What to Pay Attention to When Buying an Apartment

When buying an apartment, you should not make a decision hastily or superficially, as what matters is the apartment building as a whole. Whether the apartment building has been renovated or if such work is planned, what the general overhead costs are, whether there is a storage room and parking space, who lives in neighboring apartments.

We highlight five important keywords that definitely need your attention before making a purchase decision.

1. Form of Ownership

Is it apartment ownership (the owner owns the apartment and an intellectual share of the remaining building: storage box, parking space, etc.) or co-ownership? It is important that in the case of co-ownership, a notarial use order is established, without which a bank will not accept the apartment as collateral. There are differences between new and secondary market apartments: when buying a new apartment, it is expected that a notarial use order has been established for the storage box, storage room, and parking space. For secondary market apartments, the use order has typically developed historically. The use order entered in the land register is also valid for subsequent owners.

You should definitely also check other entries in the land register and building registry, such as the square footage of the apartment.

2. Mortgage

The land register also shows the encumbrances placed on the apartment. If a mortgage has been placed on the apartment, the bank must definitely be included in the transaction. It would be prudent to inquire with the apartment association whether the seller has any outstanding debts. According to the law, the association can demand that the previous owner's debt be collected from the new owner. It is also useful to know whether the association has taken out a loan and what the monthly loan payments are, or whether there are plans to take out a loan in the near future.

3. Management

Does the apartment association purchase services from a management company or are such work as cleaning the building area, lawn mowing, snow plowing done on its own and on what basis? In rural areas, you should inquire from the local government about the region's development and future plans. It is important in rural areas to know the heating solutions for the apartment building. If central heating is not available, does the building have its own central heating boiler and how is heating then arranged?

4. House Rules

To avoid tensions with the building or complex residents later, it is worth finding out the house rules. For example, whether pets are allowed or not, where laundry is dried, where bicycles and baby carriages are stored, how the grilling area in the yard is used, etc.

5. Neighbors

In an apartment building, it is important to know who lives on the other side of the wall, ceiling, or floor. Therefore, it is advisable to knock on doors before making a purchase decision, introduce yourself, and get acquainted with your future neighbors.

Additionally

It cannot be left unsaid that all agreements must be documented in writing. For example, which furniture items, appliances, lighting fixtures, window coverings remain in the apartment, which defects are present on the property and who will eliminate them by when. You should also note who and to what extent will pay the notary fee and state fee.

Responsibility transfers when the apartment is handed over, when readings are recorded and a handover-acceptance act is signed. If the previous owner still lives in the apartment after the purchase-sale contract is signed, they pay all costs incurred during that period, and their responsibility for the property ends with the handing over of the keys.

It is wise to involve a third party in the apartment purchase-sale process – a real estate agent, who helps in gathering information, concluding agreements and documenting them in writing; who ensures that the apartment meets all the conditions established in the contract upon handover. Although the seller hires the agent, an agent is always useful for the buyer when acquiring a new home!

Read also: what are the additional costs associated with real estate purchases.

Source: Arco Vara real estate office