The bottom line. After entering into the rights of the owner, the buyer discovers that thousands of debts for water, electricity, etc. hang on the property. The situation is fraught with loss of time and nerves.
How to protect yourself? Before concluding the contract, find out what resources the house is connected to, what communications are on the site and who serves them. Ask the seller for a certificate of absence of debt or contact the contractors yourself to clarify the situation. The Hilton Head Island SC realtor is the best option in this case now.
What to include in the contract? Include the appropriate seller’s warranties in the text:
“The seller guarantees that there are no debts in respect of the alienated property, including the payment of communal resources: water supply, gas supply, heat supply, electricity, sewage”.
The territory does not have clearly defined boundaries
The bottom line. After registration of ownership, the buyer is forced to sue the neighbors about the borders.
How to protect yourself? Make sure that the site is delimited in full compliance with the law:
Check out the site boundary plan
What to include in the contract? In the subject of the contract, describe the land in detail and indicate that it is delimited in accordance with the Land Plan No.
The risk of buying a “pig in a poke”
The bottom line. The buyer may find that:
- In fact, one cannot build on a plot.
- The house is an unauthorized building.
- The land is not owned but inherited for life.
All these situations mean the loss of money and time for putting documents in order. In some cases, this is not possible at all.
How to protect yourself? Carefully check the information in the documents:
- In an extract from the USSR, the category of land and type of permitted use.
- There should be a separate statement on the house indicating the characteristics.
- The extract to the land should indicate that it is on the right of ownership and nothing else.
Do not trust the seller’s words if they differ from the information in the documents. In case of doubt, seek help from a specialist or refuse the transaction.
Payment under the contract
The parties regulate payment issues on their own, the main thing is to prescribe a detailed settlement procedure in the document. It could be:
Payment in cash personally to the seller
Several options are combined here. Prepayment (advance or deposit) is paid before the conclusion of the main contract on the basis of the preliminary. Final payment can be made on the day of signing the contract or after registration. It is also legal to provide for installments or deferred payments, which are secured by the seller’s pledge until full payment.
In any case, upon receipt of cash, the seller issues a receipt in which he indicates:
- Date and place of compilation.
- Who and from whom received the money.
- The amount received in numbers and words.
- What contract was transferred to?
- Lack of complaints.
- The receipt is drawn up immediately upon receipt of money.
- Payment using an intermediary.
To secure the settlements, the parties resort to intermediaries:
- Bank cell
- Notary deposit.
- Letter of credit or escrow account.
All these tools are additionally negotiated directly with the bank or notary.