When is money transferred when buying an apartment: before or after registration

It's no secret that for most people a real estate transaction is a very nervous and exciting process. During the preparation of a transaction, tension, as a rule, constantly increases, and its apogee occurs at the moment of transfer of money from the buyer to the seller - the relationship between the parties to the transaction has never been like that before; mutual distrust almost always takes over. What if the buyer gives the money but does not receive the apartment? What if he gets an apartment, but doesn't give the money? In order to minimize these experiences, there are several ways of mutual settlement, which we will tell you about today.

Features of buying an apartment in a new building

The sale of apartments in new buildings is carried out by legal entities. Settlements with them should be made only in non-cash form in any of several ways:

According to Art. 861 Civil Code of the Russian Federation

Transfer from the buyer's account to the seller's account.
Bank letter of credit.
Secure transfer service.
With the participation of the bank in the mortgage.
Safety deposit box (rare).

Important! Typically, money is transferred to developers' current accounts after transactions are registered. But you need to read the terms of the contract. If an agreement on shared participation in construction is drawn up, the seller has the right to receive payment only after registering the DDU with Rosreestr.

This is directly stated in paragraph 1 of Art. 15.5 Federal Law No. 214-FZ “Features of opening, maintaining and closing an escrow account...”

Direct payment by bank transfer

Cashless payment - transfer of funds to a card. This is also not the safest method, since the question immediately arises, what comes first: payment or re-registration of ownership of the apartment? Without notary support, one of the parties may be left with nothing: the buyer may give away money and not receive housing, and the seller may “donate” an apartment without receiving remuneration.

What should be the procedure?

Lawyers advise doing the following:

First, prepare documents for registering the transaction in Rosreestr, including an unsigned real estate purchase and sale agreement;
Then draw up a receipt for the transfer of money, which should be kept by the seller;
Then go to the bank with a package of papers and transfer funds in the presence of the seller;
Finally, receive a signed receipt from the seller confirming receipt of money and register the apartment purchase and sale agreement with Rosreestr.

When making cashless payments, do not transfer money to the seller and do not register ownership of the buyer on parole; the safest thing is to involve a notary as a curator of the transaction.

Advantages of transferring to a card

The money is transferred by the bank, which reduces the likelihood of fraud at the stage of transferring funds.
If both parties to the transaction use the services of the same bank, this will save on commissions and reduce the time of transferring funds.

Minuses

After paying for the apartment, difficulties may arise with registering ownership. The money can only be returned through the courts.
Part of the amount will be “eaten up” by interest when transferring funds.
Payment is possible only in national currency.

Features of purchasing real estate on the secondary market

If an apartment is purchased on the secondary market, individuals usually participate in the transaction. Less often, the seller is a legal entity:

for example, a real estate agency that bought real estate under a fixed-term program from another person and then decided to sell it at a premium.

If the seller is an individual, any payment methods can be used: both cash and non-cash. If the apartment is purchased from an agency, only non-cash payment options are suitable.

Advance agreement for purchasing an apartment

What is the difference between an advance and a deposit when buying an apartment?

Escrow account (or escrow account)

An escrow account is a bank account used to deposit funds from one person to be released to another after a transaction is completed.

Simply put, the buyer of the property deposits a certain amount into the escrow account, after which this amount is “frozen.”

The escrow agent, as a guarantor of the transaction, establishes the fact that the terms of the contract have been fulfilled. Once the beneficiary submits the necessary documents, he receives the money. Until this moment, the owner of the escrow account funds is the depositor. However, he cannot dispose of them.

Calculation procedure:

the buyer opens an escrow account and transfers the required amount to it;
the bank “freezes” the money in the account;
the seller brings to the bank an extract from the Unified State Register of Real Estate about the new owner of the apartment;
The bank transfers money from the escrow account to the seller's account.

The bank has the right to receive payment for its services. The buyer and seller, by agreement, undertake this obligation. If the contract does not specify the amount of remuneration, then they are guided by the price that other escrow agents charge for similar services.

Payment methods and procedure for transferring money to the seller

As mentioned earlier, the parties independently determine the methods and procedure for transferring money. This must be reflected in the contract.

But there are certain risks:

For the buyer, if the seller receives money before registering the transfer of ownership. If Rosreestr refuses registration, and the seller has already spent the funds by that time, it will be problematic to get them back. If the situation cannot be resolved peacefully, you will have to go to court.
For the seller, if the buyer transfers money after registration with Rosreestr. There is a possibility that he will never see the amount for the apartment, and the deal will have to be challenged in court due to the buyer’s failure to fulfill obligations under the contract.

Legal advice: the best option is to make an advance payment through safe deposit boxes. An advance is usually transferred to the seller in the amount of 10-20% of the transaction amount. The rest is transferred after registration upon presentation of documents confirming the transfer of ownership to the buyer.

Bank safe deposit box

First, the buyer needs to rent a safe deposit box, then put money there in the presence of the seller. A bank employee will check the authenticity of the banknotes. Two cells can also be rented: one contains an advance payment, the second contains the balance received after registration.

When opening a cell, an agreement is drawn up indicating the amount and conditions for receiving money, as well as full name. and the seller’s passport details.

Letter of Credit

A letter of credit can be irrevocable or open. In the first case, it means obtaining the permission of the real estate seller; this option is used most often. An open letter of credit does not require approval from the seller.

With a letter of credit, the bank acts as an intermediary. The buyer signs an agreement with him to open an account, then transfers there an amount equal to the cost of the property being purchased. After registering the transaction, the seller contacts the bank to withdraw money, presenting an extract from the Unified State Register of Real Estate on the transfer of ownership.

From hand to hand

This is the simplest calculation option:

Transfer of advance payment before registration of the transaction, the balance - after.
Transfer at the time of submission of documents for registration. There are risks for the buyer, they are described above.
Transfer of the entire amount after registration of ownership to the buyer. There are risks for the seller.

Note! It is recommended to hand over cash in a quiet and well-lit room. The seller will need time to count the bills. It is advisable to film the process, and after recalculation, take a receipt from him confirming receipt of the amount.

Secure transfer service

The secure payment service works simply:

The buyer transfers the money to a special account opened at the bank.
The bank requests information from Rosreestr about registering the transaction.
If registration is confirmed, the money is transferred to the seller's account.

Many banks have such services. For example, in Sberbank, VTB, Raiffeisenbank.

Bank transfer

This method is similar to transferring money in cash, the only difference being that the buyer independently transfers funds from his account to the seller’s account.

The mechanism is simple:

The parties enter into an agreement. An advance payment is available upon request.
The transaction is registered.
After registration, the balance of the amount goes to the seller by bank transfer.

Features of a mortgage transaction

When applying for a mortgage, the bank becomes a full-fledged participant in the transaction and dictates certain conditions to the client. Monitors the financial organization and the settlement process. Most often, banks choose to use a safe deposit box and sometimes enter into agreements to open a letter of credit. It is rare to see a mixed type with prepayment - the buyer transfers some part to the owner before registration, and credit funds - after.

Transferring money from hand to hand, even with a receipt written by the creditor, is not encouraged. In any case, the buyer should be prepared for the fact that he will have no alternative. It is advisable to clarify this issue in advance in order to reach an agreement with the seller.

Payment to the seller is a strategically important stage of the transaction and must be approached responsibly. Now you know when it is better to pay money and what tools you can use to reduce existing risks.

In any case, ask the seller to draw up a receipt, if necessary, use the services of intermediary banks and indicate the procedure for transferring money in the main purchase and sale agreement. Reducing potential risks is also facilitated by checking the legal purity of the purchased property.

The transfer of money when buying an apartment from the seller to the buyer is the final and very important stage of the real estate purchase and sale transaction. The parties try to come to an agreement that would minimize the risks for each participant in the legal relationship.

If the apartment is mortgaged

The purchased apartment may be pledged to the bank under a mortgage or a loan secured by real estate.
There is nothing wrong with this, but the buyer will have to make an advance payment equal to the amount of the outstanding debt to remove the encumbrances. The encumbrance is lifted within three working days. There are two options here:

Pay the cost in full and submit documents for registration. The seller must pay off the mortgage immediately; until then, registration activities will be suspended.
Make an advance payment, wait for the encumbrances to be removed, then contact Rosreestr or the MFC to register the transfer of ownership and pay the remaining cost of the apartment.

Important! You need to carefully check the seller's credit documents and make sure that the advance is actually being made to close the debt to the bank. The buyer has the right to request a certificate of the balance of debt.

Payment via safe deposit box

A bank safe deposit box is a small safe in a special bank storage facility (depository), which it rents out for storing any things - money, documents, valuables, etc.

This is the most common method of transferring money. It's quite simple:

You rent a safe at a bank depository and put money in it.
The seller will be able to access it only by fulfilling certain conditions

Before putting money into a safe deposit box, the entire amount must be counted and checked for authenticity in the presence of the seller at the bank. Bank employees will pack the money into neat bundles and seal it. After this, the money is placed in the cell. If you want to be on the safe side, rent two cells. You can put money in one, and in the other - a receipt stating that the seller received it. When all the terms of the contract are met and the transfer of rights to the apartment is registered, the seller and buyer will present all documents to the bank. After this, the seller will receive the money, and the buyer will receive a receipt.

Before putting money into the safe deposit box, the seller, buyer and bank representative enter into an additional agreement, which specifies the procedure for accessing the safe deposit boxes. This document specifies the conditions under which the seller will be able to receive money. Usually, to do this, it is enough for him to provide a passport and his copy of the purchase and sale agreement with the stamp of the registration chamber and a record that the transaction has been registered and the apartment has become the property of the new owner. If the registration is electronic, a signed agreement and an extract from the Unified State Register addressed to the buyer will do.

For your own safety, you can put a receipt stating that the seller received the money in a separate cell with mirror access conditions. This way, you can confirm settlements for the transaction at any time: as soon as the seller takes the money, you will receive a receipt.

It happens that you don’t have the entire amount in cash on hand. For example, if the money is in different banks and in different accounts, or the bank charges a large commission for a one-time withdrawal of a large amount. In order not to keep money at home or carry it in a taxi or subway, you can remove another cell, this time just for yourself, and gradually put money there until the full amount is collected. Then you can count it in the bank and transfer it to the cell for the transaction.

Renting a cell costs 1000–5000 rubles per month; for an additional agreement you will have to pay another 2000–5000 rubles. So this is not only one of the safest, but also a fairly cheap way of settlement.

How does the purchase and sale of real estate occur? Step-by-step instruction

The greatest risk for the buyer is cash payment, because...
When applying for a mortgage, the bank independently checks the apartment for legal purity. What the whole procedure looks like:

The seller collects documents for the property being sold and presents them to the buyer.
The parties agree on the transaction and payment details.
Before signing the contract, the seller orders an extract from the house register and a certificate of absence of debts for housing and communal services from the MFC. The extract is needed to confirm the absence of registered persons in the living space.
The agreement must be signed in at least three copies; the registrar will need one.
Documents are submitted to Rosreestr; the presence of both parties to the transaction is required.
After 10-12 days, the buyer receives an extract from the Unified State Register of Real Estate, where he is indicated as the new owner.

If the seller needs a statement to receive money, it is given to him and then presented to the bank. When paying in cash, it is important to get a receipt from it.

Contents and sample receipt for receipt of money for an apartment

A receipt is issued to confirm receipt of money by the seller.

Sample receipt

It contains the following information:

FULL NAME. seller, passport series and number, registration address;
address of the apartment being sold;
sum;
wording about payment in full;
date of compilation and signature.

Documentation

To conduct and register a transaction you will need:

Contract of sale.
Extract from the Unified State Register for the seller.
Passports of the parties.
Explication (optional).
Certificate of absence of debts for housing and communal services.
Loan agreement, if the property is pledged (only needed by the buyer, the registrar does not require it).
Receipt for payment of state duty.

State duty

For re-registration of ownership of an apartment, a fee of 2,000 rubles is paid.

Payment options for real estate transactions

If you use the services of a real estate company, cash transactions occur as follows. When paying in cash, the seller and buyer meet at the agency's office (a certified company operating in accordance with standards has separate rooms where payments can be made, in addition, they have machines for counting and checking banknotes). The parties to the transaction sign the purchase and sale agreement, the money is transferred, and the buyer issues a receipt indicating that the payment has been made. After which, both parties to the transaction, usually in the same car and accompanied by a realtor, go to the Rosreestr Office to submit documents for registration of ownership. Ten days later, if the decision of the Rosreestr Office is positive, the parties take away the documents for the apartment. This method is more convenient than independent payment between the parties in a car or in a purchased apartment, but it is difficult to call it ideal from a security point of view.

Lawyer's answers to frequently asked questions

What is the difference between a deposit and an advance?

The advance payment is made as confirmation of the intention to buy an apartment. If the buyer refuses the transaction, he can return it. The deposit is not returned to the buyer, but if the seller refuses the contract, it is returned to the buyer in double amount.

How to pay the seller if the apartment is purchased with a mortgage?

The payment method depends on the specific bank. Sometimes the advance payment is made by the buyer himself, and the rest is transferred to the seller by the bank. A letter of credit, safe deposit box or secure payment service may be used.

Is it possible to pay for an apartment in foreign currency?

Yes, but the contract indicates the cost in rubles at the exchange rate at the time of signing.

Who controls the calculations if a realtor is involved in the transaction?

A realtor can represent the interests of the seller or buyer. His responsibilities depend on the terms of the contract with him, but usually realtors accompany transactions from viewing the apartment to registering ownership.

Can Rosreestr refuse registration if the advance payment has already been transferred to the seller?

Yes. The presence of encumbrances may serve as a basis for refusal of registration. Also, problems often arise when selling real estate to minors or incapacitated people, especially if permission from the guardianship authority has not been obtained. The advance payment must be returned to the buyer.

2nd method: payments via letter of credit

Globally, a letter of credit account is exactly the same as a safe deposit box, only virtual. And the methods for opening it are approximately the same as in the case of a physical safe deposit box, the only difference is that the seller or buyer, after providing the documents, does not go down to any storage facility, but simply wait for the bank to transfer the money according to the details they previously specified.

However, this method has several significant advantages compared to a safe deposit box: the bank will never be able to declare that the account was empty and there is nothing to transfer from it. In addition, bank employees will count and check all banknotes for authenticity free of charge if the buyer deposits them in cash.

As for the downsides, a letter of credit can also be opened if the seller provides a fake Unified State Register, but it is much easier to track this point and respond correctly to it. Money transfers for large amounts usually take several days, so the buyer has the opportunity to notify the bank if a problem is detected and try to stop the transaction.

Another disadvantage of settlements through a letter of credit is the possibility of revoking the bank’s license. In this case, all funds in the accounts will be frozen and the seller will have to join the general queue along with other bank creditors. If there are not enough funds in the accounts for payments, you may never see your money again, because... funds on letters of credit are not subject to mandatory deposit insurance.

To avoid these problems, it is best to choose exclusively large banks for settlements on a purchase and sale transaction, the likelihood of their licenses being revoked is extremely low, and the staff is the most competent and more careful in checking the documents provided to them.

Other safety tips

Be vigilant and check all documents carefully. It is advisable to make transactions with the participation of the bank: this will be an additional guarantee of security.
Unless necessary, do not break the cost of the property into several smaller amounts.
Make sure that the real price of the apartment is stated in the contract.
Transfer money to the seller only after registering your agreement with Rosreestr.
Do not give unauthorized persons access to your safe deposit box.
Request a receipt only for direct payment for the apartment. In all other cases there is no need for it.

How to convey correctly: possible options

From hand to hand

After signing the purchase and sale agreement and registering the transaction with a notary, settlements take place between the buyer and seller. The easiest way to transfer money for an apartment from hand to hand , but this option is also considered the most dangerous.

The bills may be counterfeit.
Leaving the notary's office or any other place, you may encounter criminals who will steal a case with cash.

To ensure the security of a transaction, you need to either hire security or rent a meeting room at a bank for the transaction and immediately after receiving the money place it on a deposit or current account. But this does not eliminate, for example, such a problem as transferring part of the amount to the buyer with an oral promise to pay the missing amount a little later. If this happens after the agreement has been signed and registered, then problems cannot be avoided.

Advantages : Lack of formalities and additional expenses.

Disadvantages : Greater risks in connection with the transfer of cash.

You can find out how to buy and sell an apartment for cash here.

Bank safe deposit box

Another way to secure a transaction is to place money in a safe deposit box . This is very convenient and for renting a safe for only 3-14 days, while the registration of the contract lasts, you will have to pay no more than 1 thousand rubles. Cash will be stored in a safe and only the buyer, seller and the list of persons specified in the contract will have access to it.

The essence of the scheme is simple:

The buyer rents a locker and places the entire amount under the contract into it on the day of the transaction. This is usually done in the presence of the seller.
After this, the seller of the apartment is allowed to the safe only after providing him with the original purchase and sale agreement with a state registration mark.

The bank carefully checks this information. Even if one of the participants loses the key to the safe, this will not cause problems, since the bank will not allow anyone into its depository without checking the transaction documents. If the deal falls through, the buyer will be able to withdraw the funds within a week.

With the help of safes, the lion's share of payments in the secondary housing market is made.

With new buildings, everything is not so simple, where payments take place in the office of the developer or his intermediaries or by bank transfer. For payment, not one, but many cells can be rented if the transaction is complex and involves the sale and purchase of other real estate properties.

Advantages: Cheap and safe way to store large amounts.

Disadvantage: It is necessary to draw up a lease agreement for a safe deposit box, and in the event of a bank bankruptcy, these funds are not covered by deposit insurance.

The process of transferring funds through a safe deposit box is discussed in detail in this article.

Letter of Credit

Another popular option for secure payments in real estate transactions is a letter of credit .

The seller of the apartment opens a special bank account.
The purchase and sale agreement itself contains a clause stating that payments will be made using a letter of credit. The terms and procedure for payments are indicated.
Next, the buyer transfers the entire required amount to the letter of credit account.
After state registration of the transaction, the seller of the apartment comes to the bank and asks to execute the payer’s instructions under the letter of credit.
The bank checks all documents, especially the bill of sale with a state registration mark, and issues the required amount.
The transaction is completed by signing the acceptance certificate for the transfer of the apartment or house.

Account opening costs are usually the responsibility of the buyer. The size of the commission can range from 0.5 to 2-5% of the amount, which may not suit all participants in the transaction. Advantages: Transaction security.

Disadvantages: High bank commission for opening an account and cashing out funds.

Cash at the notary

If you don’t want to deal with banks, you can always make payments directly at the notary’s office, where the purchase and sale agreement is signed. Using a machine to verify the authenticity of banknotes, you can count and verify the entire amount.

But no one guarantees safety after you leave the office with money. In addition, state registration of an agreement takes at least 1-3 days (and on average two weeks) and before it occurs, there is no need to rush to transfer funds.

At any time, the seller can cancel the state registration procedure and keep the apartment for himself . It will be very difficult to get the money back from him, given the workload of our courts and the high level of corruption.

You can enter into an agreement stipulating that payment will occur immediately after registration, but these are also additional risks. That is why most participants in real estate transactions choose settlement schemes with the participation of banks or intermediaries that they trust.

Advantages: Quick receipt of cash.

Disadvantages: High risk of money theft on the street or delays in payment.

Deposit with a notary

You can negotiate differently with a notary.

An agreement is drawn up between the buyer, seller and notary, which outlines all the nuances of paying for the apartment.
For settlements, a bank account is opened (notary deposit) and the buyer deposits the required amount there.
Further, as soon as the state registration of the deed of sale occurs, the notary gives the seller money upon presentation of the contract with a mark and a passport.
Funds can be transferred to the account number specified in the contract and agreement.
After completing the payments, a certificate is issued confirming the issuance of money from the notary's deposit, which serves as a replacement for the seller's receipt.

Before agreeing to such a payment scheme, you need to carefully check the reputation of the notary and whether he has licenses to work. In fact, in this case, the notary acts as an ordinary intermediary with all the ensuing risks . He can disappear with the money and deceive not only you, but also many other clients.

Even if he turns out to be conscientious, this calculation scheme cannot be called flawless. To transfer money or open an account you will need to pay a certain commission (up to 3%). In addition, not all notaries provide their deposits for transactions.

Advantages: Transaction security.

Disadvantages: High commission for opening an account and transferring from account to account or cashing out plus payment for notary services (minimum 1.5 thousand rubles).

Cashless payments

Bank transfer is a simple payment method, but it involves costs for bank services . The buyer places money for the apartment into his current account and immediately after state registration transfers it to the seller’s account.

At any time, he can confirm that he transferred the money simply by issuing a certificate from the bank. The seller will not be able to manipulate the buyer by proving that he did not receive the money. If you stipulate this scheme in the purchase and sale agreement, then no problem should arise.

If the money is not transferred within the due date, the seller has the right to demand cancellation of state registration and the purchase and sale transaction.

Advantages: All transactions with money are documented.

Disadvantages: Commission for opening an account, transferring and cashing out.

Payment through an agency

The transfer of funds can also take place at the office of a real estate agency (read about support for the purchase and sale of an apartment here). This is quite convenient, because here you can immediately pay with the realtor, count the money in a separate room and use the services of an invited notary.

The buyer hands over cash to the seller and a sales contract is signed, as well as a receipt stating that the money has been received.
Next, a joint visit to the Registration Chamber is usually practiced to submit documents for state registration (how to obtain state registration through the MFC?).
After a certain period of time, the documents are taken away, and the buyer becomes the full owner of the apartment (what to do after buying an apartment?).

Advantages: Minimum costs.

Disadvantages: State registration can be appealed by the seller and a lengthy trial will begin. The money will already be transferred.

What's the best way to protect yourself?

According to Art. 223 of the Civil Code of the Russian Federation, the right of ownership under a real estate contract arises from the moment of its state registration. Before this, the buyer has no right to dispose of the property, since the ownership of it remains with the seller.

To reduce risks:

It is better to use schemes where money is issued after checking the bill of sale and state registration mark. Then an encumbrance is placed on the property. To remove it, you will need to show a receipt or other document confirming payment.
You should not rush to transfer a large deposit to the seller, especially if you have any doubts about the person himself or your readiness to buy an apartment. Formally, in case of refusal of a transaction without reason, the seller is obliged not only to return the advance, but to do so in double amount.
But in practice, such disputes sometimes end in court, and in the worst case, in the police. To secure a deal, 10-20% of the cost of housing is quite enough. The remaining amount may be at the seller’s disposal in 1-2 weeks.
If you change your mind about buying an apartment, you will simply lose all the funds you paid as a deposit.
If you are afraid that the seller will not check people out of the apartment, then you can consider a two-step settlement process. For example, rent not one, but two cells. In the second, place the remaining amount for the apartment, which will become available only after presenting a certificate of registered persons or an extract from the House Register.