How to safely buy a property?
The higher the investment, the greater the risk of its unprofitability. When we buy a property, we want to make sure that we invest our money in a real estate that is worth it. Every buyer wants to buy a property that will suit his preferences and will require as less additional investments (upgrades and renovations) as possible.
In addition to the real estate itself, a safe purchase also represents the „cleanness“ of the respective ownership and technical documentation. All these factors need to be considered when deciding on buying a real estate, but also when finding the right way to guarantee safe purchase. Therefore, to safely purchase the property, it is recommended to follow the tips below.
Collect information using reliable sources about the process of purchase and sale
It is crucial to inform yourself about the real estate itself, the conditions and all the necessary steps of its purchase, to not endanger your investment. The buyer's decision to purchase the real estate heavily depends on the collected information.
Before you start your real estate search process, it is advisable to inform yourself how the procedure of purchase and sale is being implemented. Buying a property is not the same as buying a grocery in a store where it's just enough to take the product and pay it at the cashier. It is a complex process that requires taking various steps that precede and follow the signing of a purchase contract.
When conducting research on the procedure itself, the sources of information and the channels used in conducting the research are important as not all sources are equally reliable. Most information can be collected over the Internet using the Common Land Registry and Cadastre Information System, which represents a unique cadastre and land register. Through this system all the interested can collect information on the ownership structure of property and its location in the space, among other things.
Also, verified information can be found on the official website of the building offices, the municipalities and the relevant ministries, the Ministry of Justice and the Ministry of Construction and Physical Planning. For further clarification, you can always visit those institutions who will be happy to answer your queries.
Consult an expert
Information can be collected personally, by conducting own research, but also by using the services of real estate professionals. You can contact a person with the experience that you trust or a specialized real estate agency. Most customers are not familiar with the functioning of the real estate market and the required documentation. Often happens that buyers wrongly interpret the documents and need expert help to ultimately buy the real estate.
Real estate agencies employ professionals who find and sell real estate on a daily basis and are familiar with the movement of real estate prices on the market, tax and other legal regulations. They offer their clients the properties only after they have thoroughly checked all real estates, not only by checking all accompanying documentation, but also by doing field work to ensure that the real estate is in the same conditions as stated in ownership and technical documentation. Throughout the process of buying a real estate, the agencies advise their clients and conduct negotiations with the opposite side on their behalf.
As a buyer, by hiring a real estate agency, you will save a lot of time and money as they will take all the necessary administrative procedures for you and you will be assured that their services will be professional and legal. You can read more about the benefits of hiring real estate agencies here.
Carefully review the property
It is natural that you want to see something before you buy it. Although online sales are becoming more and more popular, the same trend is not present on the real estate market. It's not enough to see the property just on the picture to make sure it suits your needs. Every property should be carefully viewed live.
No real estate is perfect, there are always some drawbacks, just the question is how much they are expressed and if you can notice them. The more time you take to look at its rooms and other elements, you will gather more information about its current status. It's not enough just to take a look but to pay close attention not only to its review, but also to ask any questions that interest you to the person who sells it or shows it to you.
In this way you will be convinced that you have reviewed the property well and that you have taken all the factors into account before making a purchase decision. If you notice any deficiencies or potential disadvantages have not yet come to the light since it is a newly built property, you can also contact a specialist in the field of construction.
The experts in the construction industry will surely find out about the shortcomings of the real estate beforehand and will give you their opinion to help you to determine the rentability of your investment. No one wants to realize too late that big additional real estate investments are needed. This error is most commonly caused due to inadvertent real estate review and has serious consequences for its buyer.
Check the owner's and technical documentation carefully
In addition to each property, the related ownership and technical documentation is attached. The ownership documentation shows the type of the ownership of the real estate, whether it is self-ownership or some form of co-ownership. For secure purchase it is essential that this documentation is proper, all co-owners should agree with the sale of real estate in order to realize the buying process.
Also, the ownership of certain properties may be burdened with the pledge of the bank and the buyer should undertake the procedures necessary to timely pay off the remaining debt to the bank in order to erase the burden of real estate from the land registry.
In the case of technical or construction documentation, key documents are construction and use permits. The real estate condition specified in the construction and use permit must correspond to its condition in reality in order to prove its legality. Otherwise, the property was illegally built. In order to avoid legal problems, it is necessary to check all the ownership and technical documentation related to the property.
Often, sellers are not aware of the problematics of their documentation or often are not interested in its "resolving" and want to transfer all the burden to the buyer. If you are not familiar with such situations and you are not an expert, you may find yourself in a situation where you will need to devote time and money to arrange the documentation.
For this reason, you can contact the real estate agency that will thoroughly check the suitability of the ownership and technical documentation before offering you a property that would interest you as a buyer. In this way you will be sure that the property you are considering has secured ownership and that its legality is preserved. You can read more about the features of the ownership and technical documentation that ensure that the property is suitable for sale and the type of documentation itself depending on the year of construction of the property here.
Think twice before making your own purchasing decisions
They say that the morning is smarter than the evening and every decision needs to be taken with cool head. Sometimes we are so enthusiastic about something at first glance and we feel the urge to buy this product immediately, without thinking. Such actions in case of real estate purchase may have fatal consequences. Especially in the real estate market where it's not all what it seems. The property can be in excellent conditions, in an excellent location, but does not have to mean that its documentation is proper. As a real estate buyer, you should never make such quick decisions. You have to consider all the factors that affect the security of real estate purchase.
In addition to financial loss, bad decisions may also lead to legal consequences, especially if you purchased a property that is not legally built and its ownership is not regulated. If you have any doubts about the property itself, do not hesitate to seek professional help. Deep thinking before making a purchase decision will ensure that you buy the property from your dreams in a safe way.
Ensure secure implementation of the sale and purchase procedure
The ultimate step after you informed yourself of the buying procedure, carefully reviewed the property, checked the ownership and technical documentation well and considered the rentability of the investment itself, is the implementation of the buying and selling procedure. As in the previous steps, it is important to ensure that the implementation of this procedure is safe. In this case, it is advised to use the services of a licensed real estate agency or attorney's office to ensure that the procedure itself is carried out in the correct manner.
There are various ways in which the buying process can be carried out, among which the most common are two ways. The first is the conclusion of a pre-agreement on the sale of real estate. In scope of this type of agreement, a prepayment is paid in the amount of approximately 10% of the contracted purchase price. In the pre-agreement are included; the basic land registry data on the property (cadastral municipality, particle number, number of land registry file in which the property is listed), the real estate description (address, total surface, description of the premises, and in case of an apartment the floor and its number), property price and the date of conclusion of the final contract. The buyer is obligated to pay the deposit to the seller. In case the buyer abandons the sale, the seller keeps the deposit. In opposite situation, the seller must pay the buyer a double amount of the deposit.
Another way of sale conclusion is to sign a purchase contract and pay the purchase price in full immediately upon agreement on the purchase price, terms and conditions of purchase between the buyer and the seller. For the purpose of drafting a pre-agreement and / or purchase contract, it is recommended to use the services of a legal entity of trust - a lawyer or a licensed real estate broker to ensure that you as a contractual buyer are well protected and to avoid potential fraud.
Both types of documents can be verified with a notary public. However, the pre-agreement on the sale of real estate is in principle not verified and as such has the same legal force, while the final purchase contract must be certified by a notary public. You can read more about the implementation of the buying and selling process here.
If you follow all of the above steps and tips, the risks of unprofitability of the investment will not only be drastically reduced but will in most cases be eliminated. You will ensure that the property that suits your wishes and preferences is purchased in a safe and legal way.