Re-registration (purchase) of an apartment by assignment

In Ukraine, it is not uncommon to buy an apartment by assignment. For example, this is one of the popular ways to purchase real estate in a new building at attractive prices. However, it is necessary to remember that the assignment of an apartment has both its advantages and disadvantages. In this article, we will consider the features of re-registration (purchase) of an apartment by assignment.

Purchase of an apartment by assignment: features of the procedure

The basis of the assignment agreement is the replacement of the party to the transaction. In the vast majority of cases, the assignment is concluded with the participation of the developer. It is the developer who gives consent to the possibility of replacing the investor and transferring the relevant rights.

In the process of buying an apartment by assignment, you should understand that the real estate object does not yet have a legal status, that is, it is not recorded in the register. At the same time, the house itself may already be put into operation. The current legislation does not specify specific terms for registering ownership of a real estate object that has been built. That is why investors often do not register ownership for a long time. This opens up the possibility of selling the real estate object by assignment.

Important: the transfer of rights is carried out at any stage of construction. Sometimes the contract may indicate that the assignment is possible subject to 100% payment.

Thus, there are no special restrictions on the part of the developer. Purchasing an apartment by assignment involves signing a tripartite agreement: the agreement is concluded between the developer, the primary investor and the new investor.

After signing the agreement, the new owner receives:

1. The original of the main agreement.
2. Confirmation of settlements between the primary investor and the developer.
3. A receipt for payment of the specified amount of money to the primary investor.

In the future, the new owner draws up an Act of Acceptance and Transfer of the real estate object in the new building.

Please note: the developer may require a certain amount of money for permission to conclude a transfer agreement. If the seller does not have an agreement with the developer, certain problems may arise both at the transfer stage and in the future. That is why we recommend involving lawyers in checking the initial contract. Thus, you can avoid many problems in the future. The specialists of our law firm “Prіkhodko & Partners” provide the entire range of services related to the re-registration (purchase) of an apartment by transfer.

Our lawyers will check the parties to the contract for reliability. This is a guarantee of the safety of your purchase. The lawyers of “Prіkhodko & Partners” will advise you on any issue related to real estate.

Advantages and risks of purchasing housing by assignment

Acquiring an apartment based on the assignment of rights is a fairly profitable investment, provided that two conditions are met: a correct assessment of risks and prudence.

What are the advantages of this option for purchasing real estate?

1. Firstly, it is an affordable cost. After analyzing the data of real estate sales resources, we came to the conclusion that apartments by assignment can be purchased 10-15% cheaper than the market price.
2. Secondly, in the vast majority of cases, during the construction process, investors choose apartments that have a better layout, location, etc. It is easier to purchase such an apartment by assignment than to find a similar option directly from the developer.
3. Thirdly, the possibility of faster settlement. Often, such agreements are concluded before the real estate object is put into operation. Thus, the new owner will not have to wait long for the completion of construction.

However, it is worth remembering that buying real estate by assignment is accompanied by certain risks:

• Additional costs.

Some developers may additionally require payment of a commission (in some cases, the commission is 5% of the cost of the apartment).

• Unfairness of the developer.

The cause of serious problems can be unfinished construction, unresolved legal issues, objects that are under additional encumbrances, etc.

• Loan obligations.

If the property is mortgaged, the new owner automatically receives all debt obligations. That is why the lawyers of “Prіkhodko and Partners” pay special attention to analyzing the terms of the loan agreement.

Therefore, in order to avoid risks, unclear situations, overpayments, etc., when buying an apartment by assignment, it is worth enlisting legal support. Qualified real estate specialists "Prіkhodko & Partners" have the necessary experience in this area. After concluding a transfer agreement with the involvement of our lawyers, you will be protected from any risks.

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