What you should know when buying a garage in a co-op

You have chosen a car, checked its condition and agreed on a price with the seller. All that remains is to conclude a purchase and sale agreement, transfer the money and go to the traffic police to register the car in your name. Or do you need to pay only after registration? When to transfer money when buying a car?

There are no state-regulated rules. Pay whenever you want, or rather, as agreed with the seller. We talk about the most popular options for transferring money when buying a car.

Payment after registration with the traffic police and prepayment

Don't want to take risks? We understand. Therefore, we suggest agreeing with the seller on the following. After concluding the contract, you make an advance payment, and transfer the entire amount only after checking the car at the traffic police. You will have to go to the department together.

To prevent the seller from being nervous, make a note in the contract that ownership of the vehicle passes to you only after the entire amount is transferred. To avoid stress yourself, ask the seller to write a receipt for the prepayment received. You can do without it altogether, depending on what you agree on.

Pros: you pay only after you make sure that there are no problems with the car. The seller will personally make sure that the car is no longer on him, taxes and possible fines for violating traffic rules will not come to him.

Cons: not every seller will agree to such conditions. By law, he is not required to go to the traffic police, and the prospect of spending a couple of hours in a government-owned house is unlikely to tempt him.

Also read: How to register a used car with the traffic police

Features of a garage mortgage

Build a garage on your site! Read SNT: what is this?

Residents of a high-rise building who took out an apartment with a mortgage or in cash can count on a parking space in the area adjacent to the house. For those who do not live in new buildings, it is much easier to purchase a garage in a cooperative.

Sometimes the cost of parking a car on the property is included in the apartment mortgage.

If you decide to take out a mortgage for a separate garage , it is important to understand that it is considered as an independent unit . That is, a special place has been allocated for its construction, and a separate certificate of ownership has been issued.

Please note that banks only lend to detached properties, and not part of a shared property. If a garage is in operation in a cooperative (it is a composite unit of one room, with a common foundation), as a rule, it is simply privatized.

Payment after self-checking the car using VIN

A compromise solution is to check the car's history yourself. For example, the check can be carried out using the VIN or license plate number on the website avtocod.ru. For 399 rubles you can buy a full report on the history of the car here. From it you will learn:

• data from PTS;
• number of owners;
• participation in an accident;
• actual mileage;
• OSAGO data;
• presence of restrictions;
• history of fines;
• customs history;
• and much more.

All is clear? Then proceed as we advised at the very beginning: draw up an agreement, transfer money, shake hands and register the car when it is convenient.

Pros: you are confident in the purity of the transaction, and you don’t have to persuade the seller to go to the traffic police.

Cons: almost none. Commission to an auto expert, respect to a familiar traffic cop, or a nominal fee for service.

Requirements for borrowers

The following requirements are imposed on applicants for participation in mortgage lending:

• age restrictions have been established: individuals whose age ranges from 20 to 65 years can apply for a loan (it is worth noting that the borrower must reach the upper age limit at the time of repayment of the mortgage);
• presence of an official place of employment;
• the total work experience should not be less than a year (the applicant must be registered with the last official employer for at least six months);
• documentary evidence of sources of income;
• presence of Russian citizenship;
• registration in the region of presence of the office of the financial institution to which the application is submitted;
• Some financial institutions require applicants to take out insurance policies both for themselves (death, loss of health, or work) and for the purchased object.

Attention! Some banks today offer mortgage programs to individuals that do not require documenting the source of income or pledging personal property. But at the same time they set inflated interest rates on them. This is due to the fact that banks are thus trying to insure themselves against risks associated with non-repayment of loans issued.

Bottom line: when is the best time to transfer money?

It is safest to pay only after registering the car. Agree on this with the seller in advance. Write down the conditions (prepayment, transfer of all funds) in the contract; it is drawn up in free form.

If the seller does not agree, check the car yourself before the traffic police. Check its history with the help of a service, an auto expert or a friend from the traffic police.

Bank lending conditions

The following banks currently provide mortgages for garages and parking spaces:

VTB 24 and other large banks have closed their similar programs and there you can purchase a garage and parking space using a consumer loan or a mortgage secured by real estate, but from July 2021 a loan for a garage and parking space is available from Sberbank on very interesting conditions.

How to transfer money when buying a car

The right moment to transfer the money has been sorted out. We tell you how this can be done.

Give in cash

A very popular method, despite the danger of running into a criminal. If you decide to act this way, take these steps:

• Take a friend with you, or better yet two. They will also become witnesses in the event of a trial.
• Choose a safe place: a bank, hotel reception or business center. A large store or an empty street will not do.
• Together, in front of witnesses, count the entire amount.
• Request a receipt from the seller stating that he received the money. It must contain the seller’s passport details, the amount and subject of the transaction.

Be careful and attentive. It is also advisable to check the banknotes for authenticity.

Act through the bank

If you don’t want to tickle your nerves, use the services of a bank. The service can be:

1. Rent a cell. You come to the bank with your passport and write an application to rent a safe. Explain to the bank employee the purpose of the event, and he will help you correctly indicate the conditions for separate access. Leave the money in the safe deposit box so that the seller can pick it up after handing over the keys or registering the car, depending on how you agree. This method of transferring money for property is considered one of the most reliable, but it also has its drawbacks. The contents of the locker are not specified in the lease agreement. That is, the buyer can put 100 rubles inside instead of a million. The verification and recounting of money must be negotiated separately with the bank. You can also submit this matter to a notary; check with the bank for details.

2. Letter of credit. Unlike a safe, the service is intended for cashless payments. How does this happen:

• The seller and you enter into a contract.
• You bring the DCT and your passport to the bank and write an application to open a letter of credit.
• Open a bank account and deposit the required amount into it.
• The seller fulfills the terms of the contract and provides supporting documents to the bank. What documents these will be are decided by the parties.
• The bank verifies the documents and transfers the money to the seller.

This method is most often used when purchasing real estate. In the case of a car, it is not easy to decide which documents will serve as confirmation that the transaction has been completed. Therefore, we advise you to get advice from the bank.

3. Transfer money to the card. This can be done at a bank branch, through an ATM, app or mobile bank. There are only restrictions on the transfer amount. For example, the daily limit in Sberbank Online is 500,000 rubles.

The buyer transfers the entire amount, and the seller checks his account. At the same time, it will be almost impossible to withdraw money without the consent of the recipient. At Sberbank, for this, the applicant will have to come to the branch and, most likely, resolve the issue through the court.

4. Transfer of cash through the cashier. This is also a good option. Choose any branch of your bank, order money and come there on the appointed day along with the car seller. Go to the cashier's booth, withdraw money and give it to the former owner in exchange for the keys. The choice is yours.

Which bank is better

When planning to purchase a parking space or garage with a mortgage, an individual must first choose a financial institution for cooperation. To do this, it is necessary to conduct research on the local credit sector and compile a rating of banks. When choosing a lender, vehicle owners should focus on reliability, as well as on the terms offered to them.

Currently, only three credit institutions operate under this special program. If we compare Sberbank, Deltacredit and Absalutbank, then we can say that Sberbank will be more attractive among other banks for the reason that the loan term is up to 30 years, there are discounts for salary earners and you can take into account additional income without confirming it. And, in general, Sberbank mortgages are very popular in the country.

Attention! When studying the mortgage programs offered to individuals, it is necessary to pay attention to the following indicators: the amount of the down payment, the interest rate, the maximum loan amount, and the loan term.

Bottom line: what's the best way to transfer money?

Involve the bank. It's safer and more reliable, but not always free. Renting a locker will cost you at least 1,000 rubles, and a letter of credit will cost from 1,500. If you pay in cash, take safety measures: choose a quiet place, take a brutal friend with you and demand a receipt from the seller.

Remember: each option for transferring money should be agreed upon with the seller in advance so that there are no surprises. If a transaction seems suspicious to you, contact a lawyer for advice or act strictly through the bank.

Happy shopping!

Requirement for the collateral

Credit and financial funds for collateral objects (which are real estate purchased with a mortgage, if the client does not transfer personal property to the bank for these purposes) have standard requirements:

1. The presence of a capital foundation made of brick, stone or cement.
2. The object should not be in disrepair.
3. The garage should not be in line for demolition, reconstruction, or major repairs.
4. It must be highlighted as an independent object.

Documentation

To take part in the mortgage loan program, applicants must prepare a package of documentation:

• application (fill out a form developed by the bank);
• the borrower’s personal passport, which must contain all important notes regarding citizenship and registration;
• tax identification code;
• certificate of monthly earnings, which contains data for the last six months;
• documentation for the collateral: a purchase and sale agreement or another document serving as the basis for the emergence of property rights (will, deed of gift); certificate confirming ownership; extract from the Unified State Register of Real Estate, cadastral passport, expert assessment, sellers’ passports;
• documentation for the purchased property: purchase and sale agreement, documents for the land plot, copy of the passport of the owner of the parking space or garage.

Attention! Each financial institution may, at its discretion, change the basic list of documents required to obtain a mortgage. It is worth noting that if co-borrowers participate in the program, they will also be required to provide personal documentation.