Acquiring a property involves a series of intricate steps, each playing a crucial role in ensuring a smooth transfer of property rights. Once a prospective buyer identifies a property aligning with their expectations and budget, they must take charge of the legal procedures to facilitate a seamless transaction.
Key Stages in Second-hand Real Estate Acquisition:
- Initial Technical Verifications: Despite a property’s apparent appeal, a thorough inspection by an expert reveals potential hidden defects and construction issues. The expert’s report not only confirms market-aligned pricing but also verifies the property’s true value.
- Initial Legal Checks: Ensuring the absence of major legal issues, this step covers property conformity, legality, ownership details, and potential rights of third parties. It is crucial to confirm the absence of illegal constructions and ongoing legal procedures against the seller.
- Contract Term Negotiation: Upon receiving the contract draft, negotiations occur to reach legal consensus. If negotiations extend, parties may sign a preliminary agreement, temporarily binding them until the final signing. Beyond legal matters, this negotiation period is also apt for reaching agreements on commercial conditions.
- Financial Structuring: Alongside technical and legal investigations, the buyer must develop the financial structure before signing the contract. This involves seeking a bank and securing a mortgage. Anticipating and completing these financial steps during the pre-signing negotiation period is crucial.
- Contract Signing: Once both parties agree on legal terms and commercial conditions outlined in the contract draft, they meet to sign the acquisition contract. This act signifies their shared intent to proceed with the transaction.
- Cadastral Note Registration: Contract signing is followed by the registration of a cadastral note in favor of the buyer. Once registered, the seller is authorized to transfer the initial payment held in escrow by their lawyer to their personal bank account.
- Tax Procedures: In real estate transactions, both the seller and buyer are subject to capital gains tax and acquisition tax. Within thirty days of contract signing, they must independently or jointly declare the transaction to the tax authorities and make the respective payments.
- Payment of Contractual Installments: A crucial clause in the acquisition contract is the buyer’s adherence to agreed-upon payment schedules. These payments may also serve to remove any mortgage the seller has on the property.
- Handover of Keys: On the specified date in the acquisition contract, contingent upon receiving the full acquisition amount, the seller hands over the keys and legal documents necessary for the buyer’s registration as the property owner.
- Owner Registration: The final step is registering the buyer as the property owner in the cadastre, ensuring their rights and the unrestricted ownership of the property.
Note: The information in this article is not a substitute for specific legal advice and is only valid as of its writing date.
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