Purchase of apartments under construction make up a large share of the total number of transactions on the primary real estate market. This is due to a number of reasons:
- regarding small prices per square meter of real estate;
- elite areas;
- possibility to pay installments for the apartment in installments.
All this is beneficial for the majority of city dwellers, so investing in a new building is a good way not only to purchase property at a price lower than the market price, but also to make money from the resale of the apartment or renting it out. In this connection, there was a need to determine exactly what rights the investor receives, as well as to come up with a way to regulate the relationship between him and the developer. This is due to the fact that the investor who invested in the construction does not and cannot have ownership rights to the object under construction. That is, until the building is entered, it is considered a construction site, and the person who is the customer under the contract is the owner of the object. And an investment contract or a contract for the purchase and sale of property rights to real estate is concluded between the developer and the investor.
See also: Renting an apartment: how to write an ad correctly?
This is a document that regulates the relationship between the investor and the construction customer. Based on it, the investor gets the right to become the owner of the property in the future, when the building is completed and put into operation. It would seem that everything is quite simple and transparent, but you should not forget about the risks. There is always a chance of encountering an unscrupulous developer, who may not only fail to meet the promised deadlines for handing over the object or not finish its construction, but also resort to various tricks after handing over the object. What are the peculiarities of drawing up a contract of sale of property rights to real estate and what to pay attention to before signing - we will talk about this in detail in this article. By the way, if you are thinking about buying real estate, we recommend contacting the best luxury real estate agency THE Capital.
Peculiarities of the contract of sale of property rights to real estate Property rights to real estate are subjective rights of participants in legal relations related to ownership, use and disposal of property. Pay attention to the wording "subjective rights", that is, any rights to property, other than ownership, can be meant. It is worth noting that this is the most profitable, practical and safe solution for the developer, since he transfers property rights to real estate to the investor only if certain conditions are met.
See also: How to rent a non-residential premises?
The main catch is that the acquisition of property rights to real estate is not connected with putting the facility into operation. That is, if the developer does not put the house into operation, it will not be easy to return the money. Therefore, the contract for the sale of property rights to real estate should be concluded with great care so that the investor does not have any disputes with the developer in the future. Other features include:
- simplicity of registration — consists in a simple written form and does not require mandatory notarization;
- absence of intermediaries and tax burden - the contract is concluded directly between the customer and the investor;
- the property right to the real estate is transferred by the developer to the investor not at the time of signing the contract, but after 100% payment and confirmed by the act of acceptance and transfer.
What to pay attention to before signing Investments without risk are impossible and only careful preparation will help to minimize them. If you have already chosen an object for investment, before concluding a contract for the sale of property rights to real estate, you must carefully check:
- availability of a complete package of permit documents of the developer;
- reputation of construction entities;
- judicial or pre-trial proceedings of participants in the construction process;
- the presence of restrictions on the use of the land plot.
The specialists of THE Capital are ready to help you assess the risks, check the construction company and avoid troubles after the purchase. Subscribe to our real estate blog updates and get the latest posts from THE Capital real estate agency.
