Common Mistakes Made by the Purchase of Apartments

Apartment purchase demands a very careful and reasonable approach. Everyone knows it, but only few apply it. Some fall in euphoria dreaming of the wonderful future in a new house, others are hooked by attractive conditions so much that they don’t pay attention to anything else.

Look through our check-list of possible mistakes to avoid by the purchase of apartment, in order to have no regrets after you buy it. When you find an interesting offer, check it against all points in order to not be hooked by fraudsters.

Mistake No. 1

Low price. Try to be objective as much as possible and don’t fall into temptation of buying apartment cheaply. Remember the saying — penny-wise, but pound-foolish.

When an apartment is sold at an unbelievably low price, there is some problem behind it. More often than not such problems are serious, otherwise people wouldn’t make haste to get rid of it. Remember that there are no seasonal sales or clearances on the real estate market.

If the owner of apartment agrees to a low price at the very beginning or suddenly announces about a significant discount, most probably, he is up to something and has his own, maybe even dishonest, purposes. This means that the purchaser has to make sense of the case to be on the safe side.

Quite often, a cheap price for an apartment hides extreme prices for its reservation and for the formalization of documents. So be sure to clarify all financial issues, like what services will you be provided with and what will be the price of each service.

Mistake No. 2

Naivety. Trust facts and documents instead of words. Pay a visit to the construction site or to the developer’s office; get in advance a copy of the real estate sale and purchase agreement recommended for signature and copies of basic documents proving construction legitimacy.

Basic documents that need to be verified:

• declaration or permit to begin building works;

• documents of title to the land plot (be it land lease or ownership); and

• documents about the seller of the real estate and about all legal entities engaged in construction. Find out who is the founder, whether this private person or legal entity is or is not a bankrupt; whether any enforcement proceedings have been initiated against such persons.

Mistake No. 3

Self-confidence. Don’t do the documents check on your own without the support of lawyers. Involve legal specialists for a comprehensive analysis of the agreement offered by the developer. Look at the following:

• developer’s responsibility in case of the late bringing of the development in operation;

• money-back guarantee;

• availability of apartment’s technical specifications in the agreement;

• disputes with other investors in the court register; and

• any pending hearings of problematic disputes in the court register, which may have impact on the construction progress.

Mistake No. 4

Lack of attention to infrastructure and territory around the house. For example, the master project includes an underground parking; the developer also promised educational and medical establishments in the near. At the end of the day, it may appear that all parking places have been sold out long time ago, or that there is such a long line to get to the kindergarten, that you need to sign up for it three years in advance. Do clarify such things with the developer and ask about what guarantees you have.

Mistake No. 5

Blind trust. When buying real estate, follow this rule – trust but verify. Remember that every person studies his/her own interests. Treat all advice of those who assist you with some skepticism. Feel free to ask questions and to consult with other specialists.

Do you still have questions? Ask them in comments, and we will surely give you answers.