Just before signing: What should you check before completing a real estate transaction
In many ways, there is no purchase quite like buying real estate. These transactions involve substantial sums of money and are often characterized by their rarity: they do not occur frequently. To make a sound investment, it is essential to adhere to several preliminary checks that will eliminate any concerns and ensure you have completed all necessary steps. It is important to note regardless of the property’s purpose or type, thorough due diligence is essential
Skipping the due diligence phase can lead to numerous problems, ranging from financial losses to significant emotional distress. One area where you should never cut corners is the due diligence phase, much of which is advisable to conduct with a real estate lawyer.
What Do You Know About the Seller?
You also need Beware of impostors who claim to be property owners. There have been cases where impostors posed as owners of apartments and houses during second-hand transactions. To ensure you are dealing with the true owner, you must verify with the seller that they are indeed registered in the Land Registry. You can do this by comparing their ID details with the records of the Land Registration Office. This is the most basic check when purchasing a second-hand apartment, store, or any other type of property.
Additionally, through the Land Registry, you can learn about the property you are interested in. There have been sales transactions where sellers promised additional spaces, such as parking spots or storage rooms, but after the sale, they evaded these promises, claiming a misunderstanding. Therefore, check the Land Registry to see if the parking spot, attic, or storage room truly belongs to the specific property you are interested in. The Land Registry can also reveal less favorable issues, such as notes on debts or liens.
:The Importance of Planning tests
When considering the purchase of a property, initially, all your focus is on finding your dream apartment, and this search involves a great deal of energy, which is entirely justified. Once you find a property that meets your requirements, it is important to begin conducting checks, one of which is a planning check. This check should reveal whether the property was built with the appropriate permits, if there are any violations, if the permitted use aligns with the current use, whether the building rights have been fully utilized or if there are additional rights, and if there are any legal proceedings against the property owner. It is crucial to perform these checks before signing the agreement, not after.
Just Before Signing: Transaction Terms
You may sign documents casually multiple times a day during transactions, but when making a deal like this, you must ensure that you thoroughly review the purchase agreement. It is highly advisable to work with a lawyer who will draft the agreement in a balanced manner with a clear bias in favor of your rights. Many real estate buyers have settled for seemingly standard contracts only to find clauses that significantly disadvantage them.
When you consult a lawyer, they can review the existing agreement provided by the seller and, if the agreement does not protect you, draft a new one based on a revised template. The lawyer will ensure fair and manageable payment terms, a commitment to the property’s vacating date, and clauses that guarantee a safe and transparent transaction with minimal risks. It is important to understand that reviewing the purchase agreement is relevant and essentially both when buying a second-hand property and when dealing with a contractor.
Sometimes, there is a tendency to assume that dealing with a contractor does not require document review, partly because the agreement is provided by a professional and reputable company. Remember, you must ensure that every clause is reviewed and amended with the help of a lawyer if necessary. Ensure that your real estate transaction proceeds with peace of mind.
