Buying an apartment in a new building

According to many parameters, secondary housing can be a more reliable investment, but modern new buildings have more advantages and are only gaining momentum due to demand:

• Developers use innovative construction technologies.
• Increasingly, buyers are offered non-standard, convenient layouts.
• There is an opportunity to save money and purchase real estate at the excavation stage.

Having made a choice in favor of a new building, you will surely be interested in how it goes buying an apartment from a developer: preparation of documents, inspection of the construction company, acceptance of the premises, registration of the right and other nuances - we will talk about them in this article.

Where to start the process of buying an apartment in a new building

The first thing to think about is the criteria that the new building must meet. Such housing should be chosen carefully, taking into account a lot of nuances and factors. Before you find out how to properly arrange the purchase of an apartment in a new building, you need to study as many objects as possible, pay attention to the prices. Then choose the location and infrastructure, which should be on the territory of the residential complex and within walking distance from it, as well as:

• Materials for construction.
• Areas and planning options are available.
• Readiness of housing for use after construction or at the time of purchase.

By the way, if you are thinking about buying real estate, we recommend contacting our office professional luxury real estate agency THE Capital.

Buying an apartment in a new building depends on the budget

The process of buying an apartment in a new building largely depends on the condition in which the property is planned to be purchased. It is financially more profitable to purchase an object at the pit stage, but it carries certain risks. For example, construction can turn into a long-term building due to the bankruptcy of the construction company. Sometimes it is more correct to buy an apartment during the construction process, but shortly before it is put into operation. At this stage, you can also save money, since in fact the construction is still going on.

See also: How to rent a non-residential premises?

When preparing for the purchase of an apartment in a new building, also consider that some developers offer more loyal conditions when choosing objects on the lower floors or with a standard layout. Sometimes developers offer discounts when paying the entire cost of real estate or announce seasonal price reductions and promotions — this is also a way to significantly adjust the budget downwards.

Buying an apartment from a developer: choosing and checking the company

The process of buying an apartment from a developer will be simple and clear if this company works transparently and acts in the interests of investors. Therefore, the choice of a builder should be thorough and perfect. Therefore, if you have a question about what you need to check when buying an apartment in a new building, it is recommended to pay attention to the following:

• How many years has the developer worked in the construction market.
• Are there permit documents for the implementation of specialized activities and the right to a specific plot where construction is underway.
• What is the developer's reputation among clients and how significant is his financial portfolio.

Our experts, knowing the rules for buying an apartment in a new building, advise considering four factors when choosing a developer:

• What is the organizational and legal form of the company.
• Does the company have any debts?
• Are there actually documents for activity and construction — they should be publicly available in the offices and on the official website.
• Who finances the construction company — personal funds, investors or banks.

If there is no experience, it is better when realtors and lawyers who constantly work with the primary residential real estate market and know all the pitfalls of such a choice check and help prepare documents for the purchase of an apartment in a new building.

See also: Renting an apartment: how to write an ad correctly?

The main stages of buying an apartment from a developer

Most investors think that if the purchase of an apartment from the developer has already started, the documents have been collected and the payment has been made, then they are already full-fledged owners of the new home. In fact, there is a long way to go to get the right to own real estate. To begin with, it should be noted that registration of real estate is possible only if the developer:

• He has in his hands certified documents on the distribution of residential and non-residential real estate in the new residential complex.
• Prepared and certified the technical passport issued by BTI.
• Received confirmation from DASI (State Architectural and Building Inspection).
• Has a permit for construction, and in the future receives the right to put buildings into operation.
• Undertakes to assign or has already assigned the postal address of the house.

Buying an apartment in a new building: step by step

The stages of buying an apartment in a new building are divided into two points:

• Preparation of documents.
• Paperwork.

The detailed step-by-step procedure for buying an apartment from a developer looks like this:

• Communication with representatives of the developer. Studying the plan and choosing the optimal apartment according to the required characteristics: layout, floor, exact location.
• Preparation of preliminary contract. The rules of buying a house under construction or a finished new building necessarily presuppose the preparation of the agreement and giving the potential buyer time to study it.
• Amendments to the contract, if any.
• Signing the contract. It is carried out simultaneously by two parties with a detailed description of the data. The buyer specifies his passport data, identification number, contacts. On the part of the builder, the following are prescribed: the full name of the organization, organizational and legal form, data on registration with state institutions. The buyer puts a signature and transcript, the developer - a real signature (not a facsimile!) of the manager and seal.
• Money transfer. If the purchase of an apartment in a new building is carried out through a bank, the paperwork is completed by contacting the bank or submitting documents for a loan. Only after a positive decision on satisfaction of all requirements by the buyer, the bank transfers funds to the developer.
• Signing the act of acceptance and delivery of the object.
• Registration of the right to residential real estate.

If an apartment in a new building is purchased through an intermediary, that is, our real estate company, then an additional agreement is signed, which specifies all the duties and procedures of realtors and lawyers.

What documents must be present when buying an apartment in a new building

Currently, the list of documentation includes the following:

• Act of acceptance and transfer. Issued by the developer upon request at the stage of complete readiness of the building. The future owner must first inspect the housing, and only then sign the deed. If an unfinished apartment is purchased from the developer, the document is replaced by a temporary explanation of the housing, that is, a detailed architectural explanation according to the project being built.
• Cadastral passport. The passport is obtained at the stage of registering real estate in the cadastral register.
• Registration of ownership is issued by the registration service of Ukraine, the document confirms the right to the purchased property.
• To conclude the contract, you need to prepare a passport and photocopies of all owners of the property to be purchased.
• The contract with the developer is issued by him, signed by both parties in two copies. If housing is purchased at the construction stage, an investment contract is issued.

Documents for the purchase of an apartment in a new building may also include a loan agreement and a security deposit, if the object is purchased through a bank loan. All the listed papers are issued by the credit organization.

The procedure for completing documents when buying an apartment in a new building: property registration

• The buyer signs the statement.
• The institution considers it within 30 days.
• According to the results of the review, if the procedure for buying an apartment in a new building has not been violated, the applicant is considered the owner, and receives a corresponding document.

Now you are a full-fledged owner of real estate, you need to register in an apartment and register your relatives. Was the publication interesting and useful? Subscribe to our real estate blog updates and get the latest posts from THE Capital real estate agency.