Mortgage and installment plan - lifesaving straws that investors without extra money bags grab onto. Developers often offer advantageous credit programs themselves. But what if you really like an apartment on the secondary market and need to buy it as soon as possible? If your credit history allows, you can use a bank as an intermediary in this process, so that all three parties of the agreement are satisfied. It may sound unclear, we know, but that's the intrigue to keep you interested.
Features of the procedure
When contacting a real estate agency or browsing available options independently on Lun and on other websites, you only roughly determine your budget. Of course, you will not double it anyway, but the final amount may still be slightly higher or lower. Only when you find that one pearl of Kyiv architecture that conquers your heart, will you know the budget down to the last penny. And only after that can you demand, or rather ask the bank for a loan. It did not become clearer, so let's start over and understand the specific steps needed to buy an apartment with the involvement of credit funds.
1️⃣ Choose a property and carefully check it to avoid unpleasant surprises, it is necessary to inspect every corner of the apartment for damage and defects, as well as delve into the documentation. Checking the ownership rights of the current owner, absence of debts for utilities, and arrests takes some time, but such expenditures of this resource are fully justified.
2️⃣ Discuss with the owner the possibility of buying the property in installments. It will take some time to get a loan, so the idea is that when signing the contract, you will only give the seller the first installment, and he will receive the remaining amount immediately after the bank transfers it to you.
3️⃣ Sign a credit agreement with the bank. It is concluded in a standard form, so there will definitely be nothing complex or scary.
4️⃣ We move on to the stage of signing the sales contract. This joyous event takes place in the presence of a notary. It is important that the specialist indicates in the document that the purchase is being made with a partial payment and that the remaining amount will be transferred to the seller immediately after receiving the loan, on the same day. When signing the contract, you only hand over the down payment, the amount of which is agreed upon in advance.
5️⃣ It is necessary to register the ownership rights to the acquired real estate. To save time, you can contact the same familiar notary.
6️⃣ The mortgage agreement with the bank is signed and notarized, according to which your newly acquired property is provided as collateral for the mortgage loan.
7️⃣ State registration of encumbrances on real estate rights is taking place. We will explain what it is and why it is done a little later, so please be patient.
8️⃣ After all the previous manipulations, the bank has all the reasons to grant you a loan. Which is exactly what it does.
9️⃣ You remember point number two of our instructions and on the same day you transfer the money to the seller to finalize your cooperation on a positive note.
1️⃣0️⃣ Put aside the bottle of festive champagne because there is still one more step. After receiving the funds, the seller is obliged to provide a document confirming that the payment has been made between you. Now you can go ahead and pour the glasses and enjoy the bubbly drink.
It is worth mentioning that not all owners agree to such cooperation and waiting for money. If you still managed to find a more accommodating person, carefully monitor the compliance with all stages and deadlines. A happy outcome is your responsibility.
State registration of encumbrances on real estate property
As promised, we will now tell you more about this unclear process.
- What are encumbrances on real property rights? This is a legal restriction imposed by a creditor on the property of the borrower that is purchased with borrowed funds.
- Why is a lien placed on real estate? This way the bank receives a guarantee that even in case of non-payment of the loan, the money will be returned to them, albeit in a more stable currency.
- What does encumbrance of property rights include? Without prior agreement with the creditor, the owner will not be able to resell, give away, or reissue the real estate.
- How does the procedure itself work? You don't have to do anything, because the bank or any other creditor independently submits an application and presents documents, based on which it requests to encumber the real estate property.
- How long does the encumbrance last? It is not difficult to guess that after repaying the loan, the encumbrance can be removed, since nothing else will bind you to the bank. To do this, the creditor must submit a corresponding application, after which the state registrar will make the necessary changes to the register.
You can independently verify that the encumbrances have been removed. To do this, you need to obtain a certificate from the State Register of Property Rights to Real Estate. On the portal "Diya" the whole procedure takes no more than 10 minutes.