Evaluation of own financial possibilities

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This needs to be done before they start looking.

Checking the status of your savings is very easy. Determining the amount you invest in the purchase is not so trivial. Always keep in mind that the price of real estate is not necessarily the only item that makes up the total investment.

Of course, the price of real estate is the most significant part of the investment, but also think of other costs.

Renovations, equipment costs, relocation costs, property acquisition tax and more can significantly increase the initial investment. It is therefore prudent to consider the purchase with consideration and to consider any accompanying costs in advance.

If you want to use a loan (mortgage and others) to acquire real estate, it is more than appropriate to visit a bank or contact a financial advisor at a time when you are starting to think about acquiring real estate. By pre-examining your own options, you will get a much better idea of how much you will get, how much you will repay per month, and you will also get a more accurate idea of what you will need to prove to the bank when applying for a loan. This way, you will also get the opportunity to react better and faster if you find a suitable property to buy.

It is still true that sellers and real estate intermediaries will appreciate if the applicant knows their options in advance and is able to prove their creditworthiness. In such a case, the sale can be significantly faster and many sellers are still willing to appreciate the quick action even with a discount from the sale price. The readiness and ability to act flexibly is therefore clearly your advantage.

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Choice of real estate type, Flat / house / land?

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Location selection, accessibility, transport, civic amenities. Of course, the final decision is always up to you. But whether you are buying a property for any reason, keep these reasons in mind, especially when considering all the pros and cons in relation to a particular offer.

Especially in cases where you are considering buying in an area you do not know well, it is appropriate to check the transport accessibility, civic amenities, or and the atmosphere of a specific place not only by studying commonly available information on the Internet, but also by repeatedly visiting the site in which you are considering the purchase. A better presentation of the property will never give you a personal experience and an impression of the place itself. Especially if you are buying a property for the needs of your own home, it is definitely worth taking the time and at least walking around the property in peace (even repeatedly at different times), to get at least a basic idea of the neighbors

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Property search

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Finding a suitable property can be quite time consuming and the subsequent implementation of the purchase is also not a completely trivial process. If you do not have time to waste, if time is more valuable to you than money, or you are simply not 100% sure in all respects, you may even use the services of real estate professionals as a buyer.

A Alone

If you are determined to handle the search yourself, regularly monitor the real estate offer on the Internet. In your "account" on Bigle.cz, you can use search "ltrs" to monitor everything that is happening in your preferred locations and the "watchdog" will automatically alert you not only to new offers that match your criteria, but also to properties that have been discounted.

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B Through a real estate agency

In the search phase, the broker can help with the selection of suitable properties, he can search for a suitable property in a specific location directly for you, not only through advertising servers, but so to speak directly in the field. If necessary, or based on your agreement, he can take the first inspections of real estate for you, check the legal status of the property, get detailed information about the property about its usability and its surroundings, can conduct the first phase of negotiations with the seller or his representative.

In the event that any property really interests you, your broker will be present to inspect the property together with you, check the submitted documentation, or provide documentation for the property separately. It can also provide other services such as technical inspection of real estate, etc.

Whether the property owner acts independently or is also represented by a real estate agency, your real estate agent can conduct subsequent negotiations on other conditions and requirements of the sale, such as negotiating the price real estate, method of real estate reservation, conditions and method of payment of the reservation fee, agreement on the content and conditions of the Purchase Agreement, Custody Agreement, Purchase Price, etc.

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Inspection of the property, preparation for the inspection and questions to the owner or real estate agent

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Did you find a property that interests you? The next step is a tour of the property. Try to arrange a tour at a time that suits you, ideally in hours when there is enough daylight, ideally in the day and in hours when you will be able to assess how much is a busy location in which the property is located. Set aside enough time for a tour, not only for a tour of the property itself, but also for a tour of the immediate area. If you have children, entrust them to the care of your grandparents on the day of the tour, if possible, go for the tour yourself.

Questions for the owner (real estate agent) Do you have any questions? Ask… Costs associated with the use of real estate, energy consumption, energy performance certificate of the building, construction and technical documentation, age of fixtures, or warranty periods of appliances… the owner or broker should inform you about all this, or submit individual documents for inspection.

Second inspection If you are really interested in the property, it is not necessary to request a second inspection before making a decision. On this occasion, you can introduce the property to children, family, focus on specific details that are stuck in your memory from the first inspection and possibly discuss the next steps.

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Technical inspection

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The technical condition of the property is a crucial topic. What seems like a small flaw in beauty at first glance can very often foreshadow a big problem in the future. Therefore, pay sufficient attention to the technical condition of the property, have the technical documentation submitted, find out from the owners when and to what extent repairs or reconstructions were carried out. If you're not sure about anything, don't be afraid to ask again.

If you want maximum security, take someone who is familiar with technical matters, or you can use the services of the Technical Inspection, an expert will check and evaluate the property for you and will prepare an expert report on the inspection of the technical condition.

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Reservation

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Are you interested in buying, have you agreed on the price of the property and want to take the next steps with the certainty that you are not doing them unnecessarily? If the sale of real estate is mediated by a real estate agency, the signing of the Reservation Agreement is almost always the next step in the order.

However, you can also enter into an agreement directly with the seller, if you do not immediately start preparing the Future Purchase Agreement, for example.

The essence of the "reservation" on the part of the buyers is a binding expression of interest in buying the property and on the part of the sellers or real estate agency it is a binding statement that they will not negotiate with other interested parties during negotiations with you. The agreement may also include arrangements on the method of subsequent implementation of the transfer. The reservation agreement also includes the buyer's obligation to pay a so-called reservation fee. Pay extra attention to the subsequent settlement of the reservation fee. Very often the booking fee is charged as the first part of the purchase price. In some cases, however, the reservation fee is charged in excess of the purchase price as a reward to the real estate agency. In these cases, you pay this "extra" and it is therefore important to pay adequate attention to the text.

Always read the draft agreement, as well as any other draft contracts, carefully. Require the submission of draft contracts well in advance of the signing of the dossier. If the seller and you handle the sale and purchase separately, you can order the execution of contracts at Bigle.cz

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Real estate valuation

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Did you find a property that interests you and you are not sure about the price when comparing similar adverts on the Internet? The valuation of real estate can be a certain guide, in this phase Bigle.cz can help you with its price analysis.

You will also need a price assessment if you want to use a mortgage loan to buy a property. In this case, however, the valuation is processed directly by the appraiser of the relevant bank.

An expert opinion may also be required when filing a tax return for real estate acquisition tax, but this opinion is prepared exclusively by a forensic expert in the field of real estate valuation.

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Contract documentation

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The law always requires a written contract when selling real estate. The law also imposes what the contract must contain. Beyond the previous two sentences, however, it is clearly true that everything else is a matter for agreement of the parties. Ideally, the agreement will be balanced and mutually beneficial for the parties to the contractual relationship.

A Reservation contract

It is mainly used by real estate agencies. Either as a two-party (ie the participants are future buyers and a real estate agency) or as a three-party where the seller is also a participant. Simply put, it is a written confirmation of interest in buying real estate, the obligation of the real estate agency to provide cooperation and the obligation of the seller to sell. The contract should clearly include the deadline within which another contract will be signed (SoSB, KS) and it may also include other conditions and requirements of the sale. In this respect, the reservation contract is very close to the future purchase contract and in some cases essentially fulfills its role. In most cases, the reservation contract also includes an agreement on making a reservation deposit - a declaration of serious interest in buying real estate.

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B Future purchase agreement

It is the responsibility of the future buyer and seller. Through this contract, the contracting parties confirm in what time horizon and under what conditions they will conclude a purchase contract, or in what wording.

It must contain:

  • Designation and identification of the contracting parties
  • Subject of performance
  • Date of performance
  • Possibly. contractual penalties resulting from non-compliance with individual provisions

The contract on the future purchase contract is suitable if at the time of signing it we do not yet know exactly when we will specifically meet all the conditions necessary for concluding the purchase contract. Always keep in mind that any contract will be as good as the information you provide to the contract creator. Of course, an experienced lawyer knows what the contract must contain and, based on his experience, will recommend a number of things, but even he may not know everything you say and promise to buyers during negotiations. Therefore, always pass on all information in the most complete form possible. Always pay attention to the subsequent control of draft contracts and do not be afraid to discuss any ambiguities with the lawyer in detail.

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C Purchase contract

The requisites of the purchase contract are based on the Civil Code, specifically on Act No. 89/2012 Coll. The purchase contract of the real estate must, of course, indicate the individual parties involved in the process of selling the apartment or family house, ie the buyer and the seller.

Other necessary components are a description of the property that is the subject of the purchase, the purchase price and the date of its payment. These parameters must be included in the purchase contract. However, by signing the purchase contract and paying the purchase price, the ownership of the property does not pass to the new owner. This fact will occur only after the registration of the new owner in the real estate cadastre. It is therefore good to state the date of this act in the purchase contract and to add an agreement on the invalidity of the purchase contract in case of its violation (and possible sanctions for each day of delay of this act in favor of the new owner).

The Civil Code does not describe the exact wording of the purchase contract and it is therefore possible to agree on its final wording. Nevertheless, or perhaps precisely because you have managed the sales process independently up to this stage, I strongly recommend entrusting the preparation of contractual documentation to professionals. Ideal for lawyers who specialize in real estate issues.

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D Attorney custody

It is ideal to entrust safekeeping to someone who is already involved in the sale. Therefore, if the contracts are prepared by a lawyer, it is appropriate to choose one that also offers attorney custody. If the contract is being prepared by a notary, it is ideal to use his services in this direction as well. In general, however, notarial custody can be and usually is significantly more expensive.

In some cases, it is worth considering using a bank deposit with a bank that provides a loan to the buyer. Not every bank offers this service, the prices of bank deposits vary greatly from case to case, bank to bank. In addition, the bank providing the custody will to a large extent follow the conditions of custody that you model yourself.

If you set the conditions inappropriately, you do not treat all eventualities, you can largely blame yourself.

My personal recommendation follows from the structure of this paragraph. The ideal choice is a certified lawyer providing custody and specializing in real estate issues.

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E Cadastral office

Have you signed a Purchase Agreement, the purchase price is kept in attorney's custody? The preparation of the Proposal for the deposit of the ownership right and the submission to the cadastre is waiting for you. If you use a mortgage loan secured by a lien on the property you are selling to pay the purchase price, there will even be two submissions.

For the first time, property owners are applying for a lien in favor of a lending bank. (one of the most important conditions for drawing a loan) For the second time, a proposal for the deposit of ownership rights is being submitted to the cadastral office. The Real Estate Cadastre contains a set of data on real estate, in particular their list and description.

A proposal to change the registration of the ownership right of real estate is submitted either by all participants in the legal act or only by one of them. Attached to the deposit proposal will be a purchase contract with verified signatures of all participants. After submitting the application for a deposit to the relevant cadastral office, a procedure will be established and the seal will be marked. This means that in the general view, basic information about the ongoing proceedings will appear on the cadastral office's website and in the first phase also a 20-day protection period in which the cadastral office notifies the property owners that its property is undergoing a change.

As this is a procedure that you initiated yourself, do not respond to the letter sent by the cadastral office. After the end of the 20-day protection period, the cadastral office will prepare a proposal, check the content of the contracts and, if everything is in order, allow the deposit. It shall again inform all parties to the proceedings of this fact in writing. I.e. the letter will be received by both the seller and the buyer. If everything is in order and the deposit of the ownership right is made on the basis of the permission of the cadastral office, the ownership right to the real estate arises retroactively, with effect from the day of submitting the proposal for the deposit of the ownership right.

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Insurance

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If you use a mortgage loan to buy a property, one of the requirements of the lending bank will be that the property be insured for the so-called reproduction value. This simply means that in the event of the destruction of the property (fire, flood, etc.), the insurance will cover the costs necessary to "rebuild" the property. In addition, it is of course prudent to have household insurance, etc.

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Handover of real estate

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In normal cases, the transfer of real estate follows the transfer of ownership rights and payment of the purchase price. From this point of view, this is basically the last phase of the sale of real estate. The date of handing over the real estate should be clearly specified in the purchase contract, either on a specific date (1.1. 2020) or by a period derived from the fulfillment of another fact (eg within 14 days after payment of the purchase price to the seller's account).

A Transfer of real estate

It is no exception that the transfer of real estate takes place earlier on the basis of an agreement of the contracting parties.

Example: The property sold is already unoccupied at the time of the sale, contracts are signed, purchase prices are deposited in attorney custody. The property is formally handed over after payment of the purchase price.

The so-called handover protocol should be prepared for the handover and takeover of the real estate, containing:

  • Nationality of handers and buyers, including their contact addresses
  • Real estate specification
  • List of possible equipment
  • Condition of the property including confirmation that the property is handed over in condition and in accordance with the purchase agreement in case anything is inconsistent, it should be recorded in the handover protocol as well. Ideally including the date in which the remedy will be agreed
  • States of media / energy meters (water, electricity, gas, etc.)
  • Number of transmitted keys, including the designation of what they are used for (3xgate, 3x entrance door, etc.)
  • Space for further notes smooth handover of the real estate payment of the purchase price, resp.

Release of its last part from safekeeping on the sellers' account. However, such an agreement gives the maximum possible degree of certainty that the property will be handed over to new owners in perfect condition. Of course, the part of the purchase price retained in this way should correspond to the situation and needs. Ie. If the subject of the sale is an apartment in its original condition before reconstruction without any internal equipment, the amount of the deferred amount to be paid will undoubtedly be significantly lower than in the case when the apartment is sold, including complete equipment worth hundreds of thousands.

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B Energy transfers

The ideal procedure is to have specific energy suppliers identified before the sale of the property, with the sellers together with the sales protocol to write and sign the relevant ones forms and documents, which subsequently together with the sellers, or separately on on the basis of the power of attorney, you will deliver to the relevant supplier with whom you will conclude a contract on energy supply.

Especially when transferring electricity and gas, be sure to log off the original customer and the registration of a new one took place immediately after each other. Otherwise the electricity meter / gas meter may be dismantled and subsequently installed become more expensive.

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