HOW TO BUY AN APARTMENT ON THE SECONDARY MARKET? WHAT RISKS AND WHAT SHOULD YOU PAY ATTENTION TO?

Imagine the situation. You are carefully looking for an apartment for which you have saved up almost all your life. After endless searches and thousands of options, you accidentally come across it: a fabulous apartment in a prestigious area, in a quality house, with an incredible view from the windows, a good layout and ... at such a fabulous price..

 Forgetting everything, full of emotions, you are in a hurry buy it so that in no case does it, as attractive and hot as pie, get to someone else. And only after the conclusion of an agreement, when emotions subside and time passes, not fabulous moments can emerge at all. It is somewhat reminiscent of a meeting with a bride (or groom), but now no joke and not about that. Often, after the conclusion of the sale and purchase transaction, it may turn out that the apartment is under arrest, acquired under false documents, or its real owner has appeared, who has already applied to the court to take it away from you. Therefore, before concluding real estate transactions, you need to approach with special responsibility and caution, carefully analyzing and checking everything. There are many risks, the absence of which should be checked before entering into a transaction. What is the first thing to pay attention to before concluding a transaction for the sale and purchase of real estate in the secondary market?

Sale by proxy

 If the contract of sale and purchase of an apartment is concluded not by the owner of the apartment, but by his representative by power of attorney, such an agreement must be approached with special attention. Of course, a sale by proxy is not a sentence to refuse a deal, and there are often objective circumstances that preclude the owner from arriving to sign it. However, often, a proxy sale is a sign of riskiness.

 What are the risks?

 The risk of buying an apartment under a power of attorney, registered in the name of dummies. And the real owners became victims of fraud.

The cost of the apartment

 A price significantly lower than the market price is another sign of a risky transaction. Scammers and black realtors have not gone anywhere and continue to do their business. But despite the numerous cases of fraudulent actions in the sale of real estate, buyers continue to fall into the traps of the underestimated cost of an apartment, continue to save on legal services when carrying out such transactions. However, it is worth remembering that there is no point in reducing the cost of “clean” and liquid real estate. And paying for the services of a lawyer is not money, compared to the price of an apartment or the cost of living.

  What are the risks?

 The risk of becoming a victim of scammers and black realtors, which can cost your life. Or the risk of acquiring an apartment using false documents (false court decisions, wills, death certificates, contracts, etc.) or an arrested apartment. The chances of returning such an apartment or the funds paid for it in court are scanty.

Understatement for tax evasion

 The parties to the transaction often resort to understating the value of the apartment, by indicating in the purchase and sale agreement the value lower than that at which the sale actually takes place. That is, the parties agree that in the contract they will indicate the cost, for example, 40 thousand, and in fact the buyer hands over 200 thousand to the seller. This is done in order to reduce the amount of taxes, which directly depends on the cost of the apartment.

 What are the risks?

 There are times when, for one reason or another, sales transactions are terminated or invalidated. In this case, the buyer of the apartment, after termination of the contract, risks returning only the amount specified in the contract, and not the real value that was paid to them.

History of the apartment

 A large number of previous owners and transactions with this apartment should be alarming. It is necessary to check how many times the apartment was resold and how many owners it had, the fate of these owners, the types of transactions and the basis for the sale.

 In addition, you need to check the grounds for acquiring ownership of this apartment, how it was transferred to the last owner. Was it a gift or inheritance? If the apartment is inherited, you need to check the presence of other heirs and their rights to this property.

 What are the risks?

 Frequent resale and a large number of previous owners can be a sign of fraud and front owners. A donation agreement is often recognized as fictitious, and in case of violation of the rights of other heirs, the purchase sale transaction may be invalidated.

Redevelopment

 For illegal redevelopment, liability and fines are provided. Most often, redevelopment by law is expensive. In order to make sure of the legality of the author's repair, it is imperative to check the BTI documents. This will have to be done by the buyer, not the owner of the apartment, since this does not affect the conclusion of the agreement.

 What are the risks?

 And if it turns out that the previous owner did not legally agree on the redevelopment, you will have to pay fines, destroy expensive repairs and "put the walls in place" or pay a considerable amount for the approval of the redevelopment, if possible.

The owner of the apartment

 If the health or mental state of the owner is in doubt, you need to check his authority to sign this agreement. In this case, you need to request documents confirming his mental state and legal capacity. These can be certificates from medical institutions about the state of health, the presence of a driver's license, work in relevant positions, and the like.

 What are the risks?

 If it turns out that during the transaction the seller of the apartment was incapacitated or his expression of will was not free and did not correspond to his inner will, the agreement will be declared invalid with all the ensuing consequences.

The number of apartment owners and who is registered in it

 The question of who is registered and lives in the apartment must be approached with special care and responsibility.

 It is necessary to check whether minors or incapacitated persons are not registered in the apartment, who left where after being deregistered, did not go to places of detention.

 In addition, you need to establish how many owners of the apartment, the owner is married.

 Both spouses and all its owners must consent to the conclusion of an agreement, the rights of neither person must not be violated.

 What are the risks?

 If the rights of the above persons are violated during the alienation of the apartment, the agreement may be declared invalid.

 How to prevent risks?

 Only through a thorough check of the apartment before the sale. To do this, you need to attract professional lawyers who can check the history of the apartment, the authenticity of the documents and the absence of encumbrances. A thorough check and analysis of title documents, the history of the apartment, the fate of its previous owners and registered persons, the study of certificates from registers, house books, BTI documents, passports and explications, the presence of court decisions and lawsuits, the correct drawing up of contracts and receipts - far from the entire list actions to be taken before buying or selling an apartment. The number of real estate agencies that really do this in support of transactions is not just words - you can count on the fingers of your hand. Therefore, we advise you not to save on legal services and to involve professional lawyers to conclude transactions. Paying a lawyer is not money compared to the price of an apartment or the cost of living.