How to protect yourself when buying an apartment on the secondary market - how to secure the purchase and sale of an apartment

How to protect yourself when buying an apartment? This question worries all buyers, as there are many scammers today. In addition, compliance with the rules of the law is a prerequisite for the legality of the transaction. For this reason, buyers try to be aware of all legal and non-legal aspects of the property they are purchasing in order to buy an apartment without risk.

Main risks when buying an apartment

If we collect all the main risks into separate groups based on common characteristics, we can distinguish the following:

1. Risks associated with fraudulent activities. In most cases, behind the mask of a seller, intermediary, and most often a realtor, there is a fraudster who will simply disappear after receiving money from the buyer. The favorite tool of fraudsters is forged documents. Most often, such tricks fall on gullible people who do not consider it necessary to check the purity of the transaction.
2. Risks associated with compliance with the law. The law establishes fairly clear requirements for the execution of a real estate purchase and sale transaction. Failure to comply with the main ones may result in the invalidity of the transaction. In addition, if certain documents are missing in other cases, there is a possibility of being refused when registering the transaction.

Speaking about specific reasons that may lead to adverse consequences for the buyer, the following should be noted:

1. False power of attorney from a representative. If the powers of the representative are not established in a notarial manner, then the transaction will be considered completed by an unauthorized person, and, accordingly, illegal.
2. Illegally carried out privatization. The grounds for the acquisition of real estate by the seller, including compliance with the procedure for the privatization of a public apartment, are a prerequisite for the legality of the transaction. In fact, if privatization was carried out illegally, then the seller does not have the right to sell it.
3. Lack of consent of one or more authorized sellers. If the apartment is in joint or shared ownership, then the consent of all owners is required. If at least one does not agree, he will subsequently be able to challenge the deal.
4. Presence of unaccounted heirs. When the seller received the property by inheritance, it is necessary that there are no other applicants for it on the same grounds. If such applicants emerge in the future, they will be able to challenge the legitimacy of the transaction.
5. Having unpaid debts. If taxes and utility payments have not been paid for the apartment, and it is pledged, then third parties have the right to it and may demand repayment of the debt on account of the sale of the property. Of course, this can only be done by court decision, but the likelihood of such an outcome is high.

In practice, there may be other reasons that present the apartment in an undesirable form for purchase. But these circumstances occur most often, and disputes regarding them are almost never resolved in favor of the buyer.

Although such real estate is considered the cleanest in terms of its legal status, there may be certain problems associated with:

• with the existence of rights of shareholders who have not yet declared them;
• in the absence of permission from the authorized body to admit the apartment building to operation;
• with the bankruptcy of the organization that built the apartment building.

It is worth keeping in mind that a new building is the result of a large amount of borrowed funds. So, in fact, it cannot belong to the owner completely without encumbrances from third parties. It is necessary to carefully study the state of affairs of the organization that owns the new building, especially when purchasing an apartment from a contractor.

In the event of bankruptcy of the developer, foreclosure may be directed specifically at the house that will be put up for sale.    

Procedure for concluding a transaction

From the buyer’s perspective, the entire process of buying an apartment is represented by the following actions:

1. Search for an apartment. To do this, you need to contact exclusively reliable real estate agencies that have proven themselves in the real estate market. Small offices and individuals often turn out to be scammers.
2. Inspection of the apartment. At this stage, it is necessary to pay attention to many factors in addition to the technical condition of the apartment itself. You need to inspect the condition of the house as a whole, the order in the entrance, talk to the neighbors.
3. Verification of documents. During the inspection, you need to ask the seller for technical documentation for the apartment and compare the compliance of the actual plan with the documented one. You must also request from the seller an extract from the cadastre with the history of the apartment.
4. Verification of the seller's eligibility. Very often the transfer of rights to an apartment is not formalized correctly, so it may well turn out that the seller is not the legitimate owner. Even the sellers themselves do not always know about this. This information can be obtained from the cadastre or Rosreestr.
5. Negotiation. It is necessary to conduct preliminary negotiations with the seller and discuss the terms of the transaction. At this stage, the size and procedure for making an advance payment and the timing of the actual transfer of the apartment are established.
6. Make a deal. The transaction is drawn up in writing, preferably with certification by a notary. The law allows the parties to a transaction to independently determine its terms. But it’s still better to have a notary or lawyer involved in the drafting process.
7. Registration. After concluding a transaction, it must be registered with Rosreestr. Only after this the buyer becomes the legal owner.

The transaction can be concluded on any terms by agreement of the parties.

But the main terms of any agreement regarding the sale of material assets are:

• information about the parties;
• information about the subject of the contract;
• price;
• rights and obligations of the parties;
• procedure and terms of execution of the contract;
• procedure for resolving disputes.

The agreement is signed by the parties themselves or by persons authorized by them to conclude the transaction. Notarization of such a transaction is of a recommendatory nature, allowing it to be secured.

List of required documentation

For a transaction to be legally binding, it is necessary to have a wide range of documents. It is desirable that they are reflected in the contract, but this is not a mandatory condition for all documents.

This list includes the following documents:

• passports of the parties - information from them is indicated in the contract without fail;
• title document – ​​confirms the seller’s ownership;
• power of attorney – when carrying out a transaction through a representative;
• an extract from the housing organization - certifies the persons living in the apartment being sold;
• an extract from the Unified State Register of Rights (Unified State Register of Rights) - reflects the history of the apartment: how many owners there were, when it was registered, and so on;
• an extract from the EIRC (unified information and settlement center) - confirms the absence of utility debts;
• technical documentation - issued by the BTI and completed every 5 years.

You can also request an extract from the mortgage register to make sure that the apartment is not the subject of any dubious transaction. If the sale of such an apartment by creditors is allowed, but the buyer still decides to purchase, then he should either take a guarantee to the creditors, or notify the creditor so that he removes the encumbrance.

The completeness of this list and the reliability of the information presented in it is a guarantee of the legality of the transaction.

If the documents show signs of forgery, then it is better to refuse to purchase this apartment only if the owner does not explain this and an extract from the Unified State Register confirms its legitimacy.

If the seller refuses to provide these documents for examination at all, then he is most likely a fraudster. You should not contact such persons, much less enter into transactions with them.

Safety precautions when buying an apartment

How to safely buy an apartment in a new building? To understand what to do when buying an apartment, you need to understand what risks the buyer bears.

The buyer's main risks are as follows:

1. The buyer may lose money and not get the apartment if the seller turns out to be a fraud.
2. The buyer may be forced to engage in lengthy legal disputes with third parties if the sale was carried out by a person who is not the legitimate owner.
3. The registration authority may refuse to register the buyer's property rights.

In order to know how to protect yourself when buying an apartment, you need to act based on your risks.

Basic safety rules are as follows:

1. When transferring the advance and the main part of the money, you need to obtain a receipt from the seller. A more desirable method is to transfer money through a safe deposit box. But it is best to refuse to advance the transaction and make payment after the actual transfer of real estate.
2. The legitimacy of the owner is verified by an extract from the Unified State Register. If, in addition to the seller, other persons are indicated as current owners, it is necessary for the seller to present the notarized consent of the other owners and their documents for the apartment. Such consent is also required when the seller is or was married.
3. Without a list of required documents or if they are falsified, the registration authority will refuse to register ownership rights. So you need to demand a full package of documents from the seller.

There are many ways in which the legitimacy of a seller's title may be questioned. So, for example, if an apartment was recently inherited, then most likely there are other applicants for it who can at any time assert their rights and challenge the legality of the transaction. Of course, it will be possible to get the money back through the court, but it will be a long and stressful process.

It is necessary to request the seller to ensure that all persons currently registered in the apartment are registered. Registration itself often gives a person the right to live in the appropriate apartment.

A person can lose his registration either on a voluntary basis or by a court decision. So that the buyer does not need to drag around the courts to discharge the remaining persons, it is better to demand this from the seller.

Basic rules for advance transaction

In most cases, sellers ask for a deposit. This is, of course, an optional legal requirement. It comes from the agreement of the parties.

But it is precisely this instrument for concluding civil transactions that serves as the main field of activity for fraudsters. For example, an unconfirmed advance can lead to loss of money.

The main recommendations of experts that will protect the buyer when making an advance are as follows:

1. It is necessary to conclude a special advance agreement, which must include conditions under which the transaction can be canceled and the advance returned to the buyer. Especially when buying a mortgaged apartment, you need to write down everything in detail, because such transactions often fall through after the advance is transferred due to the seller’s dishonesty.
2. When concluding an advance payment agreement, it is necessary to include in it the conditions for maintaining the apartment in proper condition and ensuring the safety of the property in it. To confirm the condition of the apartment, which will be satisfactory for the buyer, you need to attach photographs of the apartment, the property in it, and so on.
3. The fact of transfer of the advance payment is confirmed not by the agreement, but by a receipt drawn up by the seller. For greater confidence, you need to contact a bank that can guarantee the safety of the advance.

It must be borne in mind that the buyer or seller can change their mind about concluding a transaction at any time. So the safety of money is the main rule for the safety of advances.

It often happens that the deal falls through, and the seller has already spent the advance. He, of course, is obliged to return the money, unless otherwise stated in the advance agreement.

A secure transaction is the result of the buyer’s meticulousness.

Clear signs of danger when buying an apartment

Despite all the attempts of sellers to hide certain circumstances, there are certain signs that should alert the buyer. If there are any, you need to be meticulous and carefully study all the documents.

Such signs include the following circumstances:

• sale through a representative;
• participation in the transaction of organizations and other legal entities;
• purchase of an apartment by the seller using maternity capital;
• incapacity of the seller or one of the owners of the apartment;
• the seller is married or divorced;
• the presence of third party rights to the apartment, encumbrances, the apartment being pledged to the bank;
• redevelopment not properly completed;
• shared ownership of an apartment;
• recognition of the fact of dilapidation of housing, accidents or poor state of repair of the entire apartment building.

You need to be especially wary of cases where the owner of the apartment is an incapacitated person. In such cases, the owner cannot sell the apartment independently. An incapacitated person has no legal capacity to enter into transactions.

However, the legitimacy of the transaction is not the biggest problem in such cases. To carry out a transaction regarding the property of an incapacitated person, permission from the guardianship authorities is required. That is, the process will take place under the supervision of the state.

The state assumes the responsibility to protect the rights of incapacitated citizens. If the sale is carried out under illegal schemes, the buyer may be held liable for fraud.

Thus, when purchasing an apartment from an incapacitated person, the buyer risks not only receiving claims from third parties, which is possible when purchasing an apartment in shared ownership, but also being held accountable by the state. And this is no longer just loss of money or lengthy legal proceedings.

There is money, but you hold on: how to protect yourself in real estate transactions

Realtor Marat Gallyamov talks about how not to make a mistake when buying and selling a home has reached the finish line

Marat Gallyamov, director of the federal real estate company Etazhi-Kazan, continues to tell Realnoe Vremya readers about the trends and features of the housing market. In today's column we will talk about safe payments when buying and selling real estate.

Based on the results of a legal analysis of documents (certificate of state registration, foundation documents, extract from the Unified State Register) and additional checks (checking the object and the client using Internet resources, checking a passport at an ultramag), they all turned out to be in perfect order, and there were no doubts about the purity of the transaction at that the moment did not arise. By the way, the cost of the apartment was 6 million rubles. After submitting documents to Rosreestr to register the transfer of ownership to the buyer, it turned out that the seller had already submitted a similar package of documents with another buyer. The transaction was suspended, and the buyer was able to freely return his money only because payment for the apartment was made using a safe deposit box. Otherwise, the buyer would be left with nothing.

In fact, there are a lot of similar examples. It’s hard to imagine, but cases of death of participants in the purchase and sale of real estate during the transaction have also been recorded.

According to the state register, 8% of the total number of transactions are suspended. The reasons may be different: from submitting an incomplete set of documents to submitting fake documents.

In such cases, secure settlements are definitely a guarantee of solving the problem.

Types of secure payments

• Letter of credit (transfer of money to the seller’s account upon presentation of documents confirming the registration of the transfer of ownership).
• Bank safe deposit box (receipt of money from the bank upon presentation of documents confirming the registration of the transfer of ownership in the name of the buyer).
• Nominal bank account (transfer of money by the bank after receiving information about the registration of the transfer of ownership in the name of the buyer).

Letter of Credit

In this case, the buyer and seller enter into an agreement between themselves that they will pay for the transaction using a letter of credit, having previously agreed with a specific bank on the payment terms specified in the purchase and sale agreement.

Immediately after receiving documents confirming the registration of the transfer of ownership to the buyer, the seller provides them to the bank along with other documents required under the contract and letter of credit.

If there is no doubt about their authenticity and legality of execution, the bank pays for the documents by transferring funds to the seller’s account.

There are really many advantages to this type of secure payments.

The non-cash form of payment allows the buyer and seller to determine the terms of payment under the letter of credit in accordance with their wishes, that is, to draw up their own list of documents that will confirm the fulfillment of obligations by the seller.

This significantly reduces the risks for both parties, since compliance with the terms of the agreement is controlled by a third party—the bank.

The reliability of settlements under the transaction does not depend on the financial condition of the buyer on the date of settlement: his funds are deposited in a special bank account for subsequent transfer to the seller only if all the conditions of the letter of credit are met. Once the letter of credit is opened, the buyer does not have access to this money.

However, a letter of credit also has its drawbacks: if the deal fails, money can only be received after its expiration date. The bank is also obliged to report the transaction to the tax office, which does not suit many people.

Bank safe deposit box

The process begins with the preparation of a preliminary agreement between the seller and the buyer, indicating payment through a safe deposit box. The parties select the bank where payments will be made, while simultaneously drawing up a main agreement indicating payment through a safe deposit box.

Using a box allows the seller to withdraw money at any time after receiving his copy of the purchase and sale agreement from the Federal Registration Service. Photo bankstoday.net

A couple of days in advance, you need to go to the bank, where the main agreement for renting a bank safe is signed and funds are deposited in the safe deposit box.

After registering the transfer of ownership, the seller provides the bank with the necessary documents to receive funds from the safe deposit box (usually a purchase and sale agreement with a mark on registration of the transfer of rights, an extract from the Unified State Register) and receives his money.

Calculations using a cell are really convenient and safe. Firstly, they are produced in a bank, and such institutions always have armed guards.

It is important to note the following fundamental point: even if a credit institution encounters problems, such as bankruptcy, the contents of deposit boxes are not subject to seizure, since these funds are not on the bank’s balance sheet.

Secondly, the use of a cell allows the seller to withdraw money at any time after receiving his copy of the purchase and sale agreement from the Federal Registration Service. This means that the likelihood that some attackers will find out exactly when a person leaves the bank with several million rubles is minimal.

Thirdly, renting a locker is optimal for alternative transactions, which are still the majority on our market: in such transactions, money is often transferred along long chains.

And finally, this model allows both the seller and the buyer to keep the true amount of their income (or expenses) secret, since formally no one except the parties to the transaction knows about the contents of the cell.

However, when placing a significant amount or valuables in a metal box, few people realize what it might turn out to be. You must realize that property stored in a safe deposit box is not 100% safe.

We are talking about thefts from safe deposit boxes, reports of which, unfortunately, are becoming more and more frequent lately.

When the buyer transfers funds to a special nominal bank account, the credit institution requests information from Rosreestr about registering the transaction. Photo kazned.ru

Nominal account

Here the scheme is as follows: the buyer transfers funds to a special nominal bank account, after which the credit institution requests information from Rosreestr about registering the transaction. After registration, the money is credited to the seller’s account; completing the service takes no more than 15 minutes.

There is no need to withdraw cash from the cash register, count it, deposit it into a safe deposit box or take a receipt. The money is kept under reliable protection until the transaction is registered in Rosreestr, after which the buyer receives a notification that the transaction has taken place. Only after this the money is transferred to the seller’s account.

The seller does not need to come for the money - it is enough to provide the account details for the transfer of funds during the transaction, where the money will be sent after registering the transaction in Rosreestr.

But keep in mind that sometimes the stated deadlines are violated. Bank employees are not always able to explain serious delays. Of course, this happens extremely rarely, but this does not make it any easier for the parties to the transaction who find themselves in such trouble. Therefore, when planning the completion date of the transaction, take this circumstance into account!

Cases when safe payments will help

1. Imposition of judicial arrest during the registration of the transaction.
2. Identification of prohibitions on performing registration actions not reflected in the Unified State Register.
3. Presentation of the arrest order and enforcement proceedings during the registration period.
4. Filing an application from the seller or his spouse for bankruptcy of an individual during the registration period.

5. Critical errors in the preparation of documents that do not allow registering the transfer of ownership.
6. Death of one of the parties to the transaction or serious illness during the registration period.
7. Sale of real estate using forged documents.

8. Abuse and fraudulent actions on the part of the seller, when he received the money but refused to complete the transaction.
9. Various unforeseen situations that do not depend on the will of the parties (for example, the sale by bailiffs of an apartment at auction or refusal to register the assignment of lease of a plot, etc.).

Protecting yourself is everyone’s right, especially when it comes to large sums and transfer of ownership. Fortunately, today there are ways to do this quickly and painlessly. Depending on the nuances of the purchase and sale transaction, everyone will choose their own payment method suitable for a particular situation.

Real estate specialists help and guide in such difficult moments, and often act as a buffer between the buyer and seller during negotiations and the transaction.

Marat Ilyasovich Gallyamov is the director of the federal real estate company Etazhi-Kazan.

• Born on November 4, 1979 in Naberezhnye Chelny.
• In 1996 he graduated from Chelny school No. 34.
• In 2001 he graduated from KSTU. A.N. Tupolev (KAI).
• From 2013 to the present - director of the federal real estate company Etazhi-Kazan.
• From 2013 to the present - full member of the Guild of Realtors of the Republic of Tatarstan.

Real EstateSociety Tatarstan

How to protect yourself when buying an apartment?

Buying an apartment is a significant event for most citizens. Purchase and sale transactions on the secondary market of property and new homes are accompanied by risks of loss not only of funds, but also of the parties’ dishonesty. Lawyers and specialists in the real estate market will help you protect yourself from scammers in a timely manner and recognize fraud in the secondary sale of an apartment.

How to protect yourself when buying an apartment

Answering the question of how to protect yourself when buying an apartment in a new building, we will give important aspects of buying residential premises in new buildings. The situation with housing under construction at various stages of readiness is extremely risky.

The reputation of the developer plays an important role.

• First of all , before purchasing, you need to pay attention to previously built houses, violation of the deadlines for commissioning and commissioning of new buildings. Study in detail the project declaration, reporting, history of existence and reviews of the first buyers, the market of new buildings. Are third-party subcontractors and organizations involved in interior and exterior finishing? A big plus is accreditation by banks from the TOP-100 reliability rating for obtaining mortgages in new buildings;
• Secondly , assess the quality of new buildings and the development of infrastructure. New houses are often built without taking into account the proximity of social institutions and recreational facilities, or the availability of parking. The quality of the rough finishing of the apartment must comply with the certificates, and the standards for the construction of new buildings, the procedure for concluding a shared construction agreement, must comply with federal laws (in particular 214-FZ). The primary real estate market is regulated more strictly than the secondary one, but risks remain;
• Thirdly , it takes two to three or more years for a house to completely shrink, so expensive major repairs, as well as fine finishing of a new building, will quickly become unusable. The period of construction and installation work can drag on much longer due to new neighbors who will drill, make noise and cause inconvenience, until the house is completely occupied.

Before making a purchase, a large developer always discloses detailed information about its new buildings and completed properties, and offers advantageous offers on the market in cooperation with banks to obtain mortgages. Investing money at the pit stage is quite risky.

To protect your capital, you need to study the contract and deal only with well-known companies. The undervalued cost of an apartment in a new building can only indicate the impending long-term construction and cannot protect you from risks. When completing a transaction by proxy, be extremely vigilant.

The secondary housing market is less risky in terms of readiness.

It’s also worth knowing in advance how much the services of a realtor will cost when buying an apartment.

By proxy

When answering the question of how to protect yourself when purchasing an apartment by power of attorney, special attention should be paid to the contents of the power of attorney and check its relevance. The persons specified in the power of attorney must be in good health and capable.

Additionally, check passport data, as well as restrictions on amounts for selling an apartment. The details of the power of attorney must be clearly defined, the series and form number must be read. The power of attorney form must be certified by a notary.

By inheritance

Lawyers will help you answer the question of how to protect yourself when buying an apartment by inheritance. If the certificate of ownership indicates an inheritance, then you can dispose of the apartment no earlier than six months later. An inheritance agreement for an apartment is drawn up at a notary office and contains the necessary annexes to the inheritance will.

Passport data, as well as documents from the registry office, will indirectly help determine the degree of relationship and rights to inheritance. The inventory of inherited property cannot contain errors or omissions.

A power of attorney to dispose of an apartment by inheritance is limited in duration and substitution is not permitted, which allows the buyer to be protected.

When the apartment has been owned for less than 3 years

If the residential premises have been owned for less than 3 years, then purchasing an apartment at a reduced price is extremely unprofitable for the buyer. The seller may persuade the buyer to indicate in the contract the undervalued value of the property, while he strives to protect himself from tax payments.

But in this case, the buyer will not be able to take advantage of the property deduction in full, and the mortgage may not be approved at all. Arguments in favor of quickly registering an inheritance for the speedy sale of property should be alarming.

Do not even agree to a reduced price, as this will not secure your purchase of an apartment.

If the transaction is contested in court, you should not hope for a refund of the full cost. In order to protect yourself, experts recommend indicating the real price and issuing a receipt for receipt of money. Otherwise, all payments to the buyer will be made at a reduced cost - you need to remember and be aware of this.

Recommendations on how to protect yourself when buying a privatized apartment with a mortgage

Purchasing housing with a mortgage on the secondary market imposes additional obligations to collect documents. The bank that approved the mortgage helps secure the application process.

A thorough study of title and personal documents, both on the part of the buyer and the owners (including inheritance, stewards by proxy) excludes fraudsters from the chain. An undervalued sale price of an apartment is unacceptable, as is the forgery of certificates for an apartment.

If you previously bought an apartment with a mortgage, be sure to request a certificate from the Bank about full repayment of the loan and interest on it, removal of the encumbrance, and whether the legal requirement regarding the allocation of a share to all minor children by inheritance has been met.

Own housing is purchased with personal savings or with a mortgage, while the seller does not care at all about the nature of the origin of the capital, the main thing is to sell the property profitably and quickly by taking the money. There is a case of forgery of documents, concealment of essential facts not only about the number of owners, registered persons, but also the technical characteristics of the object.

Reference information on real estate objects can be easily obtained online on the Rosreestr website in the “Services” section. This will help quickly protect against forgery of certificates.

There will be no information about the full name of the owners, but information about the cadastral value of the property will serve as an additional bonus.

The service is available without prior registration; you must enter the address of the constituent entities of the Russian Federation or cadastral number.

If the documents are in complete order and the relationship between the primary grounds and forms of certificates of ownership can be traced, then the second stage is to identify all persons who have the right to dispose of property, as well as minor citizens and simply registered persons. When concluding a preliminary agreement for a deposit (or advance payment), it is necessary to stipulate the provision of a complete list of documents for registering a new right.

The main ones include:

• the spouse’s consent to the sale of real estate acquired in a civil marriage, a notarized form;
• a certificate from the guardianship and trusteeship authorities is submitted for children under 18 years of age;
• certificate of legal capacity from the psychoneurological dispensary at the place of registration for pensioners and registered citizens (alcohol and drug addicts).

Additionally, the agreement stipulates the conditions for deregistration of all registered persons before signing the main agreement, or after the expiration of the limited period required for the purchase.

Persons serving in the army, including under a long-term contract, as well as citizens serving sentences in prison and missing persons, can lay claim to the property, even after its sale, and legally sue the share or invalidate the transaction. Information from the Ministry of Internal Affairs, received even through unofficial communication channels, will strengthen the purity and confidence of the transaction.

Secondary market or new building - the buyer chooses and takes risks, taking the first step without the support of specialists. Violation and concealment of essential circumstances can create big problems in the future with challenging the transaction and proving your good faith. Follow the recommendations - this will help you secure your future and live peacefully in your new apartment.

What does the undervalued price mean when buying an apartment?

The best way to protect yourself when purchasing an apartment with a reduced price is to make sure that the contract is transparent or to completely refuse to purchase an apartment on the secondary market.

To protect yourself, or better yet completely eliminate any controversial situation, let’s consider and give examples of specific actions:

• fraudulent, criminal intentions of the seller;
• buyer's ignorance and negligence;
• imposition of additional services from third parties.

The significant turnover of liquidity in the real estate sector of secondary and primary housing attracts many scammers seeking to make money from illiterate buyers.

Expecting to attract buyers, heirs or direct sellers indicate a reduced cost or an affordable mortgage.

To secure the transaction and discard suspicious offers, you need to study daily, track the history of advertisements, and especially pay attention to objects that have a low selling price.

If you have questions, consult a lawyer

You can ask your question in the form below, in the online consultant window at the bottom right of the screen, or call the numbers (24 hours a day, 7 days a week):

• 8 (800) 350-83-59 — all regions of the Russian Federation.

Buying an apartment on the secondary market: what you need to know and how to protect yourself from fraud?

HomeReal EstateResidential propertyApartmentPurchase and sale of an apartmentInstructions for the purchase and sale of an apartmentNew buildings and resale

Buying an apartment is a serious step that falls into the most complex category of civil law relations. Before purchasing real estate, you should take care in advance of the “cleanliness” of the apartment, find out about all the stages and timing of transactions and settlements, and properly register the property.

After all, a large amount of money, which inevitably accompanies the purchase of an apartment, is a bait for a large number of swindlers and scammers.

How to protect yourself and what you need to ask when purchasing an apartment on a secondary market, and what are the nuances of checking the purity of the transaction before signing the contract?

Dear readers! Our articles talk about typical ways to resolve legal issues, but each case is unique.  

If you want to find out how to solve your particular problem, please contact the online consultant form on the right or call +7 (499) 938-47-82. It's fast and free!

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What do you need to know and what to pay attention to when buying an apartment on the secondary market?

When purchasing an apartment on the secondary market, you should pay special attention to certain points so as not to endanger your funds and to avoid becoming a victim of deception.

What are the risks and nuances?

All existing problems that may arise when purchasing an apartment on the secondary market can be divided into several categories:

• Legal difficulties depending on the “cleanliness” of the apartment. They are caused by the rather complex procedure for buying and selling secondary goods, as well as the low degree of legal knowledge of the buyer.
• Problems that arise due to a discrepancy between the technical characteristics of the apartment itself and the official documents for it. They will not be able to affect the rights of the owner, but they can create significant problems for living. Such issues usually entail spending significant amounts of money. An example is unauthorized redevelopment.

How to protect yourself and check the purity of the transaction?

To successfully buy an apartment without risks, you need to follow the following scheme:

1. Check the identity of the seller and his ability to sign purchase and sale transactions - his documents, power of attorney (if the owner is represented by another person), as well as ownership of the apartment. From the documents, the owner must provide a certificate of ownership and a purchase and sale agreement. Also, the owner himself must have full legal capacity.
2. Check the object of the transaction . You should carefully study the contract and make sure that when making a transaction, the apartment that the buyer chose is being sold. You should remember or write down the address and footage in advance and check them with the information in the document.
3. Check for collateral . Often, owners will try to sell a property that is in lieu of a lien without notifying the buyer. In this case, obtaining a fresh USRN extract for the apartment or an online request to Rosreestr will help.
4. Arrest check . If the owner tries to sell such property, the transaction will be invalid. You can also check through Rosreestr online or by receiving an extract.
5. Checking for third party rights . These could be minor children, co-owners, or disabled people. You can find out about them from a certificate of family composition or an extract from the house register.
6. Verification of former owners . If the owners have changed frequently over the past few years, then perhaps people were trying to disguise the illegality of the first sale. Among the owners there could be incapacitated people or minors who did not have the right to take part in the transaction. You can also find out from the house register.

When meeting with the seller, you should ask him in detail about the apartment. A conscientious property owner will be happy to answer all questions, but an attacker will begin to get nervous and get confused in the answers.

1. Who is the owner of the premises? If the seller answers that he is the owner (and confirms this with documents), then everything is in order. If the seller is an intermediary who sells the apartment by proxy, this is a reason to be wary and arrange a meeting with the owner of the apartment. If there are several owners, you should get to know everyone and make sure that no one is against the sale.
2. How was the apartment acquired (on what basis)? Has ownership been registered? If the ownership right is registered in Rosreestr, and the apartment is transferred into ownership after the purchase and sale transaction, then everything is in order. If it turns out that it was recently inherited, then it is better to refuse the purchase. Otherwise, additional heirs may appear at any time and sue the property.
3. How many people are registered in the apartment? The ideal option for purchasing is when the owner is the only person registered in the apartment. If this is not the case, before purchasing, you should meet with everyone registered and get a receipt from them that after the sale they are required to check out of the apartment. Otherwise, these people will be able to use the apartment even after the transfer of ownership.
4. Are there minors among the owners or users? If the seller answered with a firm “No,” then there is nothing to worry about. If yes, then for the sale of an apartment, one of the owners of which is a minor child, the consent of the guardianship or trusteeship authorities is required. Without this document, the transaction will be considered invalid.
5. Is the owner married (divorced)? If he answered no to both questions, then there should be no problems. If the seller is married (or was married at the time of purchasing the apartment), then the permission of the second spouse is required to sell it. Otherwise, the transaction is declared invalid.
6. Are there any encumbrances/restrictions on the rights to the apartment? Sometimes it is mortgaged against a loan, or there are legal disputes. A negative response from the seller will allow you not to worry about additional payments. But if he claims that the apartment has been seized, but he will be happy to sell it after paying a small advance (to pay off the debt), then he should refuse the purchase. Such a transaction involves a huge risk and does not guarantee that after paying the advance, the apartment will be sold.
7. How long does ownership last? If the seller claims that he has lived here all his life (or at least 3-5 years), then there is no need to worry. But the short period of ownership and frequent changes of owners over several years should raise red flags. Scammers usually use such schemes.
8. Is there a direct or alternative transaction? With a direct transaction there is nothing to worry about. An alternative sale if housing has already been found for further purchase is also a good option. If the seller plans a long-term selection of oncoming housing, then it is better to refuse cooperation with him. Such a person greatly complicates the whole process and can delay it for several months.
9. Are there hidden defects in the apartment (defects in heating, electrical, water supply, meters, plumbing and other integral components of housing). If the seller confidently answers in the negative and invites the buyer to see for himself during an external examination (or even points out some shortcomings himself), then he should be trusted. If a person avoids answering or does not allow you to fully inspect the apartment, distracts you, then you should be wary.

It is better to write down the answers to questions for later verification.

Common Buyer Mistakes

Home buyers in the secondary market often make mistakes that cost them dearly in the future. Below are the main ones:

1. Buying on emotions . A competent seller is able to create a pleasant and even enthusiastic impression of himself and his own apartment. Buyers often fall for this “bait”, believing that they bought real estate at an excellent price and in a convenient location. And after a while it turns out that they purchased an illiquid property with an inconvenient layout.
2. Verification of documents . You should never neglect issues with documents and rely on the seller’s honesty. An ordinary buyer can hardly predict all possible risks, so it is recommended to entrust the issue of documents to a realtor or lawyer.
3. Negotiations with the seller . You can’t start praising the apartment you want right away or scolding it for every shortcoming in the hope of getting a discount. If the attitude and interest are particularly enthusiastic, the seller will have no reason to make a discount. And if harsh expressions are used against the apartment, the owner may even refuse to sell and deal with unpleasant boors.
4. Cooperation with the seller's agent . For some reason, many buyers believe that the best solution for them is to discuss the transaction with the seller's realtor. Actually this is not true. Such a realtor is primarily aimed at making a profit from the property owner and will not paint the apartment’s shortcomings to a potential buyer.
5. Refusing help from a realtor. It is believed that any person can independently choose an apartment and decorate it. But, if the buyer is poorly versed in the legal aspects of such procedures, then he cannot do without the services of a competent realtor.

   A specialist will help you evaluate all the advantages of the property (location, liquidity, market price) and check the cleanliness of the documents.

Fraud and deception schemes

There are 5 most common schemes used by scammers who want to get money from selling apartments:

1. Alienation of an apartment using a false passport . The attackers rent an apartment from the owner, make a copy of his passport, where they then paste their photograph. After this, a fake passport is made, and using it, copies of documents for the apartment are obtained, with which you can sell it. The method is expensive and is rarely used for sale. When confronted with such a scammer, the buyer is left without money and an apartment, and cannot prove anything.
2. Alienation of an apartment under a contract of sale or donation from persons at social risk . Criminals deceive people into buying apartments from lonely pensioners, mentally ill people, drug addicts and alcoholics who are not aware of their actions. After this, the apartment is resold several times. In this case, the large number of housing transactions over the past few years should alert the buyer. If after the purchase it turns out that the apartment originally belonged to an incapacitated person, it will be taken away.
3. Concealment of legal heirs . After inheritance, new wills may be discovered, the fact of the testator’s incapacity, as well as previously unknown heirs by law may appear. Often, even the seller himself may not be aware of this possibility and sell the apartment without the intention of deception. In this case, will it be possible to return the full cost of the apartment when it is divided again?
4. Alienation of an apartment using a fake power of attorney . Criminals are trying to sell apartments using revoked powers of attorney, as well as those after the owner died. If you purchase real estate using such paper, you should personally meet the owner and communicate with him.
5. Transactions in violation of the rights of minors . If the apartment is sold without the knowledge of the guardianship authorities, or minor children did not receive shares in the apartment after using maternity capital, the transaction may be cancelled.

Expert advice

Real estate experts recommend that buyers follow these tips to buy property safely:

• Determine clear requirements for the apartment (price, location of the house, total area, category of the house, condition of the apartment).
• Check the documents carefully (especially for apartments with low prices).
• Bargain correctly (if the apartment has been on sale for a long time, the owner can significantly reduce the price).
• Ask a lot of questions. The more details are clarified, the better.
• Carefully inspect the premises and entrance. It is better to point out the presence of shortcomings right away in order to get a discount, rather than try to prove your rights later.
• Communicate with neighbors. The owners will not reveal all the information about the house and their identity, but the neighbors will be happy to share the data.
• Do not sign a contract without checking. All papers should be reviewed carefully.
• Maintain discretion. If the price is too low, you should look for a catch.
• Receive a certificate from the BTI, an extract from the Unified State Register.
• Make sure the house is not in a state of emergency.

Buying an apartment on the secondary market without risks is not as difficult as it seems at first glance. You just need to carefully study all the documents, inspect the chosen premises, do not act on emotions and do not neglect the services of a realtor.

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How to protect yourself when buying a home :: Opinions :: RBC Real Estate

As practice shows, the biggest fear of a modern real estate buyer today is associated not only with the risk of losing the purchased property, but also with the loss of his own financial resources, which the buyer is willing to spend on this purchase.

I must say, this fear is well founded.

Despite the fact that if a transaction is declared invalid, the Civil Code states that it does not entail legal consequences for the parties and generously returns to each of them everything previously received under the transaction, that is, to the seller - an apartment, and to the buyer - money, in reality there is often a return one-sided. The apartment is taken away from the buyer, but no one is in a hurry to return the money, mainly due to its absence. Moreover, it is not the seller himself who can file a claim to invalidate the transaction, but third parties whose rights have been violated.

So, what should a real estate buyer really be afraid of and how can he protect himself before entering into a deal?

The ex-husband is not ex-ex in everything

However, the former spouse, having provided the buyer with false information that he was not married at the time of purchase (confirming this with a notarized statement), sold the jointly acquired property and left for permanent residence in another country.

Having learned about this, the wife challenged the transaction, and the buyer found himself in an unpleasant situation, since it was not so easy to recover the money paid from the seller.

It goes without saying that a transaction made by an unauthorized person will be declared invalid. That is why the sale of an apartment by power of attorney should alert the buyer, even if the power of attorney is issued to a close relative and the seller’s absence from the transaction is explained by employment/inability to come to the transaction from another country or other “valid” reasons.

Medical cases

The sale of an apartment by an incompetent person (recognized as such based on a court decision) is also invalid from the moment it was completed. It is important to understand here that incapacity may result from a mental disorder. In such cases, they are usually insured with certificates from psychoneurological and narcological dispensaries.

However, there is another category of citizens who may not be registered in the above-mentioned dispensaries and may not be deprived of legal capacity by the court, but at the time of the transaction, nevertheless, are not able to understand the meaning of their actions or manage them.

A striking example is the sensational case of invalidating a transaction made by a person who, on the eve of the sale, was undergoing treatment in a psychiatric clinic. The apartment was sold in the interval between the seller’s discharge from the clinic and before the transfer of his personal file to the psychoneurological dispensary (PND) at the place of registration. The information turned out to be perfect.

During the trial, the seller died, and his wife became the beneficiary (plaintiff). Now she is trying to recognize the receipt written by the deceased seller as non-cash, thus proving that the money for the apartment was not transferred to him. We are monitoring developments and no decision has been made yet.

Certificates from the same district PND (ND) with the results of the examination, which indicate that the seller has no contraindications for making real estate transactions, can insure against such a situation.

Ignorance of the law

A person may also not understand the meaning of his actions or not control them if, at the time of the transaction, he is in a state of alcoholic/drug intoxication or under the influence of medications that affect consciousness.

There is a well-known fraud scheme, which was based on the fact that a seemingly normal seller, immediately after the transaction, “accidentally” got into an accident; he, of course, was sent for a medical examination and alcohol or drugs/substances, the use of which is incompatible with driving, were found in his blood car.

The results of such an examination in themselves can be evidence in court when a previously completed transaction is declared invalid.

Of course, in such a situation, the seller will have to prove that alcohol or drugs were taken before or at the time of the transaction.

But if the seller smells of alcohol during a transaction, it is better to reschedule it immediately rather than jeopardize it being declared invalid in the future.

Separately, I would like to say about the invalidity of a transaction that violates the requirements of the law or other legal act.

And the most logical way is to improve living conditions, while the funds under the certificate can be transferred directly to the seller if the youngest child has already reached the age of three.

And here the buyer is often faced with the seller’s reluctance to wait for money on the certificate, because until recently the Pension Fund transferred them within sixty days from the date of registration of ownership.

The Internet and other sources offer parents of minor children the following solution: pay the seller with their own funds, including when purchasing someone from the family (for example, one of the grandmothers) as the owner, and then, using maternity capital funds, buy out this share from the grandmother, registering it on minor children. And although such a scheme seems ideal to many, it is not legal, since compensated transactions between minors and their close relatives, as well as second-degree relatives, are directly prohibited by law.

An imaginary transaction, that is, one made only for show, without the intention of creating legal consequences corresponding to it, will also be invalid. Such transactions include the “transfer” of real estate to third parties, when the apartment is re-registered with a purchase and sale agreement to another person, but the transfer of money and real estate is not actually carried out.

There are also sham transactions, that is, those made with the aim of covering up another transaction, including a transaction on different terms. Let me explain: this is, for example, a gratuitous transfer of real estate into ownership (donation), formalized as a purchase and sale and vice versa.

Also, a transaction for the sale of an apartment, concluded at a price other than that specified in the purchase and sale agreement (most often significantly lower), may be considered sham.

Bankruptcy

In addition, bankruptcy of individuals today also creates new risks for real estate buyers. According to the law, transactions made three years before a citizen is declared bankrupt can be declared invalid.

At the same time, it is quite easy to become bankrupt - you need to have financial obligations in the amount of more than 500 thousand rubles. and not pay for them for more than three months. And the most unpleasant thing is that the responsibility in this case lies with the buyer.

The Civil Code of the Russian Federation contains a provision that a person who knew or should have known about the grounds for the invalidity of a transaction, after the recognition of this transaction as invalid, is not considered to have acted in good faith.

Let me explain: buying an apartment at a price below the market (lowering the price in the contract can also be classified in this category) can be regarded by the court as the buyer’s awareness of the seller’s plight or other defects of the property, due to which it is sold at a significant discount.

The lack of evidence that the buyer has taken all measures to find out these circumstances also works against him.

Therefore, another question arises here: how to prove that you are a bona fide buyer and not lose everything?

• Firstly, I would not recommend purchasing properties with a dubious history at a price significantly below the market.
• Secondly, demand the seller’s personal presence at the transaction, and even better, with certificates from the district PND (ND) stating that real estate transactions are not contraindicated for him (in extreme cases, ask the seller to undergo a medical examination directly at the transaction).
• Thirdly, pay close attention to the family situation (especially pay attention to possible ex-spouses, other heirs, etc.), obtain all relevant documents and statements from the seller.

It is possible to facilitate the collection of all the necessary information to ensure the purity of the transaction for the buyer and take into account all the nuances by contacting real estate specialists. Moreover, a legal report on the results of checking the legal cleanliness of an apartment, issued to the buyer by a real estate agency, is for the court evidence of the buyer’s good faith.