Installment apartment: terms of sale, purchase from the developer

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Having decided to buy a property, determine the key points for solving this problem. Often, financial factors affect the choice of real estate option. If you don’t have enough money to buy the property you like, there are two options. When buying a home from a developer / in the secondary market, you can consider options for bank mortgages or buying an apartment in installments. In some cases, buying or selling real estate on the second path is preferable..

What is installment payment when buying an apartment

The word “mortgage” means the transfer of mortgaged property purchased by the buyer. The operation involves the bank. He gives the buyer a mortgage. If you exclude a credit institution from this scheme, you get an installment plan. This is a more profitable, interest-free option to purchase housing and only the buyer and seller participate in it. All relations between them are governed by the terms of one document – the contract of sale. In Moscow and St. Petersburg, new buildings are offered in installments from the builder.

Installment benefit

To issue a mortgage loan, the bank will require from the borrower from 12 to 20 various documents confirming solvency, plus the availability of guarantors. Mortgage loan can be taken at a loan interest and for a period of more than 10 years. Overpayment and the final cost per square meter of housing for you may be several times higher than the starting price. The main differences and advantages of this method of buying a home are:

  • fixing the cost of the apartment;
  • there are no different references;
  • no large interest on the balance of the debt;
  • the buyer has the right to prescribe in the contract any currency – ruble or dollar.

At an individual

The legislation gives permits the purchase / sale of real estate by installments between individuals. This requires a serious deal security. The duration of the operation should not exceed 3-5 months. In case of unforeseen circumstances, the apartment is returned to the seller, and the seller is obliged to return the money already paid to the buyer. Both parties agree to the encumbrance of the apartment in Rosreestr, which can be removed only after full payment. Important is the lack of costs for mandatory, in the case of a mortgage, insurance.

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Housing by installments from the developer

The difference between the housing purchase scheme of the developer is simple. Contractual relations are built with a legal entity. Check the developer for the history of the company, leased objects. Find out if he sold installments. There are such types of transactions: Sale and Purchase Agreement, Share Agreement. There is an opportunity to buy an apartment in installments without a down payment. You can require the developer to fulfill all the conditions of the contract. The main requirement for the buyer is to comply with the terms and volumes of monthly payments.

Installment sale of apartments

Any seller is interested in receiving money for his property as soon as possible and to the maximum. However, there is not always a buyer with the full amount to purchase your property. Buyers are interested in installments for the purchase of an apartment. For its part, the seller can even use partially received funds for a down payment for the purchase of other real estate. For the seller, such a sale in the presence of a real buyer means a faster completion of the sale and receipt of a down payment.

Installment Terms

When concluding a contract for a period of up to 6 months, additional interest is not charged. If the terms are more than six months, the document indicates either a monthly percentage or an annual percentage on the balance of the payment amount. When buying in the secondary market, the main condition is a burden on real estate. You can use the object of purchase, but you can not sell, mortgage or exchange it. When buying an apartment in a new building (with the developer), the conditions for transferring it are agreed only upon completion of the full payment of its value.

How much is the installment plan

Unlike mortgages, installment plan for an apartment is given for shorter periods. The usual period is from 6 months to 3 years. It is possible to indicate any payment term in the contracts for the sale of an apartment. The contract shall indicate the amount of the down payment and a schedule of subsequent payments convenient for the seller and the buyer. When an apartment is purchased in installments from the builder, as a rule, the period until the planned commissioning of the facility is indicated. MZHRK can give special conditions when buying a house according to this scheme, which leads to less problems for the buyer.


How to buy an installment plan

To buy an apartment in a new building or in the secondary market, it is advisable to resort to the services of trusted professional realtors. It is necessary to identify key ways to solve problems, to calculate the ratio of your costs and income from the transaction in the package. It is important to assess the situation in the real estate market of the region, the current financial situation. For the notarial conclusion of a contract of sale, the buyer only needs a passport. The seller must provide his passport, as well as all documents confirming the ownership of the object of sale.

Contract of sale of an apartment

The main document relating to the seller and the buyer will be the contract of sale for you. When buying from an individual, a statement of transfer of ownership is drawn up. It fixes the encumbrance on the apartment, which is valid until the complete settlement between the parties. If you buy an apartment by installments in a new building from the developer, provided that the construction is completed and the house is put into operation, a contract of sale is concluded. Construction Share Agreement (DDU) is concluded if the house has not yet been built.

Construction share agreement

Installment when buying an apartment from the builder is possible through equity participation in the construction. At the conclusion of the DDU, the developer is obliged to provide the buyer with all constituent documents, financial statements for the last three years, audit results, construction address, building permits and all technical documentation for your apartment. In the DDU should be reflected:

  • terms of commissioning the facility;
  • term of transfer of the apartment to you
  • its value;
  • down payment amount;
  • terms and amounts of subsequent payments.

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When does ownership of an apartment arise

Ownership of the owner arises after the full payment of its value specified in the contract and additional interest. It is recommended to issue the first payment and all subsequent payments notarized. This will protect both the seller and the buyer in case of unforeseen situations. If the object is put into operation, the developer does not have the right to conclude a DDU, but must transfer to the Main contract of sale. The developer transfers the apartment to you after the building is put into operation and you pay its full price.

Late payment sanctions

The contract of sale of real estate of this type must indicate the exact dates and amounts of payments. Delay sanctions must be clearly stated. In case of loss by the buyer of the possibility of payment, the contract should provide for possible options:

  • termination agreement with an obligation to the developer to at least partially return the amounts paid to the buyer;
  • renegotiation of the contract of sale with another buyer;
  • the right to transfer to a mortgage agreement with a bank in the amount of the apartment’s value minus cash paid.
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