How to Buy a House or Apartment
Buying property is becoming an important operation. How to buy a house or apartment with precautions: before, during and after the purchase. What formalities do I have to complete? For what good? With what type of mortgage? Here’s how to buy a house or apartment and the important things to consider:
1. Before buying
Choice of apartment or house
- Determine according to your needs, buy a house or apartment. The location of the property is the first question to have close to: school, work, city center, public transportation, etc.
- Before starting a purchase, it is important to know the loan capacity of your money, if you want to buy on credit.
- Inquire about the area of the property as measured by the seller. This should arise from a sales promise if the accommodation is old (used) or from the reservation contract if the accommodation is new.
- What needs to be fixed and how much does it cost. If necessary call the architect to evaluate it. Ask a professional for an estimate of the cost of the job, if applicable.
- Ask the owner to provide a real estate diagnosis (is it free of termites, cables and electricity according to the National Standard, etc.).
- Find out about the condition of the common areas by asking the owner to consult the building maintenance records (for apartment purchases).
- For the purchase of an apartment; find out about the description of the lot, the amount of the co-ownership fee and the payout for the work selected or likely to be selected. I asked the owner for the minutes of the last general meeting of the co-owners (if any) and a consultation on the rules of co-ownership in the condo.
- Obtain information from the city planning department/town hall to find out about upcoming district developments and general conveniences or urban planning constraints that are weighing on housing.
- Find out all costs to be paid such as: shared facilities, security, parking, etc. if any.
- Find out about the amount of local taxes that can be estimated (housing tax, property tax).
- Negotiate the price wisely.
Financing purchases with a mortgage or bank credit
- Find the best financing for your property purchase.
- Counting to see if I can finance it with a mortgage or mortgage.
- Compare about different bank loans.
- Sign the loan offer.
- Make sure you can pay for it. Tips, never exceed 30% of your salary or income.
- If the loaned amount isn’t enough, consider getting easy cash loans from other lending insitutions.
- I can cancel my purchase (free) if I don’t get a loan. But this depends on the seller.
- If the sale does not occur, I can cancel the loan and return all the amount paid to me.
Inform myself of the steps required for a home purchase (and purchase of land if necessary). If I reach an agreement on a sale with a seller, I may be asked to sign:
Deposit contract (or initial contract) for dwellings to be built,
Or a sale promise for an existing home.
2. During the purchase
Sign the final sales contract
I signed the final sales contract, in front of a notary for:
- Housing has been built.
- Housing to be built.
Make sure the previous owner has paid all taxes, electricity and all related costs.
Important tip: use a Notary you know. If the home seller insists on using his notary; You can also continue to use your Notary, even if there will be an overpayment. Because the price and nature of buying a property are so important, make sure you get the best possible protection for your rights and obligations.
Inquire about home or apartment insurance.
If the accommodation is part of the condo, I find out about the damages covered by the condo insurance.
3. As soon as possible after purchase
- Preparing to move to my house.
- If in an apartment, find out about how co-ownership works. If in a housing, find out too, what are the facilities.
Sources: PinterPandai, The New York Times, Investopedia
Photo credit: Petr Novak petr209 via Wikimedia Commons (CC0 1.0)