Purchase of real estate on the zero construction cycle
Buying a home at the initial stage of construction or even on a zero cycle is very attractive in terms of price, as well as payment terms. The ability to pay not the whole amount at once, but to break up the calculations for several months or even years, allows you to buy housing even if at the moment there is no necessary amount on hand. However, the question arises as to how to protect yourself against possible risks to the maximum. Even in Russia, the purchase of housing at the initial stage of construction is a rather risky undertaking, which is already talking about Thailand. Another country, other laws, other rules of the game. Most of the documents that a builder can show to a potential buyer, rather, resemble an exotic ornament, and even the numbers in them are written in Thai, which makes it impossible to understand in the document an equal account for anything. For help in verifying documents and drafting an agreement that will protect your rights, you should contact a lawyer. The more so that the theory and practice in assessing the reliability of the builder are slightly different.
But first, let's talk about what constellation companies should give to potential customers in theory.
The first and perhaps the most important is the documents on the ground. The developer must be the owner of the land on which the construction of the condominium is planned. The land should not be pledged or rented.
License for building. This license allows the company to carry out construction work on the selected land.
Condominium license. This is a very important point for further registration of the purchased apartment in the property. After all, only in a house that has the status of a condominium, a foreigner can buy housing in direct ownership. In principle, the Law "On Condominiums" clearly states what is considered a condominium, so there are no surprises in this matter.
Also, the developer must submit an architectural design with a plan of the building in general and your apartment in particular.
So, the builder's documents are checked, now we pay attention to the terms of the contract.
First, the contract clearly should specify the timing of completion of construction and delivery of the project, as well as penalties for violation of these terms by the developer. It is necessary to provide for the right of the client to terminate the contract and receive back the money paid if the construction is delayed for an indefinite period. If this is not done, you can wait for years to complete the work.
An important condition is the calculation schedule. From cooperation with a company that requires a one hundred percent advance payment, it is better to immediately refuse. The standard option is an initial payment of up to 30% of the value of the object, then subsequent payments that can be tied to both abstract dates and specific events on the construction site, for example, laying a foundation, erecting a certain number of floors. However, the schedule of payments should be drawn up in such a way that you have a financial leverage impact on the developer, that is, at the time of the project you must have a final payment, which you will do if the developer corrects the identified shortcomings. Typically, the latest calculations occur at the time of transfer of ownership of the apartment.
As already mentioned, the plan for the condominium and your apartment is contained in an architectural project that can change during the construction process. A detailed description of what you should receive as a result, that is, the area of the apartment, the decoration, the availability of furniture, should be spelled out in the contract. We recommend that you save all promotional brochures, announcements, correspondence with the developer, as these materials can become a weighty argument in your favor if the finished project does not meet promises.
So this should all happen in theory. In practice, everything is somewhat more complicated. Or easier. Looking at which side to look at. If the developer is not known in the market, then in this case, the absence of certain documents will be a significant risk. In the case if the developer is known, the lack of a complete set of documents, rather, will indicate that you have a chance to buy a property at a good price. After all, obtaining all the necessary documents for building a solid developer will mean the immediate commencement of construction and, correspondingly, the rise in prices.
In any case, it is worthwhile to think through all the steps until the signing of the contract, so that unpleasant nuances do not come up when it is too late to reverse the course. That is why it is desirable to seek help from independent experts, of which, no doubt, are legal companies. After all, they have no interest in selling projects to you, and their opinion will be as unbiased as possible.