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We invest in equity construction

14.02.2018
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If you decide to invest in shared construction, you need to be on the alert. There are enough scammers today who are engaged in “construction”. What you need to know in order not to make a mistake?

First, check the paperwork. It must be a building permit. If there is no such document or it is in the process of registration, then it is not worth investing money. Most often, the place of this document is only a permit, for example, for landscaping. There must also be documents on the right to this land. Both documents must be available to the developer. The absence of at least one document may result in the freezing of the construction site, delays in the delivery of real estate or registration of the rights of equity holders to the ownership of apartments.

The most reliable guarantee for equity holders is a contract under Law 214. The builder should ask about the existence of this contract. It is also necessary to make sure that the builder is reliable. Another sign of reliability is the involvement of municipal and state authorities. Other contract schemes, for example, a preliminary contract or a share contribution, are a rather weak guarantee. But in the event that the developer has a sufficiently extensive experience, then the probability of a successful completion of the construction and delivery of the object on time is much higher. Legal advice on shared construction issues can be obtained here.

The contract must include:

one. Detailed description of the apartment. That is, floor, area, location on the landing. The method of payment should also be indicated here if the footage of the apartment turns out to be slightly larger than indicated in the contract.

2. The exact amount of your contribution. This amount will appear in your claim if the construction, for example, is frozen.

3. Delivery time for the apartment.

If you buy real estate with a mortgage, then be prepared for different interest rates throughout the construction phase, as well as registration of property rights. Prior to adopting a home, the interest rate is usually about two percent higher. But when applying for a mortgage for the purchase of a new building, you do not need insurance for your property rights.

To purchase an apartment is a rather complicated procedure, and when participating in shared construction, you must carefully study all the documents that the developer has and check his reputation in the real estate market.

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