Buying land, a house, or an apartment represents an important investment, but do you know what are the steps to follow to protect your investment? In this post, professional brokers from Agriculture mortgages are going to tell you some important factors and challenges you should consider before buying a property.
Purchasing of real estate is a formal act, which must be carried out in a certain way, meeting special requirements.
These requirements are:
- The sales contract must be recorded in a public deed.
- The contract, once signed, must be registered with the real estate registrar of the place where the property is located.
- Both requirements must be met together for it to be understood that the property has been effectively transferred to its new owner.
How are these procedures carried out?
- The Public Deed of the contract of sale must be drawn up by a lawyer, who will ensure that the contract complies with all legal requirements to produce its effects. The details of the contract are sent by the lawyer to the notary and coordinates with the date on which the parties come to sign the document. Once the contract is signed, authorized copies of the public deed are obtained, one of which will be taken to the real estate registrar to be registered in the property registry and the other copies will remain in the possession of the buyer and the seller.
- The registration of the contract of sale is made in the real estate registrar of the place where the property or real estate is located. As a general rule, any person who has in his possession an authorized copy of the public deed of sale can request that the registration be made, but the frequent thing is, that it is the lawyer who drafts the public deed and requests the registration of the contract of sale.
What other points do I have to take into account?
- The seller must own the property. If the seller does not own the property, the sales contract does not have the effect of transferring the property to the buyer. That is why it is advisable to request that a lawyer carry out a study of titles prior to the sale, which gives the seller the certainty that the person selling is the owner of the property.
- When a property is purchased, the contributions (land tax) must be up to date with their payments. Otherwise, at the notary, they will not allow the contract to be signed.
- If the property is mortgaged and the property is sold outright, the new owner acquires the property with this lien. In the case of bank mortgages, authorization from the bank is often required to proceed with the sale and the mortgage is raised. To avoid this situation, it is advisable to request that a lawyer carry out a study of titles prior to the sale.
- There are certain rights of third parties that can affect a property, such as easements and rights of use and usufruct. When buying a property, these rights are maintained and can affect the new owner, and even deprive him/her of being able to use the property. To avoid this type of situation, it is advisable to request that a lawyer should proceed with the study of titles prior to the sale.
Five steps to buying a property safely
In the search for the ideal property, you could lose your investment if you do not take the appropriate preventive measures.
A little-explored alternative is the purchase of second-use properties that are up to 40% cheaper than a newly built property.
These should not be more than 10 years old so that it does not require a high budget in refractions.
Here are the 5 steps how to acquire this type of property economically and safely:
1. Check public records
When you decide to acquire a property, it is necessary to make a previous visualization in public records. If it is registered property, you must read the registration history, where it is stated who the owners are and were.
In the same way, if the deal will be made with a company, the lawyer recommends investigating the real estate agency with which it is intended to contract and if it has the backing of a bank so that the operation is much more reliable.
2. Obtain the real estate registration certificate
Before entering into a contract, it is suggested that you obtain the real estate registration certificate, a document issued by the notary that specifies the name of the property’s owners, its characteristics if there are lawsuits, liens, leases, mortgages, or any other information.
This document is supposed to be one of the most important, at the time of acquiring such a type of property.
3. Make a secure contract
Generate a sufficiently clear contract through a notary, where the amount to be paid for the property and its characteristics are indicated.
It is also important that one should go to the home and look at the property. It must be verified that it is unoccupied or available to the person who is going to buy it.
Once the verification stage has been completed, draw up a sales contract authorized by a lawyer and with the signed minute you must request the registry block of the property until the signing of the public deed.
4. Pay in parts
When it comes to a contract with a real estate company you must verify the existence of the company. It is also recommended that the buyer make payments in installments.
The worst thing you could do would be to hand over a lot of money at the beginning since even if you filed a lawsuit and won, it would be difficult to collect from someone who does not have capital.
5. Register your contract
The specialist explains that it is not enough to have the document or public deed to own the property right since it is necessary to register the act of sale so that it can be in public knowledge and have all the mechanisms of legal certainty provided by registration
These tips will allow you to buy a property with the certainty that you acquire it in the manner established by law. Get advice from a lawyer when buying property, it is an important decision, so prudence is always recommended.
We hope you found this blog post 7 Legal Documents Needed Before Buying a Property useful. Be sure to check out our post 5 Pieces Of Legal Advice When Buying Your Own Home for more great tips!
Have Experience in the Moving Industry? Want an Additional Income Stream? Work With All Around Moving!
The Work With Us program provides experienced moving consultants with the opportunity to run their own Relocation Consultant business from anywhere in the USA. We share profits 50-50 with you from all jobs you book with us. Click here to learn more.