Risks of buying foreclosed real estate

Today, the risks of purchasing real estate with an arrest remain one of the most common reasons why buyers lose money. The desire to quickly conclude a выгодную deal often leads to ignoring legal nuances, which can result in serious consequences — from the inability to register ownership rights to lengthy court disputes. LC “Prikhodko and Partners” specializes in supporting such transactions and helps minimize all possible risks.

What are the risks when buying and selling real estate?

• Lack of proper experience and understanding of the transaction process. Independent purchase without knowledge of legal and practical nuances may lead to mistakes at every stage — from property verification to signing the agreement.
• Incomplete and superficial verification of documents and apartment history. There is a risk of purchasing real estate with encumbrances, debts, legal disputes, or hidden co-owners.
• Overpayment for the property. Lack of awareness of market prices and current conditions may lead to buying an apartment at an inflated price.
• Misunderstanding of the purchase and sale procedure. Violation of transaction stages, incorrect sequence of actions, or ignoring mandatory checks significantly increases the risk of financial loss.
• Influence of incompetent advice. Involving friends or acquaintances without proper expertise in decision-making.
• Incorrect handling of the deposit or its absence. Errors in the preliminary payment agreement may lead to loss of funds and inability to recover them.
• Signing preliminary agreements without proper documentation. Concluding a deal without verifying original title documents creates a risk of fraud.
• Lack of proper documentation of agreements. Failure to sign documents in the presence of witnesses or without proper legal formalization complicates the protection of rights in case of disputes.
• Conflicts with the realtor / unfair interaction. Attempts to bypass or mislead the intermediary may lead to loss of support, conflicts, and, as a result, unfavorable transaction conditions for the buyer.

Reasons for imposing an arrest on real estate

Is it possible to buy / sell an apartment with an arrest?

No, it is impossible to legally conclude a transaction involving an apartment that is under arrest. The presence of such an encumbrance in the state register effectively blocks any actions for disposal of the property, as a notary has no right to certify agreements if the property is under arrest / prohibition of alienation. Any attempts to bypass these restrictions through preliminary agreements, receipts, or advance payments create significant financial risks for the buyer.

Entering into such “informal” arrangements may result in the transaction not being registered, the buyer not obtaining ownership rights, and the transferred funds being difficult or impossible to recover.

The only safe way is to first remove the arrest, ensure there are no restrictions, and only then proceed with the transaction.

How to check an apartment for arrest before purchase?

Checking an apartment for arrest is a mandatory step before concluding any real estate transaction. First of all, it is necessary to confirm the seller’s ownership: verify documents — основания (purchase agreement, gift, inheritance) and compare them with state registry data.

The most effective way is to obtain an extract from the State Register of Property Rights to Real Estate. This can be done online, in particular via the “Diia” portal, or by contacting a notary or an administrative service center. The extract contains information not only about the owner but also about all encumbrances: arrests, mortgages, prohibitions on alienation. Additionally, it is advisable to check the seller in the Unified Register of Debtors, as the presence of debts may become grounds for imposing an arrest in the near future.

In addition, it is important to analyze the history of ownership transfers — frequent changes of owners over a short period may indicate hidden risks or attempts to bypass restrictions. It is also important to ensure there are no utility debts, registered residents (especially minors), and other legal encumbrances.

The final stage should be a notarial verification before signing the agreement, as the notary обязательно checks the registers and will not certify the transaction if an arrest is present.

Assistance from LC “Prikhodko and Partners”

LC “Prikhodko and Partners” provides comprehensive legal support in matters related to real estate purchase and the presence of arrests. Our lawyers conduct a full due diligence of the property before acquisition: analyze documents, check registers, and identify possible encumbrances and risks.

In addition, we assist in removing the arrest from an apartment — we support the client at all stages: from analyzing the grounds for imposing the restriction to interaction with enforcement authorities or the court. If necessary, you can receive a separate consultation or order full legal support of the transaction “turnkey”.

Leave a request on the website — and our lawyer will contact you shortly to offer the best solution specifically for your situation.