Purchase Features
When contacting a credit institution, you may encounter a number of features that will be decisive in whether you will be given a loan or not.
- At the stage of housing selection, you should contact only accredited construction companies that will inspire confidence in the financial institution.
- A mortgage is issued for real estate if construction is in its final stages.
- A mortgage is issued for a project that has passed the state commission.
- The borrower must, for his part, secure the transaction, for example, by providing property as collateral.
What is the best time to buy?
It's no secret that the closer a property is to the acquisition deadline, the higher its value . Therefore, many citizens purchase real estate that in fact does not yet exist. Many brave souls manage to purchase an apartment that has not yet been built, but only a foundation pit has just been dug for construction. However, such an investment is very risky, because at any moment construction can be frozen, and you will not receive the coveted square meters.
One of the most important conditions for mortgage lending, and according to many realtors, the most profitable investment of your money is buying an apartment with a mortgage from the developer, which is already 70% ready for delivery.
This means that the property has been built, but is not fully ready for use and finishing work is still underway. This reduces the risk that construction will be frozen and gives financial institutions confidence that the money will be spent as intended. And for you, as the future owner, the most profitable thing at this stage is to buy an apartment with a mortgage from the developer. At this moment, the price of the apartment will not yet rise to its main peak , however, you will be 90% sure that the house will be completed on time.
Unstable
The fact is that the vast majority of future new residents purchase an apartment during the construction stage. And this requires some kind of paper called a “preliminary agreement”. There are possible problems with this preliminary document that future new residents should be aware of so as not to encounter big problems and loss of money.
Recently, the Supreme Court of the Russian Federation reviewed the results of a dispute between a resident of St. Petersburg, who began to sue a certain commercial structure. This company, having taken substantial money from a person, “fed” the person for several years with promises to sell him a built apartment, but did not fulfill the promise.
The history of this civil dispute began nine years ago, when a citizen entered into a preliminary agreement for the purchase and sale of an apartment with a commercial structure. The asking price is 17 million rubles for a three-room apartment in a building that has not yet been built. The preliminary agreement included the date of commissioning of the future housing. The document also stated that within 90 days from the date of state registration of ownership of the apartment, the company undertakes to sign the main document with the citizen - a purchase and sale agreement.
And then everything was banal: a year after signing the preliminary contract, the apartment was still not built. The citizen bombarded the businessmen with demands to terminate the contract and return all the money to him. But, as stated in the case materials, these desperate letters were “left unsatisfied” by the commercial structure. In the end, the man’s patience ran out, and four years after signing what turned out to be an empty piece of paper, he went to court.
He demanded that he return the entire amount he paid for the apartment, a penalty for years of using his money - 22 million rubles, a fine for his unwillingness to voluntarily return the money for the apartment to him, and also demanded that he pay his legal costs.
The company, having received a lawsuit, reluctantly returned the money - 17 million rubles - during the trial. The district court recovered from the company only the payment of the state duty at the citizen's claim. The court refused the plaintiff’s desire to obtain a penalty and a fine from unscrupulous businessmen. The St. Petersburg City Court overturned this decision and imposed a fine of 200 thousand rubles on the merchants under the law “On the Protection of Consumer Rights.” The reluctance to return the money cost so much. The citizen was again denied a penalty of 22 million rubles for the fact that the company had been using this money for years.
The man had to appeal to the Supreme Court of the Russian Federation. His Judicial Collegium for Civil Cases agreed with the failed new settler and explained what violations the courts had made.
Businessmen will have to pay a penalty of 22 million rubles for their unwillingness to give up their apartment or return the money.
When local courts considered the request for a penalty, they referred to the law on participation in shared construction. The point is this. It is this law that provides for the payment of a penalty in case of failure to fulfill obligations. The district court told the citizen that his relationship with the company that took the money and promised housing is not regulated by the law on participation in shared construction. The fact is that an agreement on participation in shared construction can only be concluded with the developer. And the company that took the person’s money is an investor who has the right to claim the apartment. The district court also stated that permission to build a house in which the citizen never received housing was obtained before the law on shared-equity construction came into force.
The city court did not argue with these arguments. But the Supreme Court categorically disagreed with such conclusions. And he recalled that back in 2008, the plaintiff signed a preliminary purchase and sale agreement with a certain company, which undertook to sell him a three-room apartment in a building under construction. The citizen deposited the money immediately. The administration of St. Petersburg allowed the construction organization to design and build several residential buildings “at the expense of its own and borrowed funds” back in 2001. And the law on participation in shared construction was adopted five years later. He talks about attracting money from the population and legal entities to the construction of apartment buildings and the emergence of these participants' ownership rights to what they paid for. This law says that it is valid when the money is given and the papers are signed. But after the law on shared construction came into force, that is, after April 1, 2005.
But the Supreme Court noted: if the parties signed a preliminary agreement, which states that they undertake to sign the main agreement later, but the preliminary agreement obliges them to immediately pay the entire purchase amount, then “the courts must qualify such an agreement as an agreement for the sale and purchase of a future immovable property.” subject to advance payment."
So the signed preliminary agreement, according to the Supreme Court, actually represents the main agreement for participation in shared construction, which the parties signed after 2005, when the law on participation in shared construction came into force. So the refusals of local courts, which were overturned by the Supreme Court, will have to be reviewed.
Purchase terms
Let's get acquainted with the basic conditions that must be met in order to become the owner of housing in a new building.
- Very often , a credit institution requires that you contact only those developers who have an agreement with these credit institutions. The fact is that banks also take a lot of risks when issuing mortgages. The house may not be delivered, construction is frozen, and you can refuse mortgage lending through the court, thereby leaving the bank at a loss. Therefore, the credit institution enters into agreements with certain reliable development companies, from which the purchase of real estate is offered for mortgage lending.
- The second condition concerns the timing , which we discussed in the paragraph above. You can purchase real estate only if its construction is at least 70% complete.
- You will need to be prepared to put down a substantial deposit to purchase the property . It can be accrued in the form of cash, and you can also provide your property in the form of a car or apartment as collateral.
- The mortgage term cannot be less than 1 year.
- In addition, you must be a citizen of the Russian Federation and have a residence permit in the region where mortgage lending is issued.
- If possible, you must have a permanent job in order to provide proof of income. But some banks turn a blind eye to this point, because many citizens in our country prefer to work without official employment.
- Also, in addition, each credit institution puts forward its own individual conditions . Therefore, before applying for a mortgage loan, read them carefully; perhaps in some cases you will not meet the bank’s criteria, no matter how hard you try.
Where to start buying an apartment in a new building with a mortgage?
If you use the services of a bank to purchase real estate, you should still insure yourself. Namely, you must carry out preparatory actions in order for the transaction to take place , moreover, the property will be given to you without any serious difficulties.
Let's look at what you need to know when buying an apartment in a new building with a mortgage.
Check legal purity
First of all, you must check the so-called legal purity of the object. The fact is that sometimes developers who sell real estate and offer to purchase housing at attractive prices have some problems with documents and registration of real estate.
Having given the money, you will encounter such problems that it is simply impossible to register ownership due to the fact that the house is recognized as unsafe, already has a legal owner, or simply does not have permission from the administration to sell the apartments.
In order not to be left with your nose, you must independently check all the documents that indicate that the construction is carried out within the framework of the law, the objects are ready for sale, have passed all the necessary checks, and have also been transferred to the balance sheet of the management organization.
If you do not know exactly how to carry out such checks, then you should contact lawyers who will advise you on this issue. Do not skimp on this procedure, because you can become a victim of scammers and pay even more.
Study the house book
Next, you need to study the house register. If you are the original owner of real estate in a new building, then you must purchase this document yourself and fill it out from the developer , and if the property has already been handed over to a management organization, then there.
All information that relates to the property you are purchasing, about the square footage, as well as about the people who will be the owners or live in the property must be entered there.
These documents must also be submitted to the bank.
Download the house register form for the apartment.
What should you pay attention to?
When purchasing real estate with a mortgage loan, you need to pay attention to some details.
So, what to look for when buying an apartment in a new building with a mortgage:
- It is necessary to study whether the house has a management organization and, if so, it is necessary to check whether the apartment has been transferred to its balance sheet, and whether the procedure for transferring real estate from the developer to the management organization has been carried out in accordance with all rules and checks. If the procedure has been performed, be sure to study the acceptance certificates, checking for the presence or absence of any problems.
- Also, it is necessary to get acquainted with the presence or absence of the necessary communications , whether water is supplied to the house, whether the heating system is running, whether contracts have been drawn up with the city water utility, power plant, and so on.
- If you have any benefits or participate in government programs that subsidize you for the purchase of housing, you must also notify the developer and, first of all, the bank that offers you mortgage lending.
Should I contact an agency or realtor?
The question of engaging a realtor as an assistant in the selection of housing options in the non-primary market remains open. Everyone decides for themselves how important the advice of another person is to him for an additional fee. However, we should not forget that a serious agency usually offers not so much a guide to houses under construction and semi-finished objects, but rather legal assistance in choosing a developer and a profitable credit plan.
It’s definitely worth paying an intermediary if:
- a person buys real estate in another city unfamiliar to him;
- the client does not have the opportunity to choose options that fit his criteria;
- the agency has a lawyer on staff who is ready to explain the provisions of the contracts proposed for signature;
- the realtor is ready to take upon himself not only the selection of objects, but also their verification (analysis of the reliability of the developer, obtaining extracts from the Unified State Register of Real Estate, reviewing information about debts and encumbrances).
The procedure for purchasing an apartment with a mortgage in a new building
Next, we will consider the procedure for buying an apartment in a new building with a mortgage.
Where to go?
So, you have chosen the home you intend to purchase under a mortgage loan agreement. Next, you need to take actions that will bring you closer to the desired result in reality.
First of all, you need to decide on a developer company . Find a property that satisfies you in all respects, a developer you trust, and a house that is 70% completed. Thus, having found the desired option, you must contact the developer.
It is with this company that you must enter into an agreement in which you book the option you like. This agreement will contain the characteristics of the property, such as parameters, presence or absence of any problems.
The agreement will have a set validity period, it will specify the terms of the purchase and sale transaction, if you still decide on it, as well as the amount of the down payment.
Next, it is with this agreement that you must contact the credit institution you like to obtain a mortgage loan . You must submit an application to the bank, to which you attach all documents, including the agreement. The bank must review your offer, and if it seems attractive, they will contact you, approve your application, and draw up a mortgage agreement.
What documents will be needed?
The procedure for purchasing an apartment with a mortgage in a new building is somewhat different from the classic sale and purchase and requires certain documents.
First of all, to draw up an agreement between the developer and the borrower, it is necessary to obtain the following package of documents from the owner of the building :
- certificate of ownership of the land plot and real estate built on it;
- a construction permit that was issued by government authorities;
- act of distribution of apartments;
- as well as an investment contract.
If all these documents are available, then you can make copies of them and submit them to the bank. However, this is not necessary, but is most likely necessary for your peace of mind.
But here is the package of documents that you submit to the credit institution and must be drawn up by you :
- your passport as a citizen of the Russian Federation;
- if necessary, a copy of the work record;
- income certificate in form 2-NDFL;
Download a certificate of income of an individual, form 2-NDFL: form, sample. - the investment agreement that you drew up together with the developer;
- copies of the tax return;
Tax return for personal income tax (form 3-NDFL): form, sample. - a copy of the developer’s decision that he is selling apartments;
- copies of your diplomas and if you have a professional certificate.
Additionally, financial institutions reserve the right to require any other documents from you before purchasing an apartment in a new building with a mortgage from the developer. So, if you want to pledge your real estate, as well as a vehicle, you will need to provide documents for them.
How to draw up a contract correctly?
When drawing up a mortgage agreement with a credit institution, you must use the documents and forms available to the lender .
The agreement is drawn up on the basis of a sample specific to this credit institution. Therefore, strictly follow the instructions that the employees give you.
Be sure to enter your passport details correctly. Write down the information from all documents you provide. If possible, fill out the contract in black or blue pen, in a printed, readable font.
If allowed, you can do it on PC. At the same time, the font must be standard, the scale of the letters is acceptable, and also try to avoid spelling and punctuation errors.
Agreement for the sale and purchase of an apartment with a mortgage: form, sample.
Is it necessary and how to register a transaction?
As soon as a mortgage loan is issued to you, the property will transfer from the developer to your ownership under a purchase and sale agreement; this transaction will need to be formalized in Rosreestr .
Despite the fact that the purchase of an apartment with a mortgage in a new building is used, the procedure for registering the transaction in Rosreestr will be the usual one inherent in any purchase and sale agreement . Therefore, do not refuse to properly register the transaction with government authorities, as this procedure will quickly secure you as the owner of the property.
What will you have to spend to complete the transaction?
You will have to spend a lot of money on the process of buying an apartment with a mortgage in a new building. So, you will need to spend money to pay the state fee to complete the transaction . Today, the average in Russia is 2,500 rubles.
Another expense is the preparation of documentation for real estate , such as a cadastral passport, BTI passport. The cost is set individually, depending on the region, as well as the city.
Some management organizations require money from new residents in order to pay the entrance fee. These actions are necessary in order to form the budget of the management organization. This is also a required expense.
The procedure for registering a mortgage agreement with a bank is absolutely free , as it is drawn up in the interests of the credit institution.
Taxes
The seller, that is, the developer, will need to pay 13% of the value of the property as tax as part of the execution of the purchase and sale agreement. The buyer is exempt from such payments.
Duration of the procedure
The processing time for obtaining a mortgage loan is usually no more than 30 days . It is during this period, which begins with the provision of the mortgage agreement, that funds in the amount set by you will be transferred to the seller’s account.
Time frames may vary depending on the specific situation . For example, if a mortgage agreement has been concluded, but the property has not yet been delivered, the agreement between the developer and the buyers for the reservation will be valid for several more months, then by agreement with the buyer, the bank transfers the cost of the property upon expiration of the agreement for the reservation in order to bring the delivery date as close as possible object.
That's all the main stages of buying an apartment in a new building with a mortgage. Today, the mortgage lending procedure has been significantly simplified. This happened due to the fact that this method of payment for the purchase of real estate has been operating in our country for quite a long time, all the pitfalls have been fully studied, and all the nuances have been taken into account.
Therefore, it will not be difficult for you to become a participant in this mortgage lending if you comply with all the established conditions. And we wish you to become the owner of your own home as soon as possible.
Using social programs when applying for a mortgage
Financial institutions can offer especially attractive mortgage rates only to those buyers who meet the criteria for preferential housing loans. There are not many such programs in Russia:
- For families with children, Cabinet Resolution No. 1711. Available to parents raising two or more children, the youngest of whom was born no earlier than January 1, 2021. The down payment on the mortgage can be repaid using a maternity capital certificate. The loan rate cannot exceed 6%. State support in the form of additional interest payments at rates exceeding 6% will last from 3 to 8 years (depending on the number of children). You can get a mortgage until 2022. Housing should not be more expensive than 6 million rubles if the apartment is purchased in the regions, and 12 million rubles if the property is located in Moscow, St. Petersburg or the same regions.
- Military mortgage, law No. 117-FZ. Available to contract military personnel participating in the savings program (NIS) for at least 3 years. In fact, the mechanism works as a phased repayment of a loan for the purchase of housing at the expense of the Ministry of Defense. Only those who served in the army for less than 10 years and were dismissed for their own reasons or due to failure to fulfill the terms of the contract will have to return money to the budget. Those who have given 20 years of service to their homeland will not have to pay anything even after dismissal.
- Far Eastern benefit program. Distributed in the territory of Buryatia, Transbaikalia, Amur, Khabarovsk, Magadan and Sakhalin regions, as well as Kamchatka, Primorye, the Republic of Sakha and Kamchatka. Young families (even those without children) can get a loan at a rate of 2% per annum.
