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How to choose and buy an apartment in a new building

Recommendations for choosing and buying an apartment in a new building
06.02.2020
How to choose and buy an apartment in a new building

In this article we will consider the main aspects that you need to pay attention to when choosing and buying an apartment in a new building. These recommendations will help you make the right choice and secure your investment.

Real Estate Market Analysis

First of all, you need to do a thorough analysis of the primary real estate market, study the maximum number of options, compare prices, layouts and location of objects with different developers. This will help you understand the dynamics of prices and choose the most suitable options for yourself. Advantageous location, proximity to transport interchanges, developed external and internal infrastructure, beautiful views, modern construction technologies, successful layout - all these characteristics significantly affect the price of the apartment. Determine the parameters that are important to you and, based on them, make a list of suitable new buildings for you. After that, you can go to check the reliability of the builder.

Choosing a reliable construction company

Find out as much as possible about the developer: how many years he has been on the market, experience in the construction and commissioning of other facilities. Check out reviews of other investors and apartment owners in already commissioned residential complexes. You can find this information on the official website of the developer, in social networks and on thematic forums. But be careful and consider only those that are supported by documents, photographs and expert opinion. You can also check the reputation of the developer using the following Internet resources:

  • Website of the State Architectural and Construction Inspection. Here you can find information about the object and a list of documents that were issued to the construction company.
  • On the website of the Ministry of Justice of Ukraine, you can get information about private entrepreneurs and legal entities.
  • The state register of property rights to real estate provides information on the owner and purpose of the land.
  • The Register of Judicial Decisions contains information on property disputes and bankruptcy of companies.
  • The public cadastral map will help to find out the owner or tenant of the land, the purpose and cadastral number.
  • The Association for Assistance to Affected Investors website provides a list and a detailed report on each problematic and illegal construction site, developers involved in scandals.

Confirming the reliability of the builder using the proposed resources, you can proceed to the study of permits.

Verification of permits

Permits are available on the official website of the developer or a scan copy of all documents can be obtained from the sales department. If you are refused to provide a full package of documents - this is an alarming sign, and it is better to refuse the services of such a developer. You should be interested in the following documents:

  • License confirming the right of the company to carry out construction work.
  • Title documents on land. Pay attention to the lease term and purpose of the site. If the land is owned by the developer, you will be provided with an extract from the State Register of Property Rights to Real Estate in the sales department. If the land is leased, you will be presented with a lease.
  • The lease term must expire later than the term for putting the house into operation declared by the construction company. The purpose of the site should be the construction of an apartment building.
  • A building permit or a registered declaration of the start of construction work (depending on the class of consequences).
  • The design of the building, examination of this project.
  • Technical conditions for connecting the house to communications.

Carefully study the received copies of documents and verify their authenticity using the above state resources.

Making an apartment in a new building

In the primary real estate market of Ukraine, there are different formats of contracts for the purchase of an apartment in a newly built residential complex, all of which depend on the investment mechanism that the developer offers. Types of Contracts:

  • Agreement on participation in the Construction Financing Fund.
  • Agreement on the acquisition of certificates of the Real Estate Fund.
  • Mutual participation agreement in a cooperative.
  • The contract of sale of bonds.
  • Derivative sale contract.
  • The contract of sale of property rights.
  • Investment agreement.
  • Preliminary contract of sale of real estate (property rights to it)
  • Forward contracts.

Despite the fact that the execution of the transaction will differ significantly depending on the financing scheme, there are several key points that should be present in any agreement and will secure your investment. The contract must include:

  • Details and passport data.
  • Title documents on land.
  • Permission to carry out construction work.
  • Description of all the characteristics of your future apartment (house address, floor, apartment number, total and living area of the apartment, equipment).
  • The price for one m² and the total cost of the future apartment.
  • The amount is clearly stated at 100% payment or the amount of periodic fixed installments when paid in installments.
  • Terms of putting the facility into operation.
  • Terms and conditions of transfer of ownership of the apartment to the Buyer.
  • Terms of termination and mutual compensation.

Before signing the contract, you should contact an independent lawyer. He will check the documents of the developer, the contract itself and provide a report on the legality and risks of this transaction.

The process of paying for real estate in the primary market

If the terms of the contract suit both parties, you can proceed to payment. Settlement can be made through the bank in cashless form or in cash, subject to the restrictions provided by the law of Ukraine. If the apartment is purchased on a mortgage, you must additionally conclude a loan agreement with the bank. It is important to consider that the Buyer will need to undergo financial monitoring to verify the legality of funds.

Apartment admission procedure

After putting the LCD into operation, when the apartment is received, a representative of the construction company and all apartment owners must be present. Be sure to check under the contract all the items that the developer should have completed in your apartment. If during the inspection any shortcomings are identified, a defective act is drawn up, in which they are all indicated. After eliminating the shortcomings, you re-examine the apartment, and if everything suits you, sign the acceptance certificate. After signing the act, you need to register the ownership of the apartment. And only after that you become the happy owner of an apartment in a new building.