This may seem like a straightforward process at first glance. In practice, however, mistakes can occur even in standard transactions. Problems often arise after the money has been transferred or the title has been registered. This is precisely why buyers and sellers consult solicitors before signing the documents.
The greatest risk in such transactions lies not in the contract itself, but in hidden circumstances:
- seizure of property;
- debts relating to the flat;
- problems with documents;
- co-owners who have not given their consent;
- legal disputes;
- forged powers of attorney.
For this reason, drawing up a sale and purchase agreement should begin with a legal due diligence check on the property and the parties to the transaction.
What does transaction support involve?
A property lawyer does not merely work on the text of the contract. Their task is to review the entire transaction thoroughly and minimise risks for the client. Support for property transactions includes
- verification of title;
- analysis of documents relating to the flat, house or land;
- verification of the seller via government registers;
- review of court cases;
- drafting or reviewing the contract;
- support at the notary’s office;
- monitoring payments between the parties;
- verifying the registration of title after signing.
At this stage, a property lawyer often uncovers issues that the buyer is completely unaware of. For example, a flat may be being sold under a power of attorney that has already been revoked. Or the property may be the subject of a legal dispute between heirs.
Most people buy property only a few times in their lives. Sellers and estate agents are aware of this. As a result, the buyer often overlooks important details. The most common issues during a sale:
- double sale of the property;
- unauthorised alterations;
- sale without the consent of the other spouse;
- utility bills in arrears;
- errors in title documents;
- the presence of registered residents;
- the risk of the transaction being challenged in court.
If a problem is discovered after the contract has been signed, disputes over the property begin. The person goes to court, wasting time and money. A legal check before the transaction is always cheaper than legal proceedings after it. Therefore, a property lawyer helps to avoid financial losses.
Procedure
The procedure depends on the type of property. However, a general outline can be outlined:
- verification of property documents;
- analysis of the seller and the property via registers;
- agreeing the terms of the transaction;
- drafting the contract;
- notarisation;
- settlement of payments;
- registration of the new owner.
The first two stages are the most problematic. Buyers sometimes check the extract from the register themselves, but this is not enough. This only provides basic information, without details or nuances.
Assistance from Svarog’s lawyers
The company’s lawyers support property transactions at every stage. The client receives:
- vetting of the property and the seller;
- drafting of a secure contract;
- management of legal risks;
- protection of interests during negotiations;
- assistance in complex situations;
- support in the event of disputes.
Therefore, when planning transactions, it is best to check everything before signing the documents. This will help avoid financial loss and lengthy legal proceedings.
Questions and Answers
How do I draw up a property sale and purchase agreement?
You need to check the property documents, agree the terms of the deal, prepare the contract and have it notarised. After that, ownership is registered in the new owner’s name.
What documents are required to buy or sell a flat?
Usually, the following are required:
- passports and tax identification numbers of the parties;
- documents of title;
- technical passport;
- extract from the register;
- certificates confirming the absence of debts;
- consent of the spouse in certain cases.
How can I check the property seller?
State registers, court cases, enforcement proceedings, the existence of debts and restrictions are checked. The documents on the basis of which the seller obtained ownership are also analysed.
What are the risks associated with a sale and purchase agreement?
Main risks:
- fraud;
- forged documents;
- seizure of property;
- hidden co-owners;
- legal disputes;
- title issues.
Do you need a solicitor when buying property?
Yes, a property solicitor helps to review the transaction, identify risks and protect the client’s interests before the contract is signed.
How much does it cost to have a sale and purchase agreement reviewed?
The cost depends on the type of property, the complexity of the review and the amount of work involved. A solicitor will determine the exact price after analysing the documents and the details of the transaction.