Real estate assessments
When buying a real estate, it is necessary to establish its preliminary price. This can be done by consulting a specialist.
Getting a credit
When planning to purchase a real estate by taking a bank loan, it is necessary to submit an application for the credit to the bank.
After finding the likable real estate object and deciding to buy it, the preliminary purchase agreement with the owner is signed.
The essential clauses of the agreement
- the real estate is described specifically;
- the parties (the seller and the buyer) are indicated;
- the commitment to sign the main real estate purchase agreement in the future;
- the term for the main agreement to be signed;
- the term during which the main agreement has to be signed (sealed by the notary);
- the responsibility of one of the parties to organize the signing of the main contract is indicated;
- the price of the real estate;
- the obligation to pay other costs (notary, Centre of Register, etc.);
- the obligations that the seller must fulfil before the main contract;
- payment terms and conditions;
- the term of the final payment;
- the term of the real estate disposal;
- additional conditions under the agreement (for example: penalties for failure to comply with the contract).It should be noted that the pre-purchase real estate agreement must be in writting. The absence of the written form of the agreement makes the agreement invalid.
The agreement sealed by the notary
After signing the pre-purchase agreement, it should be appealed to the notary and signed the purchase agreement sealed by the notary.
Delivery of the ownership certificate from the Centre of Register to the bank
If the real estate is purchased with the bank loan, the Centre of Registers certificate must be delivered to the bank. After submitting it, the credit agreement is signed.
Mortgage registration and property insurance
Mortgage – it is a real estate pledge as security for a loan without giving up the object to the creditor. It should be noted that the subsequent real estate pledge is possible, if the mortgage agreement does not indicate otherwise. Only insured property can be pledged, except the land. It is important to note that the pledge goes along with the object, which means in change of the owner, the mortgage remains. Therefore, in buying a real estate it is necessary to ensure that no restrictions are applied to the object.
The sheet of agreed mortgage is usually filled and sealed by the notary. The mortgage sheet is signed by the debtor, creditor and the owner of the pledged object. The mortgage is registered in the Mortgage register by the decision of the mortgage judge, after delivering the mortgage sheet to the mortgage institution, where the pledged object is located.
Mortgage sheet usually includes the following clauses
- the mortgage signing place and the date;
- the debtor;
- the creditor and the owner of the pledged object;
- their residence;
- pledged object, its price and location;
- the obligation secured by the mortgage (for example: a credit agreement), its specific or maximum value and the completion date;
- the obligation is determined by including the interest.
The mortgage becomes valid from the moment of it’s registering in the Mortgage register, after the relevant entries has been filled in the public register.
The mortgage ends after it is signed out from the Mortgage register.
The reasons for the object owner to ask for signing out the mortgage are following
- the obligation of the debtor is fulfilled;
- the mortgage for the object is cancelled;
- the location of the mortgage creditor is unknown for more than 10 years after the end of the debt payment term.