Sunday , May 16 2021

Mistakes when buying a home: non-profitable agreements

With the help of experts in real estate transactions Michaela Dimitrova and lawyer Radostina Hadjieva presents the 5 most common mistakes in real estate purchase. On Friday, we presented you with the problems with the deposit deposit delay, and on Saturday – the risk of errors. Today we pay attention to key moments of purchase.

You ignore key moments of purchase

In addition to the pursuit of property, trips, communication with the bank, often buyers, fall in love with their dreams, tend to make a deal for the most attractive asset, enter into negotiations with the seller, agree to bind contract, pay deposit under conditions that the seller puts them. At this stage the sellers sell their property, recommend to the purchaser that anything with the property is in order – he has no mortgages, ownership of the property or the right of construction on the land is legally established, without litigation, and the property if it is not sold to you, Another doubt is that he is more determined. Sellers send some key documents of the potential buyer regarding ownership of the property, as well as pre-prepared pre-contract deposit agreements.

The bad scenario is next: The buyer guarantees that if the supplier / company name exists as the owner, ownership of the property is unshakable. The initial contract, for its part, is too long and unpleasant. Ending a farce of purchase as soon as possible seems a very tempting idea and we quickly sign everything supplied by the seller. You do not want to get anything that is not 100% true, do not you? So do not do it! You can do all the steps yourself until the transaction is completed. This, however, takes a lot of time not recommended. The process is very difficult, time consuming and requires extreme attention to detail as well as negotiation skills.

Implications: We make unprofitable agreements for us.

tip: Pay attention to everything – explore the property for problems, require additional documents from the seller and the property registrar, negotiate better terms, change the pre-contract, deposit agreement and notary actions remember – the contract is signed when you are sure that you can run it And when you are confident enough that the seller also has no barriers to performance, and in the absence of execution – you are secured enough with fines. And – if you do not have the nerve on all this – turn to a lawyer – expert in property law. Let the lawyer do everything and trust him if, after consulting his property and property, he has concluded that it is risky to make the investment. Do not believe the rumors that lawyers "spoil" transactions just like that for no reason. Not only should you read all the documents yourself carefully, but it is also advisable to consult a lawyer. Typically, contracts are provided by suppliers, and be sure that they completely protect their interests. Do not be afraid to negotiate and want to change certain clauses in the contract or include additional details. Ultimately, the treaty is a bilateral agreement, assuming it has to protect the interests of both sides.

Reasons for an error: Save time and money for a lawyer; You rush to buy and want everything to end; You've heard that lawyers are spoiling deals;

What do I really need to do, respectively, to assign an attorney and what are the consequences of omitting this step?

Here the possible problems are so many that this report can hardly cover them all.However, we would like to pay attention to some basic things that are missed by the mass buyer.

You buy green property, but you do not check the ownership and legal status of the land on which it was built.

– Very often, in order to obtain funding for a particular project, investors buy the land on which they plan to build, and then mortgage it and thereby acquire a working capital from the bank. The next buyer who wants to purchase a separate object in a new building thoroughly examines the condition of the building itself and the object concerned, but consciously or failed to study the land, believing that since he will not buy the ideal shares of him, there is no need to investigate its legal status. The building was built, the dream apartment is a fact, but imagine that on a nice day you get a message from PEA that a public sale is planned. Unfortunately, yes, it is possible. Often notarial acts establishing a mortgage in favor of the bank on the ground is said that the mortgage spreads on "improvements" on the ground. According to the law, such improvement is all built on the earth. In this way, the mortgage extends to the building, and therefore to your apartment. If you were studying the state of the land before you take action to buy the property, however, you would not deserve it.

– You can also find that the building was built not on long-standing land, but also on urban or state land without proper permissions. Or even more ridiculous legally – for unregulated property. In this respect, it was established in the Constitution that agricultural land can not be built, rather it is the regulation of assets, that is. Construction is permitted on them. In this case is much more likely when buying old buildings rather than a multifamily, but one of residential residential buildings built years ago at their discretion. What is the type of such construction – illegal. In order for these institutions to be accredited or installed in particular, a special procedure should be continued – to provide specific documents, in order to prove that the construction was carried out prior to 2001 and so on. In a nutshell, if you buy a house, for example, carefully examine when and how it is built and has the same building documents as needed.

– With regard to land, consider also a very relevant problem for the new quarters of Sofia, namely the sewer and the connection of buildings with respective networks. Some new quarters have developed in the capital, and it is quite logical to have problems with them since they have not been the subject of massive housing development so far. So before you buy a property in green, check whether the building is connected to the sewage network and water supply, because the property regardless of these core networks does not represent any investment, and vice versa, you will be very oppressive.

With regard to the primary contracts themselves:

– Always check the seller / investor – in most cases the seller is the construction company that you hear for the first time. Yes, it is quite normal that today it is very fashionable for the investor to create a new commercial company for the purpose of the new project. Rarely, there are cases in which an investor company keeps its name and uses every subsequent project. The establishment of a new company for the purpose of new construction creates the danger of conducting negotiations and communicating with a hollow company, behind which there are no assets. That is, it is possible that the respective company does not complete the construction, you take action to terminate the contract and claim a refund of the given and compensation from the sales company, but without a real opportunity to recover any losses that you only further damaged in line with the creditors. And in this case the law is on your side, but you actually avoid getting paid back as well as compensation just because the company you have negotiated with no assets.

– require that the contract sets deadlines in different stages of construction – we remind you that the most important steps in construction are Law 14 (rough construction), Law 15 (Capacity for construction) and Law 16 (permission to use, introduction to service). However, these deadlines are not only construction conditions, but also very important legally regarding your right to purchase. This is because Act 14 creates a transferable object, i. With Act 14 ownership acquired, so many transactions are admitted in Law 14. Law 15 in turn confirms the fitness of the site and Law 16 – that the object can be used. Very often, investors admit the buyers to the property before the act 16, and the cases in which the act 16 is not at all. And the problem here is not only that you will need to use industrial electricity, which will inevitably lead to an increase in your monthly expenses, but also that the use of non-commissioned buildings is a violation under the SPA that can lead until the competent authorities have ceased to use the site. There is enough signaling to the DNSC to activate the check, and then the results can have very negative dimensions. The same danger can be seen in buildings and buildings without action. 14 In short, lack of action can lead to the demolition of the building and lack of action. Moreover, in the second order, the mayor of the municipality orders the appropriate power supplies to interfere with the electricity supply of the building respectively. For all these reasons, it is very important to oblige the investor with specific deadlines for construction, failing to do so will drag the investor's responsibility, and he will owe you a penalty.

– Protect your rights and negotiate on a fair basis – this is especially true of investor responsibility in case of delay construction, of the steps mentioned above. Often, in the initial contract, excessive length of time given, or not restricted time limit or even time limit has been described, one of the stages of construction has been omitted. Do not underestimate in detail! In addition, an absolute oxymoron is how the investor behaves during the negotiations. If you really think, it is the buyer who is weak because the party invests the rules, and at the same time the buyer is the one who carries the greater risk of the transaction, but is the one who pays the larger amount under the contract, and in most cases using bank credit to buy green. That is, the buyer is the one who entered into two legal relationships and must be extracted between the investor and the bank pressed by both parties. By allowing himself to make adjustments to his contracts, the buyer is often "cut" the words: "There are many candidates", "You need to act quickly so we do not sell it" And so on. Whatever your name, however, always come up with the idea that you are buying something important, great, high value, and you can not make mistakes.

– Then, engage in the responsibility of the investor in case of eviction – eviction is forced legal eviction from the property acquired, as with a enforced decision determined that not you, but someone else owns your apartment. The reasons can be many, for example – it turns out that the land owners who have established the right to build your investor are not two, and three non-venturer filed a claim for the establishment of his right and after the joint owner of the land, is the joint owner of one built on it. Another example – before buying the property, you did not do the required questions and did not find that your investor entered another contract in advance for the same object, the buyer under the second contract filed a final claim and one of this claim was entered in the property registration before your transaction; Four years have passed and the case is over, the court's decision is entered in the property register and the winner of the case asks for the apartment back. What are your rights in this case – make a claim to return the selling price from your seller. But if you think about the above – because this supplier has actually set up a company for the very purpose of this project, maybe the trader has been deposed, or is so owed that the bankruptcy case has been instituted, there may be no one to claim the amounts and you lose all the investment Yours so far.

– Notice of the initial contract – we can reach the opposite situation above – you buy a pre-contract, you paid a deposit of several thousand lava, the term on the act of a notary approaching, but you understand that the property has already been sold to a third party.This third person is not responsible, He is not aware that he is not the only buyer in the pre-contract chain, in this case, what options do you have? Unfortunately, you do not have the right to claim a preliminary contract for the finalist.In fact, you have this right, but it is meaningless, On his decision, the court is required to examine whether the seller (the defendant in the claim) is the owner of the property and will not be because the property has been repurchased third party, and in this sense, the court will decide to Therefore, your only option in this case is to spoil the initial contract and claim a double payment amount, unless otherwise agreed in the contract to compensate the buyer.Not often double the size, but once, without penalties.We draw attention to the fact that Termination of contracts is also a legal procedure, and in case you decide to go to it, it is advisable to consult with an attorney about how it is done and still have a valid disqualification.

With regard to the services of lawyers when buying real estate, we recommend that you ask the lawyer for an accurate breakdown of outstanding fees and what exactly includes his services.The lawyer's help in purchasing the property may consist of a variety of services – property attribution, Negotiations with the seller, changes in written agreements, purchase of documents and more.

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