How to transfer money when buying an apartment

“I want to buy an apartment. How to transfer money, not to be trapped, and if possible a refund? If so, under what circumstances?” Natalya Deryugina, Kiev.

Catherine Malichenko, managing partner of Advocates Bureau “Malichenko and partners”:

“If you buy an apartment in the primary market, two payment options: in cash of the developer or through the Bank.

If it is a house under construction, I would recommend you to not to pay the full cost of housing — so that if suddenly the problems begin with surrender, not to lose all savings. Think of the savings on the discount at 100% payment, in this case, you can donate.

About refund: if you decide not to buy houses or other force-majeure circumstances (to be spelled out in the contract), I would not expect that this can be done quickly. I would say more, you can not avoid losses. Typically, developers prescribe the conditions of the money back with penalties for the investor.

They, too, can understand: the firm-the Builder no longer has these funds on hand, they invested in the construction, therefore, serves either to facilitate the sale of your finished housing or help you to sell your shares of on assignment.

But it will offer to make a conscientious developer, and from companies with a questionable reputation, you can hardly wait even for such assistance.


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If you purchase housing on the secondary market — the payment may be made to the Bank account, or, if we are talking about the economy, according to the gift agreement.

In the first case, the seller pays the real estate valuation and pays a tax of 5-15% of the purchase price and stamp duty (1%), the pension levy (1%) and the Commission of the notary (1%, but can be another amount). Often, by agreement, these costs take on equally the buyer and the seller.

The second option is through the deed — I wouldn’t recommend it, but if all you are going to — spend a transaction with an experienced lawyer. Taxes in this case smaller, but risks much more: after the purchase you may find that the apartment stretches a court train.