Buying an apartment at the excavation stage: risks, nuances of purchase and registration.

○ Advantages of buying an apartment in a new building at the excavation stage.

Buying housing at the foundation pit stage has many advantages:

The price of such apartments is lower. Sometimes the difference in price with a similar property on the secondary market can be 30-40%.
Possibility of choosing the desired floor and apartment layout.
Developers provide an option to pay in installments.
Modern materials and technologies will be used during construction, which means that there will be no problems with major renovations of the house.
You will be the only owner of the apartment in the entire history of its existence. This means that you do not have to worry about claims to real estate from third parties.

Purchasing an apartment in a building under construction eliminates the possibility of litigation, while secondary housing often becomes the subject of disputes.

○ Disadvantages of buying real estate at the foundation pit stage.

When buying an apartment at the foundation pit stage, there is a risk of running into an unscrupulous developer. Then you may encounter problems such as:

Losing money.
Delay in completion of construction.
The quality of housing does not correspond to the declared one.

Loss of money paid for an apartment can occur as a result of fraudulent actions (for example, deliberate bankruptcy), or due to the negligence of the developer and force majeure. The construction of a residential building has been going on for several years, so the construction company may become bankrupt as a result of the crisis economic situation in the country. A common situation is delays in the delivery of a project. Despite the fact that the contract with the developer clearly states the completion date of construction, buyers often cannot move into their own home for a long time. Construction may be suspended. This happens when a construction company starts operations without the necessary permits. To reduce risks, you need to carefully check the developer before entering into any deal with him.

○ How to find information about developers?

Information about the developer can be obtained on its official website, on forums, through friends. It is also recommended to visit already completed properties and communicate with the owners of the apartments. In addition, regional authorities usually post information about construction companies that operate in bad faith in the public domain. For example, in the Moscow region such a register is maintained on the website of the Ministry of Construction. There is also a Unified Register of Developers in the Russian Federation. When studying information about the developer, you should pay attention to:

Experience in residential construction.
Number of objects delivered.
Postponement of due dates.
The company’s reputation – whether there have been any complaints or legal disputes.

Study the list of construction company partners. If among them there are large banks and insurance organizations, then the developer can probably be trusted. Find out where the developer's office is located, who sells apartments and what contact information you can use to contact the construction company if you have questions. If there is no operational communication with the developer, you should think about whether you need to deal with him.

○ Documents that the developer must have.

Legal due diligence is equally important. The developer is required to provide the following documents:

Constituent documents.
Investment contract.
Project documentation.
Project declaration.
Construction permit.
Title documents for land for construction.
Accounting documentation for the last three years.
Feasibility study of the project.
Insurance contract or surety agreement.
SRO approval, licenses.

The developer must post all the necessary information on its official website. This is provided by law.

Clause 1 of Art. 3.1 Federal Law No. 214 of December 30, 2004: A developer who attracts funds from participants in shared construction provides free access to information about its activities by creating and maintaining a website on the Internet information and telecommunications network, the email address of which includes a domain name, rights which belong to such a developer.

All data on the future structure is contained in the project declaration. This includes cadastral information, deadlines for completion of construction and commissioning, the financial condition of the developer, and information about title documents. The title documents for land can be a long-term lease agreement, a certificate of ownership, or an extract from the Unified State Register of Real Estate, confirming that the land is owned by the developer. You should not buy an apartment if a construction company uses the site for short-term lease or free use. In the investment contract, you need to pay attention to the conditions after which the house will be put into operation. In the document, the local administration specifies the obligations of the developer. For example, he may be required to build playgrounds, roads and other infrastructure facilities in the area. Without these conditions being met, the house will not be transferred to the owners. Be sure to check the availability of all required permits and state examination reports. If there are no such documents, it means that the construction has not been approved. In these papers, you need to verify all information about the developer with the constituent documents.

Developer selection

You should absolutely not be guided by a beautiful picture when choosing an apartment; this is very dangerous, since reality may differ from the pictures in advertising materials. Look at who exactly is selling real estate : the developer himself or an hired agent.

If you purchase an apartment through an agency, then you will be provided with all the necessary services for selecting an apartment and documenting the transaction. Agencies usually charge an additional fee for their services.

Before completing a transaction, you need to:

Study the design documentation.
Familiarize yourself with the title documentation for the land plot.
Find out whether there is bank project financing or whether the development company is carrying out construction using its own finances and investments from shareholders.
Ask the seller to present a building permit, find out the completion date of construction.
Check information about the developer and its management on the Internet.
Receive an extract from the Unified State Register of Real Estate for the land plot on which the house is being built. With its help, you can find out whether there are pledges, encumbrances and restrictions.

○ Agreement with the developer.

As a rule, developers offer potential buyers a ready-made contract form. There are three options by which it is possible to purchase an apartment in the foundation pit stage:

Agreement on shared participation in construction (DDU).
Housing certificate.
Participation in a housing construction cooperative.

The home buyer is most protected when registering a DDU. This type of relationship is subject to mandatory state registration in Rosreestr. If the developer offers to draw up a preliminary DDU or an agreement in another form, it is likely that you are dealing with a fraudster or that the company is not in order with the documents.

Why is it profitable for a developer to sell finished apartments?

Apartments in buildings that have been put into operation can be offered, for example, as part of development projects, where, in addition to the funds of shareholders, own financing and bank loans can be partially used. This approach can provide the developer or builder with additional profit, since finished apartments are more expensive.

In addition, amendments to Federal Law 214, which came into force in 2021, have encouraged builders and developers to sell housing after construction has been completed. We are talking about the requirement for the authorized capital of the developer; before attracting funds from shareholders, the developer must already have a certain reserve of funds at its disposal. And this capital, instead of keeping it dead weight in bank accounts (where it will be inexorably consumed by inflation)

, can be invested in construction, which will generate additional income.

○ Participation in shared construction.

The bottom line is that the developer carries out construction at the expense of shareholders. Only a construction company that has the necessary permits can attract participants. For this reason, participation in shared construction is the most attractive way to purchase an apartment.

Clause 1 of Art. 3 Federal Law No. 214 of December 30, 2004: The developer has the right to attract funds from participants in shared construction for the construction (creation) of an apartment building and (or) other real estate objects only after receiving a construction permit in the prescribed manner, publication, placement and (or) presentation project declaration in accordance with this Federal Law and state registration by the developer of ownership of the land plot provided for the construction (creation) of an apartment building and (or) other real estate objects, which will include shared construction objects, or a lease agreement, sublease agreement of such land plot.

DDU should include:

Description of the object.
The deadline for the completion of the object and the date of transfer of the object to the participants in shared construction;
Contract price.
The procedure for paying the established price and terms.
Warranty period for the object.
Ways to ensure the fulfillment of obligations by the developer.

The DDU comes into force only after passing the state registration procedure with Rosreestr. Until this moment, transferring money to the developer’s account is not allowed. If during the construction process the parties need to make changes to the DDU, this will be documented in an additional agreement. It is also registered.

Step-by-step instructions and registration stages

How does the application process work?

How to apply for a mortgage? There are two ways:

personally contact the bank branch;
fill out an application on the bank's official website.

Banks offer a large selection of mortgage programs, so before applying, you need to decide on the program that suits you best .

Having decided on the mortgage program, you need to collect a package of documents and submit them to the bank branch. Then a bank employee examines your papers, and if your income is sufficient and your credit history is positive, you may be granted a mortgage.

Bank check

If the bank makes a positive decision, this does not mean that the agreement will be signed by the bank, since the object of collateral has not yet been agreed upon. It happens that a positive decision was made regarding a borrower by the bank regarding a mortgage, but when submitting documents for real estate to the bank, it was refused. This happens because the property does not meet the bank's requirements. When choosing an apartment, you need to study the list of bank requirements for the collateral object .

The bank has the right to unilaterally refuse to issue a mortgage, without giving reasons.

When conducting an inspection, the bank checks the selected property, since it is the subject of collateral. First of all, basic documentation is requested: construction permit, land documents, investment contract and other title documents.

Banks have the following requirements for collateral real estate:

liquidity - real estate must be valued at no less than 60 - 70% of the loan amount;
the apartment is located in an area where the demand for real estate will grow or not decrease much over the next 5–15 years;
the new building must comply with established sanitary and fire standards and be suitable for habitation;
the technical plan of the apartment is checked in order to detect possible redevelopments that can reduce the cost of housing;
the property must be located in the region where the bank or its branches operate;
real estate documents should not raise doubts in the bank.

Why might a bank reject an application?

The bank may refuse to apply for a mortgage if:

the apartment does not have a separate bathroom and kitchen from other apartments;
lack of cold and hot water supply;
no electricity or heating systems;
the development company does not have banking accreditation;
non-compliance of real estate with established technical norms and standards was discovered;
the property is encumbered with the rights of third parties.

Package of documents

Package of documents for a mortgage:

questionnaire;
application;
passport;
information about employment (a copy of the work record book certified by the employer or an extract from it).
Documentary proof of income - certificate in form 2-NDFL.

If there are additional sources of funds, they can be confirmed by an income statement in Form 3-NDFL with a tax authority’s mark of acceptance.

Attention! These certificates are valid for 1 month.

Documents provided by the developer:

information about payment details;
tax registration certificate;
financial reports for the last 3 years;
constituent documentation;
title documentation for real estate.

The procedure for concluding a mortgage agreement

The law provides for a number of mandatory conditions that must be in a mortgage agreement. Article 9 of the Federal Law “On Mortgage” of July 16, 1998 provides that the agreement must specify the subject of the mortgage, the valuation of the property, the amount of obligations and the deadline for their fulfillment .

Main sections of the mortgage agreement:

parties to the transaction;
subject of the agreement and method of securing obligations;
procedure for granting a loan;
the procedure for using funds and their return;
rights and obligations of the parties;
liability of the parties for violations of the terms of the contract;
other conditions that do not contradict the law.

If the decision is positive, the lender enters into a loan agreement and a preliminary agreement to pledge the residential premises with the borrower, and the borrower makes an advance payment for the housing he has chosen into his bank account .

Stages of the transaction

The procedure and conditions of the process for concluding a transaction with the developer depend on the sales scheme that the developer used to sell the apartment.

Basic schemes for selling real estate:

housing cooperative;
contract of sale;
agreement for participation in shared construction.

Reference! State registration of preschool education in the local branch of Rosreestr is mandatory. A document that has not gone through the state registration procedure does not give rise to any legal rights and obligations for the parties to the transaction.

Registration and costs

Rosreestr registers the transfer of ownership of real estate , and also registers mortgages. The costs of registering the collateral, according to the mortgage law, are borne by the borrower.

Information about the ownership of real estate is registered in Rosreestr by entering information into the Unified State Register of Real Estate. Registration of the purchase and sale agreement is not carried out. Ownership of real estate passes from the seller to the buyer only after state registration of the transfer of rights.

In accordance with the law (clause 6, article 1 of Federal Law No. 218 dated July 13, 2015 - “On state registration of real estate”), all transactions with apartments are subject to mandatory state registration.

○ Assignment of the right of claim.

An assignment or assignment agreement is a transaction for the transfer of rights and obligations under the DDU from one person to another. It is concluded in writing and comes into force after state registration. The assignment agreement states:

Contents of the assignment.
Transaction price.
Deadlines.
Other conditions, if they differ from the main agreement.
List of documents transferred to the buyer.

The DDU may contain a condition according to which assignment is impossible without the consent of the developer. In this case, the transaction will be invalid if such consent is not obtained. If the seller is married, then the consent of the husband/wife to conduct the transaction will also be required. Under the assignment agreement, all obligations of the equity holder are transferred to the buyer, including the payment debt, if any. Claims, if they arise, are presented to the seller, not the developer.

How to buy a new building from a developer using DDU? Features of the procedure for purchasing an apartment from a developer

The procedure for purchasing a new building from a developer or a developer’s agent has its own characteristics that distinguish this procedure at the construction stage. As with any process, buying a new building or buying a secondary one has its pros and cons. This step-by-step instruction will help you assess the legal risks of purchasing a new building, as well as understand the algorithm for purchasing real estate during the construction phase from the developer. In addition, in these instructions we devote significant space to the nuances of registering the purchase of a new building with a mortgage from the developer, and we talk about applying for a mortgage under the DDU step by step.

Step-by-step instructions “The procedure for purchasing an apartment or other real estate in a new building from a developer without a realtor”

The process of buying an apartment or other real estate in a new building from a developer is significantly different from buying a resale property. If you decide to buy an apartment in a new building from a developer, we recommend that you follow the following instructions. In it we will tell you how to buy an apartment under the DDU or another agreement with the developer. When purchasing real estate from a private person under an assignment agreement under the DDU, you can also adhere to this algorithm. If you are buying ready-made real estate in a new building under a purchase and sale agreement, we recommend that you follow the algorithm for completing the transaction on the secondary real estate market.

Step 1. Selecting an apartment and purchasing scheme for a new building, as well as checking the legal integrity of the developer and the new building

The most important step when buying a new building. By carefully checking the property and the developer, you reduce the risks of challenging the real estate transaction and the risks of the developer's insolvency. We have dedicated a separate article to this important step when purchasing real estate, “Checking the legal purity of a new building and checking the developer.”

Also, when purchasing an apartment in a new building from a developer, the buyer must know the basic schemes for selling new buildings. The most common options for selling apartments from a developer:

sale under an agreement for participation in shared construction (according to DDU, 214-FZ);
sale under an agreement for the assignment of rights of claim under the DDU or another agreement;
sale of an apartment under a participation agreement in a housing cooperative;
sale of a new building under a preliminary purchase and sale agreement

By clicking on the name of the agreement, you can familiarize yourself with the risks of this agreement, which the buyer needs to take into account when choosing a new building and decide whether to purchase this object or not. Let us only note that of all the above sale schemes, the safest for the buyer is the conclusion of an agreement for participation in shared construction (DDU). This type of agreement is strictly regulated by the legislator, thereby protecting the shareholder, as the weaker party to the transaction, from numerous risks when purchasing real estate at the construction stage.

Step 2. We draw up preliminary agreements with the seller. We make an advance or security deposit (if necessary)

As a rule, in order to book a new building and begin the paperwork procedure, developers require an advance, deposit or security deposit.

Let's look at the nuances of each legal term, note the main differences, and also talk about the tricks that unscrupulous developers resort to at this stage of the transaction.

if the contract is not concluded due to the fault of the buyer who paid the deposit, then the deposit will not be returned to him;
if the contract is not concluded due to the fault of the seller, the seller returns double the amount of the deposit;
If the contract cannot be concluded or the parties, by agreement of the parties, terminate the preliminary contract, then the deposit is returned.

Moreover, since the deposit has a security function, in addition to the agreement on the deposit there must be some obligation of the parties, which is secured by the deposit, in particular the obligation to conclude an agreement in the future. Such an obligation is formalized by a preliminary agreement, which must contain the essential terms of the contract to be concluded in the future (subject: description of the real estate object, price of the real estate object, for the DDU the deadline for transferring the shared construction object is also required), as well as the term for concluding such an agreement in the future.

A “simpler” option to secure preliminary agreements is to make an advance payment. An advance is a sum of money contributed towards future payments. That is, the entire amount of the advance must be counted towards payment of the cost of the property under the contract. If the contract is not concluded, then the advance must be fully returned (regardless of whose fault the contract was not concluded).

If doubts arise as to the nature of the amount paid, then by law it is generally accepted that this was an advance payment and not a deposit. An advance is not a way to ensure the fulfillment of an obligation.

The legislator also offers another option to ensure the fulfillment of an obligation - a security payment. Its difference from a deposit is that the parties are quite free to establish rules regarding the fate of the security payment in the event of failure to fulfill the obligation. The parties themselves establish the rules for return in the contract (it can be returned only under certain circumstances or never returned, and in case of failure to fulfill an obligation, an additional amount may be provided, etc.). That is, if the rules on deposits are strictly established by law and cannot be changed by the parties, a security payment is a more flexible instrument for ensuring the fulfillment of an obligation. Therefore, it is important to read the agreement establishing the obligation to make a security deposit and the consequences of failure to fulfill obligations to conclude the agreement.

Developers often come up with various tricks when securing preliminary agreements. For example, they offer to conclude an agreement on booking an apartment, according to which the amount paid is a payment for certain services of the developer (for booking an apartment), and at the same time an act of services rendered is signed along with the agreement. In this case, the buyer is unlikely to be able to return the money if he refuses the purchase for any reason or is unable to conclude a contract. Therefore, you should not rush to make an advance payment, but understand the legal nature of the amount being paid, carefully read what is proposed for signing, consult with a specialist and understand the consequences of not concluding an agreement with the developer.

Step 3. Providing documents for real estate to the bank (when purchasing real estate using credit funds, “mortgage”)

After checking the documents for the construction project, and most importantly, checking the documents characterizing the buyer-borrower, the bank makes a decision on approval or disapproval of the loan. If the loan is approved, the bank sends a proposal on the terms of the loan. When the issue of issuing a loan has been resolved, you can move on to the next stage, and the bank will also participate at almost every stage.

Step 4 . Analysis of the draft agreement with the developer. Negotiating the terms of the deal

If, before making the advance payment (security payment), the developer has not submitted all the necessary documents to verify the legal purity of the new building and the developer, then at this stage we first carry out a check in accordance with paragraph 1 of these instructions. And only after a positive conclusion about the cleanliness of the property and the reliability of the developer, we proceed to the execution of the transaction. We receive documents from the developer, get acquainted with them, and identify possible risks. Unfortunately, developers, especially large ones, are rarely willing to make changes to the terms of the contract, so at this stage it is important to assess the risks based on the available documents. In some cases, it is possible to refuse the deal if the conditions are completely enslaving.

the full cost of the property and the amount of other payments;
the deadline for transferring the property (there are also developers’ tricks here with prescribing several deadlines);
the procedure for settlements between the parties in the event of a decrease or increase in the area of the premises;
restrictions on the assignment of claims under a contract;
quality guarantees, the procedure for making quality claims (under the DDU, these issues are regulated by law imperatively; also, under other agreements, these issues are strictly regulated by the law on the protection of consumer rights; however, for legal entities buyers when concluding a non-DDU, it is important to resolve this issue in the contract);
for contracts that are not strictly regulated by law, also pay attention to the procedure for termination, return of funds, and the amount of the penalty (especially if you are a legal entity and not a consumer).

Depending on the purchase scheme, you also need to pay attention to other nuances (read about this in the links above, depending on the type of contract).

power of attorney to sign an agreement, if a representative signs the agreement, check its form for compliance with the law and check the notarized power of attorney in the register;
if this transaction is major for the developer, then the decision of the authorized body of the developer to approve the transaction;
if the apartment is sold under an assignment agreement and the developer’s consent is required, then written consent to the transaction must be requested.

Also, depending on the purchase scheme, additional documents may be required. For example, if an apartment is being sold by assignment from an individual, then additional “physical” documents will be required: a passport, notarized consent of the spouse or confirmation of the absence of marriage or separate property regime, and other documents.

Step 5. Signing an agreement with the developer

As a rule, the contract is signed at the developer's office. Before signing, the identity of the signatory and authority to sign the agreement are checked (power of attorney or Unified State Register of Legal Entities information for a person acting without a power of attorney from a legal entity).

Step 6. Registration of the agreement in Rosreestr (if such registration is required)

Registration with Rosreestr is required when concluding a DDU or an assignment agreement under a DDU. As a rule, the agreement is registered by the developer, but the participation of the shareholder will also be required (he signs an application for registration of the agreement in Rosreestr). The shareholder also provides the following documents when signing the application:

identification document (passport or other similar document);
notarized consent of the spouse for the transaction to be completed by the other spouse;
when minors or incapacitated persons participate in the transaction - documents certifying the powers of the legal representative;
a pledge agreement for the right of claim (required in the case where a participant in shared construction is provided with credit (borrowed) funds for the simultaneous registration of an encumbrance on the right of claim).

For registration, agreements are also provided (1 copy for each party + 1 copy for Rosreestr), an application for registration of the agreement (signed by the developer (assignor, if an assignment agreement is concluded) and the construction participant in Rosreestr or the MFC), a receipt for payment of the fee, constituent documents of the developer. To register the first DDU, the developer provides additional documents, including a plan of the property being created; construction permit and project declaration; a document confirming the right (ownership or lease) of the developer to the land plot on which the property is being built; a civil liability insurance contract for the developer for non-fulfillment or improper fulfillment of obligations to transfer residential premises under the DDU, as well as a document confirming payment of the insurance premium (part of the insurance premium) in accordance with the insurance agreement, or a guarantee agreement for the proper fulfillment by the developer of obligations to transfer residential premises under DDU, as well as a document confirming payment of remuneration under the guarantee agreement; lists of citizens who have the right to purchase economic class housing, which has been built or is being built on categories of land plots specified by law.

When registering subsequent DDUs, the developer provides confirmation of mandatory contributions to the compensation fund, intended to pay compensation to citizens participating in shared construction in the event of bankruptcy of the developer. The shareholder can check the developer’s transfer of funds towards deductions for the DDU on the fund’s website.

in person (or through a representative by proxy) to a branch of Rosreestr or MFC, including regardless of the location of the property in accordance with the list of divisions that provide reception on an extraterritorial basis posted on the Rosreestr website, as well as to an authorized person of Rosreestr during on-site reception.
In Moscow, documents for state registration are accepted only through the MFC, except for admission on an extraterritorial basis. In order to register a preschool building for a new building in the Moscow region, in most cases it is also necessary to contact the MFC.
by mail with a declared value upon sending, an inventory of the contents and a receipt notification
in electronic form, including via the Internet through the Unified Portal of State Services and the Rosreestr website. When sending documents by mail, the authenticity of the signature on the application must be notarized, the transaction with residential premises must be notarized, and a copy of an identification document (passport) must be attached to the application.

When submitting documents for state registration, you must be given (sent) a receipt (notification) of receipt of the documents.

The period for state registration of the agreement should not exceed 7 working days from the date of receipt of the application and necessary documents by Rosreestr (9 working days if documents are submitted through the MFC). This period begins on the next working day after the date of receipt of documents.

State registration of an agreement for participation in shared construction is certified by a special registration inscription on it.

To register a preschool educational institution, you must pay a state fee to the budget:

for individuals - 350 rubles;

for legal entities - 6,000 rubles.

The state duty is paid by each party to the transaction in equal shares. Taking this into account, an individual and a developer will need to pay 1/2 of the state duty established for them, that is, 175 rubles. and 3,000 rub. respectively.

In addition, developers and equity holders often order services for registering a child-care facility from specialists (some developers impose these costs on the equity holder). The average cost of services for registering a preschool educational institution is 15-35 thousand rubles. The law firm “Dvitex” also provides services for registering a DDU in Rosreestr, as well as for registering an agreement for the assignment of the right of claim under an agreement for participation in shared construction, while our services are paid after receiving the registered agreement. You can familiarize yourself with the terms and conditions of this service on this page of the site.

Step 7. Payment of the cost of real estate under the contract

The safest method of payment is to pay the cost of real estate after signing an agreement or registering an agreement, if such an agreement is subject to state registration (if the agreement is concluded in accordance with Federal Law-214, then such a payment procedure is required). The buyer must retain payment documents confirming payment for the cost of the construction project. In addition, if a construction project is purchased using credit funds, it is necessary to obtain documents from the bank confirming the transfer of funds by the bank to the developer, if the bank transfers them directly to the developer.

Step 8. Don’t forget to apply for a personal income tax deduction in connection with the purchase of residential real estate after signing the transfer deed and return the tax from the budget

Read more about applying for a tax deduction when buying an apartment here.

Do you need legal support for a real estate transaction? For an initial consultation and calculation of the cost of services, call us at 8 (495) 223-48-91 or submit a request.

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○ Nuances that must be taken into account when accepting an apartment.

The inspection of the apartment should be carried out during daylight hours. Acceptance of an apartment is carried out according to an inspection sheet. If any defects are identified, they must be reflected in the acceptance certificate. The shareholder will need to substantiate his claims. The developer, in turn, is obliged to eliminate the defects within the period specified by the DDU. By the time of acceptance, the house must be accepted by the state commission. You definitely need to pay attention to the main communications - electricity, water supply, sewerage. Check the angle of the walls and joints. Make sure there are no leaks. There should be no bumps, holes, cracks or voids on the screed. Check that the area of the apartment, the height of the ceilings, the width of the openings, and the quality of materials correspond to those stated in the documentation.

Inspection of the apartment. Price analysis

First of all, we study the property. Unlike the DDU, the finished apartment is offered on an “as is” basis, in other words, if any defects or shortcomings are discovered, it will not be possible to force the developer to correct them. We evaluate all housing parameters and analyze the asking price. It must be remembered that if the price is lower than the market average, then most likely there are some surprises that the developer is keeping silent about. The issue may be the quality of housing (for example, some element of the engineering infrastructure does not work)

or in documents.

It is necessary to compare the results of visual observations with the BTI plan; if, for example, there is no wall (where it should be according to the plan)
, you will subsequently have to register the redevelopment, and problems may arise with this.
In addition, a low price may indicate possible fraud on the part of the seller (no matter how convincing the reasons for the discount may sound)
. Therefore, if the price is too attractive, we very carefully check everything that can be checked.

However, it may turn out that the apartment is being sold with difficulty simply because of its unfavorable location (for example, the first floor with windows overlooking the parking lot)

○ Methods of fraud.

The most popular type of fraud is an offer to conclude a preliminary purchase and sale agreement instead of a DDU. Since payment under such an agreement is not transferred, scammers demand the conclusion of an agreement to purchase a bill of exchange, the value of which is equal to the cost of the apartment. In this case, the buyer does not have any rights to housing. The developer can also sell apartments on his own behalf, but in fact another organization appears in the contract. Such actions are illegal. All documents must indicate the same legal entity. Remember that the agreement with the developer comes into force only after registration. Until this moment, they cannot demand any funds from you. If the developer asks to transfer money before registering the contract, then most likely he is a fraudster. Often, under this scheme, the same apartment was sold several times.

Text of the purchase and sale agreement. What provisions are recommended to be included in the contract?

Now we study the purchase and sale agreement. The seller must be the legal entity that has the right of ownership of the apartment. Among the mandatory ones (according to Article 554 of the Civil Code of the Russian Federation)

real estate parameters, the contract must indicate the postal address with the apartment number, otherwise the contract will be declared invalid.

The contract must indicate the full cost of the apartment or the price per square meter; in the second case, the contract must specify the number of square meters.
It is highly desirable to have a clause in the sales contract stating that the price cannot subsequently be changed and is final.
In addition, it is worth including the following condition in the contract: the seller guarantees the absence of rights of third parties to this apartment, as well as the absence of any encumbrances
(pledge, arrest) .
The conditions for terminating the contract must also be spelled out, as well as the seller’s obligation to provide you with the documents necessary to register property rights;
It is imperative to indicate in the contract not only the amount, but also the procedure and terms of payment.
The best option is to make payment through a letter of credit - the buyer gives the bank an order to make payment in favor of the seller only after presenting a document indicating that the seller has fulfilled the terms of the contract.
That is, the seller brings an extract from the Unified State Register to the bank and receives money. However, other payment options are also possible, for example, direct cash transfer (against receipt)
or using a safe deposit box.

It will not be easy for a buyer who has little understanding of the nuances of drafting a contract, the legality and possible interpretations of its various provisions to understand what risks he may face. There may be language in the contract that implicitly indicates certain actions or aspects, but which are very clear during legal proceedings. Therefore, it will be better if the text of the agreement is studied by a professional lawyer who specializes in real estate transactions.

A specialist will help you understand the true meaning of certain wordings, and will also tell you what else can be included in the contract in order to protect yourself from risks.

○ Advice from a lawyer:

✔ What danger does a preliminary purchase and sale agreement pose?

A preliminary purchase and sale agreement does not imply the emergence of rights and obligations among the parties. This is only an agreement that the main transaction will be concluded by the parties in the future. It is not registered with Rosreestr. If the developer offers to conclude a preliminary agreement, most likely he has something wrong with the documents or is planning to deceive you. In any case, when drawing up this document, be sure to indicate the date of conclusion of the main transaction.