Defects in Real Estate Documentation Can Derail the Transaction

When planning to purchase a home, most people think primarily about whether the property meets their needs and desires, suits their family members, and looks the way a dream home should look. What people typically don't think about is whether the building has its paperwork in order and all necessary permits in place, even though this should be one of the first things to pay attention to.

Unfortunately, due to incomplete building registry data (for example, a usage permit is missing), the transaction may fall through entirely or be postponed for an extended period. The main victim in this situation is the buyer, because if a house doesn't have a usage permit, the bank may refuse to provide a loan or may set a condition that the usage permit must be obtained, which means the transaction gets postponed for an indefinite period and unexpected costs arise. Fortunately, people's awareness has grown recently and there is interest in the status of one's own property, although for an ordinary person, applying for necessary permits requires considerable time and stress. This is also the reason why people don't want to deal with this issue until they start selling their property.

In reality, however, things are moving quickly for the owner now, because there are long waiting lists at the relevant specialists' offices, communication with the local government takes time, and entering data into the building registry for the first time can be quite a headache. The most common deficiencies that cause transactions to fall through or be postponed are:

• Missing building and usage permits

• Missing notarial usage agreement for co-owned property

• Missing easements

All of these issues need to be dealt with sufficiently and certainly preferably before putting the property up for sale. Everyone has the opportunity to check their property documents from the www.ehr.ee website and, when deficiencies are discovered, contact specialists who will help apply for the necessary permits and put the building registry data in order.

Article source: Arco Vara