Risks in shared construction, of course, there are, but this does not mean that you should neglect this opportunity to purchase your own square meters. In addition, due to the fact that today the country has such a difficult situation, it will be a good way to save your savings. After all, real estate is one of the safest and most profitable types of investment. Moreover, shared construction has not only disadvantages, but also a very attractive advantage!
Shared construction is…
The fact that today many Russians decide to purchase real estate through a shared construction program is not at all surprising. After all, the economic situation in the country leaves much to be desired, and the risk of default is getting closer. In simple terms, shared construction is a type of construction in which the developer, in order to implement his project, attracts funds from individuals who subsequently become full ownersown apartments in this house. It is worth noting that it is with these funds that construction work is being carried out. The benefit of this is clear enough. The developer does not use the loan to implement the project, and the share construction participant acquires his legal square meters at a fairly low cost and has the opportunity to pay the cost until the end of the construction. Unfortunately, cases of fraud are very common in our country, so many do not risk contacting such programs. But for those citizens who do not have large sums for the purchase of housing, this method is the most profitable. In principle, it can be quite safe if the participant in shared construction observes some precautions. For example: check the availability of the necessary documentation from the developer, building permit, license and more.
How to buy an apartment in an apartment building
In the context of constantly rising real estate prices in our country, shared construction is a very profitable way to purchase housing. Indeed, after the project is fully implemented, the apartments in it increase significantly in price. In order to purchase real estate using such an investment instrument, it is necessary to conclude a special agreement between the developer and the client. As mentioned above, before starting cooperation with a particular developer, it is necessary to check all the necessary documents that confirm the legality of his work. Don't forget aboutthat large sums of money are involved and that the risk involved in their transfer is very high. It is worth paying attention to how many houses this developer has already built, as well as any problems during the implementation of previous projects.
Many companies often use a new legal entity to build a new home. It is very important to check who exactly are its founders. And do not forget that real estate should be liked. Participants in shared construction are often disappointed after they settle on the acquired square meters. Most often this is due precisely to the fact that the owners did not pay due attention to such trifles as infrastructure. It is important to pay attention to its presence nearby: a kindergarten, a shop, a bank branch, a clinic, a parking lot and more.
Documents required to conclude a contract
Due to the fact that often there is not enough money to buy an apartment, many people choose to purchase square meters using such an investment tool as shared construction. The documents provided by the selected developer must be carefully checked. This list must necessarily include: a building permit, project documentation, a lease agreement or ownership of a land plot, state registration and constituent papers. There are a lot of "pitfalls" when drawing up a contract. First of all, the equity participation agreement (DDU) must contain the exact postal address. If it is not defined, thenit is necessary to check the availability of a temporarily assigned address, and in the future to check the additional annex to the contract with signatures and seals.
The complexity of DDU lies in the fact that there is no single correct sample, since the objects and conditions of construction are often different. But the main points are usually the same everywhere. The obligatory points of such a document should be: a detailed description of the object being acquired, the deadlines for execution and responsibility for their failure to comply, the rights and obligations of the parties, a list of force majeure, as well as the conditions and procedure for early termination, etc. The list of necessary items is quite long. Often, the DDU contains several pages. Before signing an important document, you must re-read all the conditions. The best thing to do is to seek the help of a lawyer. In this case, the risks will be minimal.
Peculiarities of mortgage registration
Just a few years ago, equity mortgages were not possible. But today, almost every bank offers such a service. The procedure for obtaining a mortgage loan for shared construction differs significantly from the execution of the same agreement for finished housing. First of all, it is necessary to conclude an agreement with the developer. All the subtleties of this operation were mentioned above. But still, it is necessary to pay attention to information about the object, the cost of real estate, the term and procedure for payment, guarantees for the construction object, the plan and area of the premises, the termtransfer of real estate. Without fail, the bank will require notarized documents on the consent of the spouse (if any) and guardianship authorities (when conducting a transaction involving the property of minors). The contract goes through a mandatory procedure in the state registration authorities. This usually takes no more than a month for one participant. After the document is completely ready, you need to contact the bank with it. Further paperwork may vary significantly, depending on the chosen credit institution. Interest rate, package of documents, collateral requirements, etc. - all this can vary significantly. The only thing absolutely every bank requires is comprehensive mortgage insurance.
Assignment of claim
Quite often there is a need to resell housing under construction. This procedure is called "assignment of shared construction" or "assignment of the right to claim." This scheme can be implemented even before the constructed building enters the operation mode and title documents for housing are received. The owner, who has entered into an agreement with the developer, can at any time resell his right to receive real estate to another individual after the construction is completed. It is important to note that any such transaction will be taxed without fail. Its payment by law is assigned to the first investor. Although during the bidding process, this obligation can be shifted onto the shoulders of a new equity holder. But at the same time it is worthkeep in mind that the amount of tax is calculated on the entire amount of the transaction, and not on the difference between the amount of investment and the size of the concession. The acquisition of real estate under assignment agreements is always relevant, as it is incredibly profitable for most investors.
Equi-share or joint ownership?
Most often, young families decide to purchase new real estate. For this reason, the object of shared construction is not only chosen jointly with the spouse, a decision is also made jointly on what type of contract will need to be concluded. The concept of joint ownership means that during a divorce, the property will be divided equally, that is, in equal shares between its owners. This is due to the fact that certain conditions are not spelled out in the contract. Instead of a spouse, a relative or any outsider who will be included in this agreement can act. If, however, an equal share agreement is also concluded, then, according to its rules, each owner of a certain part of the property can dispose of it at his own discretion. The only restriction is that the first right to purchase belongs to the second shareholder. And, for example, during a divorce, real estate will no longer be divided, as it has been divided between the owners in advance.
Payment
As for the payment for this service, there are a lot of options. The cost of housing as a whole, as well as the conditions under which payments will be made, will depend on how much the down payment will be. For example, when depositing the full amount within three business days, the clientreceives a discount from the developer from each square meter of real estate. Otherwise, the calculation of the contract is carried out within the agreed timeframe, and the cost, prescribed initially, cannot be changed, even under the pressure of inflation or simply during the construction process. The advantages of paying the cost of an apartment in installments is that even with a small amount, the participant can solve his "housing problem". At the same time, housing can be selected with all the wishes of the client, starting with the number of square meters and ending with the characteristics and timing of its receipt in the property. In addition, with small monthly payments, the shareholder can successfully control his budget.
Pros and cons of equity participation
The main advantage of acquiring real estate through equity is the low cost. Buying a home under construction, you can save a lot. For the current situation in the country, this is a significant plus. In addition, the transaction can be concluded directly in the national currency. Speaking about the cons, first of all I would like to say that when drawing up a share agreement, the client does not buy an apartment, but only the right to demand this living space from the developer. Unfortunately, the market is designed in such a way that the probability of getting your property on time is extremely low. And the number of scammers is quite large. Therefore, it is necessary to be very careful about the choice of the developer and the execution of documents. Well, if there are questions that are difficult to answer on your own, then it is bestseek help from an experienced professional. Shared construction of apartment buildings will always be popular in the real estate market.
