verifying such an agreement takes more time than a notarial one, and if an error is discovered, the procedure is suspended or the applicant is denied registration actions.

Stage 3. Selecting the order and method of calculations

The most popular and reliable way to pay the seller is a safe deposit box . A similar method is a letter of credit, but it is more complicated, therefore, when purchasing from an individual, it is almost not used, but is suitable for settlements with organizations.

When choosing a safe deposit box, the procedure or regulations for completing a transaction will be as follows:

1. The buyer, seller and bank will enter into an agreement to rent the locker. It specifies the grounds upon which the seller gains access to the money. The “key” is the purchase and sale agreement containing registration marks (stamps, seals of Rosreestr). The lease period slightly exceeds the period allotted for state registration.
2. After depositing money, the buyer loses access to it, so fraud is excluded. And the seller cannot collect the money until he receives a registered contract.
3. Transactions in which payment is made in cash against a receipt are practically never encountered. This method of payment has many risks associated with possible challenges to the fact of payment, receipt and other legal problems.

Stage 4. Signing the contract

The next stage in the purchase of a plot is determined by the procedure for signing the agreement. This action takes place at the notary or at the territorial branch of Rosreestr (Department of State Registration, Cadastre and Cartography Service for the subject).

Accordingly, after the bank, the seller and buyer are sent to a notary office, MFC, Rosreestr. Signing the contract is also possible at the real estate agency office.

Stage 5. Registration of the contract and transfer of ownership

The agreement, signed and possibly certified, with a package of documents and a receipt for payment of the state duty, is transferred to Rosreestr for registration actions. This stage of purchasing a land plot involves a variable procedure.

You can contact the registration authority:

• directly at its territorial office;
• through a multifunctional center;
• via the Internet, using a qualified digital signature, or through a notary;
• calling a Rosreestr specialist to the office.

Submission of the agreement and annexes does not require the personal presence of the parties to the transaction. The parties have the right to issue a power of attorney to representatives who will instead submit documents for registration and receive a receipt.

Stage 6. Receiving documents after registration

The procedure carried out in Rosreestr includes registration of the agreement and transfer of ownership of the land plot. Therefore, after checking the documents, the parties will receive a bound agreement containing notes on its registration.

See what it looks like >> Extract from the Unified State Register of Land Registration for a land plot.

Accordingly, the set of documents will be the same for the seller and the buyer: a registered agreement. The seller, having received his copy, has the right to contact the bank and withdraw the money.

Gardening and horticulture

Separately, I would like to warn those who want to buy land in SNT: it must be registered as property. The acquisition of a dacha under a book, through the chairman, by inclusion as a member of a partnership and other ways that exclude the execution of a purchase and sale agreement and its registration with authorized structures do not lead to the emergence of ownership rights. The new and previous owner's scope of powers is rather close to that of a lease. Such a plot cannot be bequeathed, and the sale will proceed in the same way as the purchase.

There are enough advertisements for the sale of a summer cottage using the method described above, both in Moscow and in other regions. Such objects are worth less than plots, the ownership of which is formalized within the framework of the law. The procedure for registering such an acquisition will cause a lot of trouble for the new owner if he wants to receive the corresponding entry in the Unified State Register of Real Estate. Most likely, the issue will have to be resolved in court.