Buying or selling a property is a major life event that requires not only financial preparedness, but also thorough legal and administrative due diligence. To avoid potential problems and complications, here is an overview of the most important things you should look out for.
1. Check the legal status of the property
Before signing any contract, check carefully that the seller is the true owner of the property. Ask for an up-to-date title deed and check that there are no liens, encumbrances or other encumbrances on the property.
2. Attention to the correct contractual provisions
The contract of sale must be clear, precise and contain all the essential elements such as the identification of the property, the price, the method of payment and its due dates, the date of delivery of the property and other agreements between the parties. Missing or inaccurate provisions may give rise to disputes later on.
3. Technical condition of the property
The contract of sale must be clear, precise and contain all the essential elements such as the identification of the property, the price, the method of payment and its due dates, the date of delivery of the property and other agreements between the parties. Missing or inaccurate provisions may give rise to disputes later on.
4. Financing the purchase
If you plan to finance the purchase of the property with a loan, check with the bank in advance about the terms and conditions of the mortgage loan. Check carefully all costs associated with the loan, including the interest rate, loan origination fees and any prepayment penalties.
5. Tax obligations
When selling a property, don’t forget your tax obligations, especially income tax if you have owned the property for less than 5 years. You also need to address the issue of property tax payable by the owner on 1 January of the relevant year.
6. Transfer of ownership in the cadastre
Submission of the application for the entry of the ownership right into the Land Registry is an essential part of the process of transferring the property. It is important to comply precisely with the prescribed procedures and deadlines to avoid unnecessary complications or delays.
7. Property insurance
When buying a new property, it is wise to secure quality insurance to cover potential damage caused by natural elements, accidents or other unforeseen events.
Buying and selling a property is a complex process, but with sufficient caution and the right approach, you can manage it smoothly and with confidence that you have made the right decisions.
