Is pre-buying an apartment profitable?
Due to the increase in the price of apartments in addition to the decrease in the purchasing power of customers in recent years, pre-purchase contracts of apartments have been very prosperous. Along with the increase of housing pre-purchase contracts, legal disputes related to it have also grown significantly. In many cases where people have bought half-built or even unbuilt apartments, they bought these apartments and the contracts were closed. The buyer imagined that he was able to spend his money on pre-purchasing an apartment under the right conditions and under the market price, but after some time he realized that there was no house available and the seller put a hat on his head.
The reason for the increase of these frauds is that in this kind of property transactions, it is not possible for the buyer to evaluate all the properties of the property at a glance, and with the simple expression of the property, the buyer can see the buyer and he is aware of all the advantages and disadvantages of the transaction. will be responsible. When the apartment pre-purchase agreement is written, there is still no house or the house in question is not complete. Therefore, it is obligatory and necessary to draw up a principled and detailed contract in this type of transaction.
Some conditions in the apartment pre-purchase contracts can prevent these issues. For this purpose, the parties must be extremely careful in setting up the pre-purchase agreement for the apartment, and the oral agreement alone may not resolve the ambiguities of the parties; Because each person’s understanding of agreements is different and ultimately this may cause disputes. Therefore, all conditions and agreements must be written and signed by the parties.
What is the advance purchase of an apartment?
As the name suggests, pre-buying an apartment literally means before buying. This term is used in many transactions. Mainly in the field of real estate, those properties that are purchased before they are completed and before they are habitable are called pre-purchase apartments.
In order not to lose your hat in the apartment pre-purchase transactions, you must do the following carefully so that the percentage of apartment pre-purchase problems reaches its minimum level.
View and confirm the ownership document
Before you pay any amount as pre-purchase of an apartment to the builder, it is better to see the ownership document of the desired property and get its confirmation from the registration organization in normal cities and the organization of free zones in these areas.
Obtaining the document and legal permission for construction from the competent legal authorities after the transaction
In case of signing the purchase agreement, it is recommended to follow up on receiving and transferring the official document from the competent authority. In some cases, it has been observed that even after the units have been delivered and people have lived in them, the units have been confiscated due to the lack of documents and the large debts that the builders of these apartments have to the banks.
Receiving the latest audit balance sheet of the manufacturing company and its analysis by a knowledgeable financial consultant
The company’s audit balance sheet shows the exact amount of the company’s debt compared to their assets. In the audit balance sheet of most fraudulent construction companies, the ratio of assets to liabilities is negative, which indicates the complete bankruptcy of the construction company.
In relation to project management, you should make your request for accurate and regular reporting, which shows the physical progress of the work and how the project is managed.
Visiting the project site frequently and observing the physical progress of the work in accordance with the manufacturer’s commitment and payments. Pay attention that distance should not prevent timely visits.
The latest changes and developments related to the company’s board members should be reviewed through the country’s official newspaper website. In some cases, the identity of the board members of fraudulent companies is fake. This means that the CEO of the company is another person who is unable to operate due to debt and bankruptcy, and another person has been formally introduced as the CEO.
Don’t be fooled by various advertisements related to the pre-purchase of units that are done through banners, billboards, written, visual and audio media, parties and celebrations.
Analysis of the latest audit balance sheet of the manufacturing company
Note that the property you are looking for should not be mortgaged by the bank. Even at the time of delivery, get the property deed and don’t be satisfied with the affidavit.
Note that sometimes mass builders who engage in pre-sale are faced with liquidity problems and start pre-selling their apartments without a significant percentage of the project being completed. Beware of these mass builders and avoid buying from them.
Some of these mass builders have lawyers who make their illegal and illegal activities look legal and justifiable with tricks to defeat their victims in case of complaints and non-delivery of units. Do not pay attention to the arguments of these lawyers and follow up your complaints with legal authorities.
Before buying commercial, office and residential units that have a high price, it is recommended to consult with a legal and financial advisor.
Due to inflation, it is not cost-effective to buy units that you will have to wait a long time to receive and their delivery time is long. Instead of sleeping your capital in these projects, you can invest in safer places.
Other points of analysis of the latest audit balance sheet of the manufacturing company
Some of these companies spread various ways to attract buyers, among which we can mention attracting famous people in different fields as primary buyers or offering lottery tickets and prizes such as cars to buyers.
The purchase should be done in installments and the progress of the work should be closely observed once in a while.
Calculate and include the delay damage in the contract in a way that covers the minimum losses caused by 60% inflation.
It is better to check the status of the construction company’s brand from the competent authorities. Here, the brand means the company’s reputation and history, which can be collected in free zones through the organization of free zones and in other cities through the province’s general road and urban development department.
Advantages and disadvantages of pre-buying an apartment
Advantages of pre-buying an apartment
Due to the lack of completion of the property, without a doubt the pre-purchase price of the apartment is a bit cheaper than the prices of ready-to-deliver apartments, and after the completion of the property, if the market is in the same condition, the buyer will be able to sell his purchased apartment at a higher price, so it is possible He said that the pre-purchase of the apartment has added value for the buyer.
In transactions where properties are ready for sale, the buyer must return the contract amount within a maximum period of 2 months based on the agreement of the parties; But in pre-purchase transactions, the contract amount is in stages and will be paid during the construction stages. Therefore, the buyer will have the opportunity to use other financial resources and will have more purchasing power to buy the desired property.
In ready-made apartments, the interior design is based on the taste of the builder, and if the interior components are renovated, the buyer will bear heavy costs, but in the pre-purchase of the apartment, the design and interior components of the property can be changed according to the buyer’s taste.
In ready-made buildings, only the facade components of the building can be seen, but in the pre-purchase of the apartment, all the stages of construction and the quality of the interior materials can be seen by the buyer.
Disadvantages of pre-buying an apartment
The possibility of not delivering the property on time from the manufacturer
The possibility of non-implementation of materials according to the contract by the manufacturer
The possibility of the project not being completed during the market recession and due to the lack of motivation of the builder
The possibility of selling the property to several people
The possibility of fraud by unreliable companies
The possibility of obtaining large bank loans on the parent document and non-settlement, which must be paid by the buyer in case of non-payment of installments.
The possibility of not obtaining permission to finish the work and not paying the fine to the municipality, which will be borne by the buyer.
The difference in the pre-purchase price of the apartment
One of the common methods of becoming a homeowner is to participate in the construction of residential complexes. In the form of cooperative projects, housing applicants enter into a contract with a certain income, which is often less than half of the total price of the apartment. In the next step, by gradually injecting money, they can gradually complete the payment of the price specified in the contract. Research shows that many projects have been opened in the southwest of Qom and their units are pre-purchased. For example, in Zafaranieh region, despite the presence of many residential towers, some of its units are still empty.
Tips for pre-buying an apartment
As mentioned, the money in the pre-purchase transactions of the apartment is such that the buyer must first hand over a specific amount to the seller as an advance payment, and the rest of the money must be paid in specific installments until receiving the apartment unit. The amounts to be paid in the pre-purchase of the apartment are different, therefore, depending on the amount, different methods of payment can be used. Since there are limitations in many methods that make it impossible to exchange money in large amounts, you should choose the appropriate method according to the amount of money.
How to pay in advance to buy an apartment
The deposit required for the pre-purchase of these units is about 100 million tomans and after this stage, the pre-contract will be drawn up in the name of the buyer. The terms of payment differ according to the size and advance payment, but for example, for a 100 square meter unit, in addition to the initial advance payment of 100 million Tomans, 110 million Tomans must be paid every two months until the project is delivered.
Delivery time will be 36 months after excavation. While for the purchase of a newly built apartment unit ready for delivery in the area of Zafaranieh town, according to the location, an average of 37 to 40 million tomans must be paid for each square meter. Based on this, the price of a 100 square meter unit ready for delivery is 4 billion tomans on average, which will be 43% more expensive compared to the pre-purchase price of 2.8 billion tomans.
Transfer money from card to card
One of the most common ways to pay money in people’s lives is transferring from card to card because it is easily done and available to the public; However, according to the banking systems and the announced restrictions, people are only able to pay amounts less than 10 million Tomans, and other methods should be used for large amounts, so this method is suitable for small amounts, or in other words, for paying the deposit amount.
People should note that transferring money from card to card can cause problems for them, so this method should be chosen more carefully and other methods should be used if the other person is not trusted.
Through personal checks
Personal checks are those checks that people have received using their financial account in banks and use it in their transactions. As most people know, the probability of these checks being misplaced or in other words not being paid on time is very high and it can cause problems for the seller and the property owner.
This method of payment can be very dangerous for the seller due to the high amount and the possibility of the check being bounced, so it is recommended to use this method only if you are sure of the credit of the buyer and the owner of the check, because if the check is bounced, in addition to the problems that may arise for you create, the probability that money will not be received in the end will be very high. Therefore, it is recommended not to use this method as much as possible.
Bank checks
Bank checks, which include two types, are one of the best ways to pay money in real estate transactions and can bring high confidence to people; Because the desired check will be guaranteed to be paid due to the issuance by the bank.
Guaranteed bank check
Bank checks are issued according to people’s bank accounts and their balance, and they are valid for the bank in question. In other words, people can withdraw money only in the branches of the same bank. These types of checks are also known as coded checks and have many advantages. One of the best ways to do real estate transactions is to use guaranteed checks that have sufficient credit.
Guaranteed interbank check
This category of checks can also be issued by banks with different amounts according to the balance of people’s accounts. Interbank checks are valid among all banks and can be paid in different banks according to the specifications of the check. In other words, people submit their requests to the bank according to their needs and conditions, and the bank issues checks in the name of the person or other people according to the account balance of the person; But in the end, only the people in whose name the check was issued will be able to receive the desired amount and no one can replace him.
People should be careful that in case of cancellation of the transaction, these checks should be received by the seller first and then the transfer of money should be done. Therefore, this may cause problems for people; Because if the seller intends to be inconsistent, it will not be possible to withdraw the check and transfer the money.
Considering the mentioned methods and the limitations of some of them and their possible problems, the best way to pay money in real estate transactions are guaranteed bank checks that are easily receivable and have sufficient credit due to the issuance by the bank.
Do you need to get free advice for pre-buying an apartment?
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