PURCHASE OF REAL ESTATE - STAGES
Buying real estate is an important decision and whether it is the first property or the next for investment purposes; the first thing you need to think about is how you will finance it. In this article we will look at buying with cash.
Once you have chosen a property according to your criteria: price, location, area, type of construction, there are several main stages.
1. Inspection of the property
This is the first and most important stage in buying a home. The encumbrance check gives you information about limited real estate rights - the right of use, construction, easement, mortgage, foreclosure of any kind.
2. Deposit
Once you have made sure that the property you have chosen does not have any encumbrances, proceed to the payment of a deposit, which guarantees you a hold of the property marketing until the necessary documentation is drawn up. Usually the term of the deposit is one week, during which time is given for preparation of a preliminary contract and specification of the terms for payment of the property, as well as the notarial closing of the transaction.
3. Preliminary contract
The preliminary contract is an important step in the purchase of real estate, as it contains all the essential information regarding the notarization of the transaction: price, date of completion of the transaction, rights and obligations of the parties, time to take possession, penalties for delay or non-performance of contract. On the day of signing the preliminary contract, the buyer pay part of the agreed sale price / usually 10% /. The term of the preliminary contract is agreed by the parties and can be from several weeks to several years.
4. Notarization of the transaction
In case both parties fulfill their obligations under the preliminary contract, it should be the last stage of the purchase of the property, namely - Notarization of the transaction.
The documents for transferring a real estate are the following:
identity documents of the persons part of the transaction;
a document certifying the right of ownership of the seller;
current sketch of the property;
current tax assessment;
certificate of heirs, if the owner has died;
certificate of marital status;
certificate for absence / presence of real encumbrances on the property
declaration of no tax liabilities to the state;
a notarized power of attorney if the transaction will be confessed through a proxy;
Once all the documents have been prepared and reviewed by the selected notary, the parties can proceed to finalize the transaction. Usually, after signing the Notary Deed, the buyer transfers the rest of the amount to the seller's account, and after the bank transfer the buyer returns to the notary with the bank border as proof and follows registration of the transaction in the Registry Agency, which is officially finalized. There is no obstacle, however, for the sale price to be paid before or after the finalization of the transaction, depending on what is agreed in the Notary Deed. The issuance of a new Notary Deed in the name of the buyer takes about a week
5. Registration with the tax office and transfer of accounts
Once you have received the new Notary Deed in your name, you should register the property with the local tax office, as well as change the bills for electricity, water and heating, if any. The term for registration in the tax office is two months, for changing the accounts is one month. In case the property is purchased by foreign citizens, they should be registered in the Bulstat Register, where they receive an individual number. The term for registration in the Bulstat Register is 7 days from the date of the transaction. In case these deadlines are not met, the persons are subject to administrative sanctions.
