Buying an apartment in a new building: instructions, transaction rules, risks

The purchase of an apartment in a new building is carried out after checking the developer, analyzing his documents and partners, the progress of construction and other parameters. In parallel, before concluding an agreement, the buyer is advised to obtain information about the method of processing the transaction and evaluate its reliability, settle the issue with the bank, when attracting borrowed funds.

Buying an apartment, including in a new building, is a risk. The developer can go bankrupt, cheat by entering into several transactions for one object, delay construction. In a word, there are no less dangers than when choosing housing on the secondary market. Therefore, the main thing you need to know when buying an apartment in a new building from a developer is the list of documents that must be available without fail, the optimal form of the contract that most fully protects the interests of the buyer, the likely risks and ways to level them.

1. So, the first thing you should pay attention to when buying a new building is the readiness of the house. If the construction is active, there are builders and working equipment on the site, most of it has already been built, there is a chance that the developer will complete his work. This indicator is rather conditional, since the construction site can “curl up” at any time.

It is also recommended to evaluate the investment attractiveness of the apartment. It is expressed in a set of parameters: distance from transport links, availability of infrastructure, parking, green areas, landscaping plan. If the object is literally in the field, apartments will not be bought there due to numerous restrictions. And this means that the house can turn into a long-term construction.

1. Good reviews about developers, involved contracting companies. Usually in large cities there are the same developers that everyone knows about. Such companies are stable, they always complete construction, they do not deceive equity holders. You can ask questions about the company's activities at a personal meeting with sales managers.
2. Choice of contract. By this criterion, you can evaluate the reliability of a potential counterparty. Various schemes used by developers to evade taxes and their other frauds do not add weight in the eyes of the buyer.
3. , its documents and other parameters.

Note! The number of deceived equity holders in Russia has halved over five years (as of 2016).

Normative base

The main document that regulates the relationship between the developer and the buyer is Federal Law No. 214 dated 12/30/2004. This law contains norms regulating the activities of the developer, the procedure for concluding an agreement on equity participation in construction, and the requirements for its content.

The following information may also be helpful:

• for a sale and purchase agreement - chapter 30 of the Civil Code of the Russian Federation, which regulates this field of activity;
• preliminary agreement - chapter 27 of the Civil Code of the Russian Federation (Article 429);
• when attracting borrowed funds secured by a pledge of real estate - Federal Law of July 16, 1998 No. 102-FZ "On Mortgage";
• other provisions of the Civil Code governing individual situations (default of obligations, termination of the contract, and others).

What documents should the builder have

Art. 20 of the Federal Law No. 214 determines what documents are needed when buying a new building. Conventionally, they can be divided into two groups: those that the developer must and can provide to the buyer. In the first case, their list is made up of papers that you need to have in order to attract funds from individuals. Usually they are freely available and posted on the company's websites. The second group assumes the possibility of providing documents on demand, their disclosure is not established by law.

Table 1. Documents and information that the developer must have to provide to the buyer

What documents should the buyer have

To conclude an agreement, documents confirming the identity of the buyer and his income will be required. The second is needed by the developer to make sure of solvency.

So, the buyer will need:

• passport;
• consent of the spouse to the purchase;
• a loan agreement concluded with a bank (when borrowing funds);
• income statements.

Transaction procedure

The step-by-step instruction for the transaction looks like this:

1. checking the selected object - apartments and houses, the pace of construction;
2. developer verification;
3. preparation of documents;
4. paperwork with the bank, if it is involved;
5. signing an agreement with the developer;
6. registration of the contract in Rosreestr.

The buyer implements these procedures on his own or involves a knowledgeable intermediary - a real estate agent.

After the completion of all activities, the buyer continues to make payments on a loan or installment plan provided by the developer, and waits for the completion of construction and transfer of the apartment.

Types of contracts when buying an apartment in a new building

The execution of the transaction can be carried out by different agreements. All of them are legal in nature, but have different risks for the buyer. In general, registration issues when buying an apartment in a new building are of great importance, since they create the risk of losing money.

The ideal option is a contract of equity participation in construction. It is provided by law and most fully protects the parties to the transaction. It provides for the responsibility of the developer for violation of deadlines and other forms and methods of improper performance of obligations. In addition, the contract is registered with Rosreestr, which eliminates the possibility of double sales. .

Note! Probably, in the coming years, the form of equity participation will be replaced by project financing. According to this idea, it will be possible to buy an apartment only in a ready-made house, which will reduce the number of risks to a minimum, but increase the cost of housing.

The third way is preliminary agreements of equity participation and purchase and sale. These forms are used at any stage of construction. For example, the company has not yet received a building permit, the state expertise has not yet been completed, but money is needed to implement the project. It is impossible to conclude an equity participation agreement under such conditions, therefore, preliminary agreements are applied. They can be attributed to one of the worst options for processing a transaction. The obligations of the seller under such forms are reduced to the conclusion of the main contract in the future. If he refuses or begins to evade, then the buyer will have to force the signing of the agreement through the courts and only after that demand the transfer of ownership. In this case, the buyer contributes money by prior agreement, but acquires the right to demand not an apartment, but the conclusion of the main contract.

A significant disadvantage of all preliminary agreements is the absence of mandatory state registration. Therefore, the probability of double sales is added to the risks listed above.

There are also such methods of acquiring real estate as mutual funds, investment activities, cooperatives.

Whichever agreement is chosen, it must contain comprehensive information about the object, the timing of the transfer, price, the procedure for depositing money, the responsibility of the parties for breach of obligations, especially the developer.

The procedure for concluding an agreement

Depending on the specifics of the purchase of an apartment, the procedure for signing an agreement will differ.

Into a mortgage

When attracting borrowed funds from a bank, secured by a pledge of real estate, the formalization of relations with the developer will have the following features:

• preliminary conclusion of a loan agreement;
• obtaining bank approval of the selected object;
• obtaining a cost estimate;
• insurance.

From the developer

Buying an apartment from the developer himself is the most successful and cheapest option. The lowest price for real estate is at the stage of the beginning of construction, as the house is ready, it increases, and it becomes difficult to purchase an apartment directly without the participation of intermediaries.

In installments

As a rule, the installment plan offered by the developer is short-term (up to 1 year) and long-term. The first option assumes no interest. With a long installment plan, the buyer already has to pay interest. Their size is set by the developer himself and fluctuates around 12%.

When signing an installment agreement, the schedule for making payments, the procedure for repaying the debt (interest and principal) are indicated, as well as liability for violation of financial obligations.

Before purchasing an apartment in a house under construction in installments, you should carefully study the terms of the contract, perhaps the bank will offer a lower rate.

Registration of property rights

All agreements, with the exception of preliminary ones, but including mortgage agreements, are subject to registration with Rosreestr.

Some developers provide their clients with services to represent their interests in Rosreestr. After signing the equity participation agreements, the shareholder issues a power of attorney to employees, according to which they apply for registration of the transaction. Thus, the buyer does not need to come to the registration office.

If an agreement on the assignment of rights is concluded between two individuals, then you will have to visit Rosreestr.

It is important to remember that under an equity participation and assignment agreement, the buyer receives not the right of ownership, but the right to demand the transfer of the apartment. A physically existing object, that is, a built apartment, is registered as a property.

Risk reduction

Knowing what needs to be checked when buying a new building, the buyer will not get into a difficult situation, and small precautions will help mitigate the risks:

1. enter into an agreement with a proven developer who has been working in the real estate market for a long time. It is possible that apartments in such houses are more expensive than in others, but when buying an apartment from an unknown company, there is a risk of losing all your savings;
2. study the pace of construction, if possible, without investing in slow construction;
3. it is desirable that the house be accredited by the bank - this indicator does not guarantee complete reliability, but under such a pledge the bank will issue a loan more readily;
4. selection of the optimal form of agreement (agreement of equity participation in construction).

Important! The most common way to deceive apartment buyers! It consists in not specifying or indicating the approximate date of delivery of the house. Be sure to pay attention to the terms of the agreement! Usually in such situations, the relationship is formalized by a preliminary contract. Thus, the buyer is constantly in complete ignorance regarding the timing of the receipt of the apartment.

Additional information is available in the video:

Author: . Higher legal education: North-Western branch of the Russian Academy of Justice (St. Petersburg) Work experience since 2010. Contract law, consulting on taxation and accounting, representation of interests in state bodies, banks, notaries.
December 6, 2017 .