PURCHASING OF PROPERTY with UNFINISHED DOCUMENTS

Purchasing of property. Recommendations for buyers intending to purchase a property with unfinished documents. Basic aspects to be clarified in various situations.

There are sellers who think that since they bought a property with unfinished documents, it is not their business to arrange the property documents, too. This is, of course, a false judgement. However, if it appeared that your desired property:
– is reconstructed, or
– a land parcel you want to buy is not divided as a separate land unit,
– the building was constructed/reconstructed but has not been commissioned, we recommend you to start with the careful examination of all the available documents before you purchase the property.

1. Non-commissioned houses.

Firstly, check all the documents for the respective property at the current owner’s disposal. If the project is approved, has a valid building permit and corresponds to the actual situation, in this case the process of commissioning will take less time than in case of unapproved deviations from the initial project.
The basic aspects to be checked:
• Is there an approved project corresponding to the actual situation in kind?
• If there are deviations from the initial project, are the changes approved? In case of inconsistencies, you should consider the expenses necessary for making official changes in the project.
• Have the cadastral measurements been taken?
• Is there a measurement plan?
• Are there the documents on the electrical installation examination?
• Is there a report on the readiness of utility networks provided by a technical specification issuer?

2. Unapproved/non-legalized reconstruction of apartments.

Check how easy or difficult the respective reconstruction may be legalized. Combining of a bathroom with a toilet room is a relatively simple reconstruction and it is easier to legalize. Sometimes apartments are reconstructed in such a way that it demands the consent of 100% of owners of the respective building, for example, attaching of common premises to the apartment. One more question appears here – will all the owners give their consent? There is a probability that someone could disagree just as a matter of principle.
There are known cases when the owner cannot approve the planned reconstruction even before the works are started – despite of the fact that there are all the required calculations, technical solutions related to the construction and its safety, there is still some of the house owners who does not agree with the reconstruction.

3. A land parcel is not separated.

Implementing the detailed planning, the majority of municipalities do not allow separation on new land units unless all the utility lines and streets are constructed. We recommend you to find out the existing situation with the utility and streets projects. Are the projects elaborated? Do they need to be approved? You should also check when the start of construction is planned. What are the additional expenses necessary for the construction of all the required infrastructure to be taken into account after the purchase? In case of non-separated properties, when you buy a deemed share of the property, the price of course will be more attractive, but you should be aware that the construction of the infrastructure will take certain time. As our experience shows, the construction of all the utility lines and the streets may take up to one year or more, then, they are commissioned, and only after that, a new land unit can be separated.

If the matter of arranging the property rights is the same as the labyrinth walking for you, were are here to help you.

Our 20 years’ real estate experience, including 10 years in the public sector, allows us to claim that we are able to help you and solve your long-running unfinalized property issues. Find out more about our services here or contact us personally.

04.2020.

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