Transfer of rights to an apartment in a new building. What is this?

Today, quite often you can come across an offer to become the owner of an apartment in a new building by assigning the right of claim. However, in each specific case, you should figure out whether such a deal will be really profitable, or whether it is better to refuse it immediately.

The assignment of an apartment in a new building implies a transaction (conclusion of an agreement) under which the investor assigns his right to claim the residential premises in the construction of which he invested money to a third party.

Main advantages

• It is possible to purchase an apartment much earlier than, if necessary, investing money in the initial stage of development.

• If a transfer is offered in a nearly completed house or housing complex, then most likely it will be put into operation in the near future.

It is possible to purchase an apartment much cheaper than from the developer. At the same time, it is worth finding out all the information on the terms of the upcoming purchase. This information includes not only the cost of housing, but also its location, layout and other characteristics.

Existing risks of assignment of claims

Despite the fact that this type of transaction is characterized by a whole list of advantages, pitfalls can still occur:

• The developer may violate the deadline for putting the property into operation, which means that the new owner will not be able to dispose of the apartment.

• The entire amount of the cost of the residential premises is paid immediately, however, it will not be possible to take advantage of the purchase immediately (as is the case with the purchase of a property on the secondary market).

• The buyer risks becoming a victim of fraudsters who write the terms of the contract in such a way that additional payments are imposed on the buyer of the rights of claim.

How to avoid becoming a victim of scammers?

In order not to fall for the tricks of unscrupulous sellers who want to make money (and the main goal of many investors is making a profit), it is necessary to protect yourself even before signing the contract. To do this you should:

• Ensure that construction progresses as planned. If the object should have been put into operation a long time ago, but this did not happen, then it is better to refuse the purchase. The developer must have all permits in accordance with the current legislation.

• Carefully study the terms of the initial agreement with the developer – the agreement must contain a clause on the possibility of assignment. If this document establishes sanctions for the assignment, then it is worth stating that they will be imposed directly on the assignor.

• Analysis of the agreement for the assignment of rights of claim – study the terms of the document, it is usually tripartite (the investor acts as a third party), it is mandatory. To analyze the contract, it is better to contact a professional lawyer.

• If the assignment is carried out for the second or third time, then it is better not to take risks, since it is not always possible to study previous assignment agreements. In a situation where the assignor presents a regular investment agreement, it is worth thinking about. Such a document may simply be invalid, since since the beginning of 2006 these agreements in relation to residential properties have been prohibited at the legislative level.

• Have the assignment agreement certified by a notary office.

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