Important notes before buying real estate

1. Check the property being prepared for transaction to see if it is eligible for purchase or sale.

According to Article 118 of the Housing Law, real estate can only be bought and sold when it meets the following four conditions:

+ The house and land have full pink book and land use right certificate.

+ Land is not subject to dispute, complaint or lawsuit;

+ Not subject to seizure;

+ Land is not subject to recovery or is subject to clearance or demolition notice.

Before buying real estate, there are many important things to keep in mind. (Illustration: Internet)

So the first thing before buying real estate is that the buyer must find out information to see if the land is in the above areas. To verify the status of the land more clearly, after having information about the house number, land plot number, map sheet number, the buyer can go to the competent authorities or notary office to check the legality of the real estate they are about to buy.

In the case of buying a mortgaged property, the buyer will have to carry out more procedures and legal documents than with normal properties.

There are 2 ways to buy mortgaged real estate:

- Method 1: The buyer establishes a three-party agreement, including the buyer, the seller and the mortgage bank. With this method, the seller, the buyer and the bank must establish a three-party agreement regarding the deposit for the house purchase between the seller and the payment of principal and interest by the seller to the bank and the mortgage release procedure, notarization of the sales contract.

- Method 2: Replace the mortgaged property with another property. With this method, the seller will use another property to secure the loan and withdraw the red book of the house they want to sell to make a transaction with the buyer.

2. Check the qualifications of the person signing the contract

When going to see a house, learning about the house without meeting the owner directly, only working through a broker is something that seems simple but can easily leave big consequences. Because with the pressure of time and the price advised by the broker, the buyer is easily impatient in signing and paying the deposit before meeting the owner to sign the sales contract.

For the seller, only the person whose name is on the red book or a legally authorized person has the right to sign a deposit, sign the sale, and receive money. Therefore, in the case that the buyer transacts with a "non-owner", the risk will be great.

3. Declare house price

In many cases, buyers encounter a situation where the house has "two prices", meaning that two contracts are made, one contract records the actual value that the buyer pays to the seller, and one notarized contract records an amount less than the actual value, with the purpose of paying less tax.

In fact, many real estate transfer dossiers have been returned by real estate registration offices and tax authorities because the declared price in the contract is too low and the competent authorities require the parties to declare a reasonable and real price.

According to the provisions of the land law, the act of declaring a price lower than the actual price is considered tax evasion and depending on the level of violation, it can be subject to administrative or criminal penalties.

Minh Duc (Synthesis)

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