Buying a home is one of life's biggest and most important investments, which is why the whole process is complicated, slow and even a little intimidating. Therefore, to reduce stress, risks and possible inconveniences, it's a good idea to be well aware of what, when and why you are expecting before you take this step.
You need to determine your budget in advance and how you will finance the purchase, you need to thoroughly research the market and whether the offer meets your requirements and capabilities, choose the most suitable location and once the decision is made... well, it's time to book!
If you haven't gone through all these steps yet, read "BUYING A PROPERTY - TIPS FROM ARTSTROY 1 INVESTMENT", it will surely be helpful to you.
How to book desired property?
Once you have chosen the right property for you, the first step is booking.
Reserving a property is generally "saving" it for a certain period of time, in return for providing a certain amount of money - a deposit or earnest. The principle is similar to booking a hotel room or a restaurant for example.
The amount of the deposit as well as the period during which the reservation is "valid" is described in the so called "reservation form“. This is the document that is signed between the two parties - the seller and the buyer. It describes all the rights and obligations of the interested parties.
By signing the reservation form and providing a deposit (reservation fee), you "declare" your serious intentions to purchase the specific property. By doing so, you guarantee yourself the right not to show the home to other buyers until the expiration date (i.e. stop it from being sold).
The amount of the deposit may vary depending on the seller (individual or legal entity) the type of property, and the specific situation. The amount of the reservation is deducted from the value of the property (in some cases refunded) upon completion of the transaction. However, in the case of a refusal to purchase - the amount is lost (i. e. remains for the seller). Or to put it another way, the deposit is the price that the seller keeps due to lost profits - in case of cancellation, and loss of potential customers in the period.
After the reservation period, if you still want to buy the property, the next step is to sign a preliminary contract.
Why is a preliminary contract necessary?
Тhe preliminary contract is an official document which precedes the final contract and, in simple terms, "postpone" the finalisation of the transaction.
Тhe "postpone" in time is necessary in cases where buyers need time to provide the amount needed to pay for the purchase of the home. Or in cases where the seller needs time to carry out all the building work (procuring Act 16), for example, removing his property, etc.
* In case you have the opportunity you could also directly transfer the property with a notarial deed - without reservation and preliminary contract of sale.
By signing a preliminary contract, both parties agree with terms of the purchase. They are also committed to finalizing the transaction and entering into the final contract for the property. (*otherwise, the defaulting party is liable for a penalty.)
We could say that the conclusion of a preliminary contract aims to increase the certainty for the buyers that they will become the owners of the property and for the sellers that they will receive the agreed amount.
The preliminary contract contains all the details of the transaction - full information about the property, price and payment schemes, deadlines for the final contract, penalties for non-performance, etc. Depending on the type of construction (new/old), the buyer (investor/owner), etc. , preliminary contracts can vary considerably. When buying directly from an investor, for example, you will receive a sample preliminary contract drawn up by a lawyer, which is a guarantee of its accuracy and legally sustained, while when buying from an owner, contracts are more a matter of personal agreement.
Artstroy 1 Investment has a qualified team of sales specialists who will advise you on choosing a property from the company's portfolio and help you with the documentation in the entire home buying process - WITHOUT owing you a commission!
It is important to note that the preliminary contract does not transfer the right of ownership. The transaction is finalized and the ownership of the property is transferred upon the execution of the final contract.
What is the final contract?
The final contract of sale and purchase is in fact a notarization of the transaction with a notary who checks the transaction documents and ensures that all legal requirements are met.
Required documents that must be present to complete a transaction are:
- Document of ownership of the seller
- Certificate of tax assessment of the property
- Cadastral sketch/schematic of the property
- Certificate of encumbrances in rem
- Certificate of marital status of the seller
- Certificate of existence or absence of obligations for the seller
*Other documents may be required, depending on the specific situation.
If everything is in order, the parties proceed to the signing of the notarial deed, through which the contract is finally transferred from the seller's possession to the buyer, for the amount agreed in the preliminary contract (or the balance thereof).
Or to put it another way, the buyer is obligated to pay the stipulated amount to acquire the property and the seller is obligated, upon receipt of the amount, to assign the property.
Only after the seller confirms receipt of the money, the notary declares the deed at the registry office.
*In the most common case, after signing the deed, the buyer transfers the amount to the specific bank branch, after which the bank bordereau is returned to the notary, who proceeds to register the transaction with the Registry Agency. Which completes the purchase!
Looking for the best property for you? Take a look at the available properties for sale from Artstroy 1 Investment HERE.
ТAKE A LOOK AT OUR PROPERTIES FOR SALE:
Majestic Sea Village - Townhouses complex between city of Burgas and city of Pomorie
Gated Complex Perla - city of Burgas
For more information, viewing tour and consultation,
contacts us at +359 800 20 888 or +359 886 611 666.
We look forward to your inquiries in our inquiry form HERE!
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