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Stages in the purchase of real estate

Posted by RealinaEstate on 30.01.2020

What do you need to know about buying real estate?

Determination of the characteristics of the searched property
The characteristics of a property are numerous and require careful consideration. You need to know which are the features you will not compromise with and those that are not so important to you. The main ones are: area, location, area, floor plan, type of construction, exposure, internal layout, panorama, surrounding infrastructure and others. If you are not clear which features you can or cannot
compromise, you are likely to wander around looking for a non-existent property and miss out on the best deals.

  1. Finding funds to finance the purchase
    The funds to buy are another very important condition to get the desired property. The options are well known - savings, funds from the sale of other assets,
    bank lending, borrowing from non-financial institutions, etc. If you do not have personal funds to invest, you should explore the possibility of funding from other sources. A common mistake made by customers buying with credit is to look for a property before they have checked how likely it is that the bank will lend to them.
    the required amount. Choosing the most suitable financial institution is a complex process. Your advisor agent should know and have the terms and conditions for
    mortgage lending of most banks and thus, save you the time and effort of researching them. This information is very valuable, difficult to collect, difficult to compare, difficult to analyze and therefore be cautious and trust only professionally trained advisors.
    Securing funds for the purchase should precede the property selection process, otherwise you are likely to waste your time and that of many others.
  2. Viewings and property selection
    Arranging viewings seems to be one of the easiest moments when buying a property Potential buyers have at their disposal not a few sources of information about the properties available on the market - newspapers, magazines, specialized websites, etc. You should know that only a fraction of all properties on offer are advertised in the media.
    It takes at least a few weeks to thoroughly monitor all the offerings on the property market to get your baseline database of properties. It is good to know that in private property for sale listings, prices are not always in line with market conditions and in some cases are highly inflated. After consulting with a broker and engaging in negotiations, it is possible to achieve a better price and terms of the deal.
    Once you have clarified the characteristics of your desired property it is your turn to arrange viewings. Choosing the most suitable, advantageous and satisfying for all
    Buyer's proposal requirements, in most cases, require the allocation of very valuable time. Many of the offers published in the media are not as described and in some cases there is a lot of misleading information. It is necessary to have the knowledge to look around and spot the hidden flaws. After consultation about the condition of
    The market intermediary helps to specify your search, selects and chooses the most suitable offers for you.
    Even more complicated is the process of selecting a property that is still under construction. It is necessary to have and to get to know in detail the construction documents, deadlines for execution and the degree of completion. The most important thing to watch out for is the security of the deal - encumbered properties, builders' credit indebtedness, freehold and third party claims. The buyer does not always have the competence and information to ascertain this before the transaction and can easily be misled if not sufficiently informed. Ensuring
    The security of the transaction is one of the main duties of brokers and you must demand it if you use their services.
  3. Conducting commercial negotiations
    In order to achieve the terms you want, which differ from the original offer but are negotiable (price reduction, payment rescheduling, etc.), you need to have good negotiation skills to protect your interest. A consultant broker should know in detail the history of the property and the ownership, and make an objective judgment to reach an agreement in favor of his client. Involving a professional in the negotiations can
    help you achieve your desired results and protect your interests.
  4. Preliminary Purchase and Sale Agreement
    Once all the terms have been agreed, a preliminary contract between the buyer and the seller follows, setting out the rights and obligations of the
    countries. The Buyer shall pay to the Seller a deposit which is normally 10% of the sale price of the property. The Seller undertakes to transfer the property and the Buyer to
    pay the remainder of the sale price within the time and in the manner specified in the preliminary contract. Carefully review the preliminary contract, it is an important document for you. You need all the agreed terms between the parties, penalties for non-performance, time limits, and additional documents that the parties undertake to
    be procured before the conclusion of the surrounding contract, be precisely recorded in the preliminary contract. The payment of the costs of the transfer of the property shall be agreed in the preliminary contract.
  5. Final Contract - Deed.
    Bulgarian law presupposes that the final contract of sale and purchase be concluded in the form of a notarial deed before a notary public. Usually in the deed the seller
    declares that he has received the entire sale price, except in cases where the transaction is with a mortgage or other method of rescheduling payment. Ownership is transferred in
    the moment of signing the deed by the persons (owner and buyer) and the notary.
    Bulgarian legislation requires that payment of the sale price must be made by bank transfer, unless the sale price is less than 10
    000lv. The payment of the expenses shall be made on the day of the transaction as follows:
  • Local tax - set by local authorities and ranges from 0.1 to 3% of the sale price;
  • Notary fee - determined in accordance with the Tariff for Notary Fees to the Notaries and Notarial Activity Act
  • Registration fee in the Registry Agency - 0.1% of the sale price.
    The notary is obliged to register the deed with the Registry Agency on the day of its signing. Only then does the deed become public and has weight in relation to
    to third parties.

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