Financial issues when buying real estate: what is important to consider?

Financial issues when buying real estate often cause the most doubts: what expenses to take into account, how to prepare documents and avoid hidden problems? To figure it out, you need to consider not only the price of the apartment, but also many nuances that may arise during the transaction. We have collected all the most important things so that you approach the purchase with confidence.

What questions to ask when buying an apartment?

At the stage of negotiations with the seller or realtor, clarify the following important points:

• A complete list of documents confirming the right of ownership: purchase and sale agreement, certificate of ownership, cadastral plan.
• The history of the property: were there previous owners, when was the last renovation carried out, are there any encumbrances on the property.
• The possibility of installments or discounts. It is often possible to agree on flexible payment terms with developers.

In addition, check if there are any debts on utility bills or other encumbrances, as this can become a serious obstacle to the transaction.

What do you need to know when buying an apartment?

First of all, it is important to take into account the real cost of the property, including additional costs. When buying a home, the following are mandatory:

• Payment of property purchase tax.
• Notary and lawyer services.
• Real estate agency commission (if the purchase is made through an intermediary).

Underestimating the importance of additional expenses can lead to financial difficulties and delays in the transaction. For example, the property purchase tax in some regions is up to 4% of the cost of the home, but often remains unaccounted for. To avoid such problems, it is important to determine all expenses in advance and prepare the necessary amount.

What to ask a realtor when buying an apartment?

A realtor plays a key role in the transaction, so do not hesitate to ask him clarifying questions:

• How long has the property been on sale? If the apartment is on sale for a long time, this may be due to an inflated price or problems with the documents.
• What other expenses will need to be paid? The realtor should explain in detail about taxes, fees, and additional payments.
• Are there any potential problems with this property? Sometimes sellers are in no hurry to disclose information about encumbrances or illegal redevelopment.

What to look for when choosing an apartment?

Not all aspects can be seen at once, but there are points that require close attention:

• Legal purity of the property. Make sure that all documents, including the title deed and cadastral passport, comply with legal requirements.
• Location. Assess the convenience of the location: proximity to transport, shops, schools, and other important facilities.
• Technical condition of the property. Conduct an inspection or ask the seller the date of the last major repairs of the building.

When inspecting the property, pay attention to the condition of the water supply, electricity, and other technical aspects. Seemingly minor defects can hide more serious problems that will require significant repair costs.

What happens if you do not confirm the origin of funds?

Confirmation of the origin of funds is an important requirement for many real estate transactions. If you do not provide the necessary documents, this may lead to:

• Freezing the transaction. The notary or bank will refuse to continue the process.
• Checking for compliance with anti-money laundering laws. This can take time and require additional costs.
• Loss of trust on the part of the seller or developer.

Example: the buyer tried to make a large cash payment, but the bank refused to accept it without the appropriate certificates. This delayed the transaction and forced the search for additional payment options.

Buying an apartment: what do you need to know about the legal side?

The financial part of the transaction is no less important than its legal side. Inattention to detail can result in big problems. Make sure that:

• All documents are carefully checked by a lawyer. For example, this could be an independent appraisal report or a cadastral passport.
• Taxes and fees are paid on time.
• The terms of the contract are completely clear to both parties.

Buying an apartment is not only a significant investment, but also a responsible process that requires attention to detail. Financial issues such as additional costs, legal purity, and confirmation of funds play a key role. The Deniz Estate team will help you avoid mistakes and make the purchase simple and safe. We are always on your side!