In Odesa, by the time construction is completed, there are practically no free apartments left from the construction company, but there are many offers from investors.
In this video I will tell you how to correctly buy an apartment by assignment:
- What is an apartment assignment?
- What documents need to be prepared by the seller before the deal?
- What else is needed if the building is already completed?
- What needs to be checked at the deal?
- How is the assignment processed?
- What documents does the buyer receive?
What is an apartment assignment?
I'll explain with an example. Suppose the first buyer signs a contract with the construction company and makes payment under the contract. The developer undertakes to build the building and hand over the apartment.
Having received the money, he became a debtor, and the buyer became a creditor. That is, the construction company has obligations, while the buyer has the right to demand the apartment.
In order to sell the object while still under construction, the first buyer assigns this right of claim to a new buyer. Such a sale is formalized by an assignment agreement (cession agreement).
What documents need to be prepared by the seller before the deal?
First, you need to obtain two extracts from the encumbrance registry of movable property. The first request is by the seller's surname, first name, and patronymic; the second is by their tax code. These extracts are prepared by notaries and will show any arrests or encumbrances placed on the property, if any.
Then a full extract from the civil status acts registry based on the marriage record is needed. It is issued by the Registry Offices (RAГS). I have left a list for you in the description link.
If the seller was or is married at the time of purchasing the apartment, then consent from the spouse for the sale is required. Such consent can be formalized with a notary.
What else is needed if the building is already completed?
The seller must settle any utility debts and obtain the corresponding certificate.
It is also important to check whether ownership of the apartment has already been registered. This information can be verified by a notary.
What needs to be checked at the deal?
Be sure to review the original apartment purchase agreement. In an assignment, all rights, obligations, and liability pass to the buyer.
I recommend comparing the payment schedule under the contract with the actual payments made. Proof of payment can be a receipt from the cash incoming order or a bank statement of account movements.
It is important to obtain from the developer a certificate confirming payment under the contract and the absence of claims.
How is the assignment processed?
Usually with two contracts. First, the Agreement on Assignment of Claim. It may also be called a cession agreement.
Then a three-party agreement with the developer's participation to replace the buyer in the original apartment purchase agreement.
What documents does the buyer receive?
The seller transfers to the buyer the original contract and all its attachments.
Also documents confirming payment under the contract.
And finally, the certificates and extracts from all the registries I mentioned above.
As you can see, processing an assignment is not a trivial task. Some developers who care about their reputation require
