22.08.2022
In order to ensure quality and reliable real estate transactions, the Department of Cadastre and Land Management has prepared for the information of citizens the following key points that a person needs to pay attention to before proceeding with the purchase of real estate.
Three (3) ways to buy property:
Purchase of real estate with direct transfer of ownership.
Purchase of real estate with a deed of sale (POE).
Buying a property from an existing buyer (not the owner) by transferring a contract of sale.
The right choice of real estate
Buying a property is a process that requires careful attention on the part of the buyer in order to avoid unpleasant situations. In the process of choosing a suitable property, it is desirable for the interested buyer to know all the rights and restrictions associated with the property. The more data a potential buyer has, the better decision he can make.
He demanded a document confirming the ownership of the property.
The presence of a document on the right of ownership ensures its registration in the Registration Register of the Department of Cadastre and Surveying (TCX). For complete information, a recent title deed must be requested from the seller, which contains important information about the type and current condition of the property.
In the absence of a title deed, the interested buyer should investigate further and possibly seek the advice of a real estate expert.
Legal control over property – encumbrances and prohibitions
Ask the seller to provide you with a certificate of inspection of the property. Find yourself on the Internet platform “Real Estate Portal” all the characteristics of the property you are interested in. The characteristics of all properties are freely available, and the real estate portal has a corresponding video explaining how to search for them.
Find out if there is a value added tax (VAT). Ask the seller to tell you if VAT should be paid and at what rate. The seller must find out in advance, in agreement with the Tax Department, whether the sale is subject to VAT. Find out about the amount of the transfer fee that you, as a buyer, will pay to TKX when the property is transferred to your name.
It is clarified that a new unit under construction (apartment, maisonette, shop) or a land plot cannot be registered in the register of the tax office and cannot have title documents. For registration in the register, a certificate of completion of the project from the supervising engineer and a certificate from the competent building authority must be issued. If construction/development of a facility or site is completed but no title deeds have been issued, find out why.
Any decision to buy real estate should be made with the most secure criteria, so as not to make a mistake with the choice.
It is important that once you have completed your research and once the final decision to purchase the property has been made and there are no financial or other issues left unresolved, you proceed with the transfer of ownership in your name immediately.
If you have decided to buy a property but there are financial or other unresolved issues, it is recommended that you proceed with negotiating and signing a Deed of Sale (POE) with the seller, which you deposit with the tax office, as indicated on a separate information form.
In the event that you choose to purchase property from an existing buyer who has signed a POE through an Assignment Agreement, find out how the assignee of the Assignment Agreement is, whether the POE has been filed with the tax register and whether there are any financial or other outstanding debts to the seller, and previous or later WTO encumbrances.
It is recommended that you do not pay the entire purchase price of the property before the title has been transferred to your name.
