Choosing a method of transferring money when buying an apartment

Using a safe deposit box

The safest and most popular way to transfer payment for an apartment is to place it in a safe deposit box. For a better understanding, you should imagine the situation. Let's say the seller and buyer have not yet determined the final price of the home, but are at the stage of drawing up a preliminary agreement. It should contain the procedure for depositing funds into a safe deposit box and the term for storing them there.

To place money in the bank, both the seller and the buyer must make a deal with him. At this point, a contract is drawn up for the rental of an agreement cell, which will spell out the basic conditions for using this banking service. It is also determined which party will open the cell. The agreement may also contain information about the real estate itself and the parties to the transaction.

Before you start using the safe deposit box, you should determine the exact list of documents that will be useful to one of the parties when withdrawing funds. Usually it is enough to show the purchase agreement, passport and a document indicating that the registration of the property was completed successfully.

Most often, the box is opened in the name of the home buyer. One month is enough to complete the successful purchase and sale of an apartment, so a safe deposit box in a bank is taken for exactly this period.

Results

It is important to remember that it is extremely rare that only one of the above methods is used in a transaction.

Usually everything happens according to a mixed system.

For example, the deposit is given to the seller in cash, and the rest through a safe deposit box.

Maternity capital can be used to pay off the mortgage.

For many of these options, bank services for recounting funds are used .

This is done to confirm the authenticity of the transferred banknotes.

This service is quite expensive, but not necessary, since usually the real estate agency accompanying the transaction takes on the recalculation functions.

Thus, you need to choose a method of transferring money when purchasing real estate based on circumstances and preferences.

If the main thing when making a transaction is reliability , it is better to entrust financial transactions to experienced specialists.

Adviсe

• Be sure to synchronize the transfer of money with the completion of the contract. Ideally, the seller should receive them exactly when he submits all the documents necessary for registering the right.
• State all terms and conditions in writing in the contract. This will help avoid further difficulties if something goes wrong.
• Don't be afraid to use the services of banks . Today there are a lot of reputable banks that you can trust with your funds.
• Check out the different options for cooperation with a bank in your region to incur minimal additional costs with maximum reliability.

Advantages and disadvantages of such a system

Transferring funds through a bank allows the parties to the transaction to forget about all the problems. The funds will definitely remain safe and sound until certain conditions are met. For reinsurance, banks offer a convenient system for checking banknotes for authenticity, and also carefully count them.

The process of placing finances in a cell can only occur if the parties to the agreement are present . This allows you to prove the fact that the money was actually deposited in the bank. Moreover, the seller has the opportunity to personally recalculate and check the money.

Another significant plus is that the buyer can always get his money back if suddenly the transaction is not completed successfully. This further protects citizens from any fraudulent activities.

Unfortunately, even such a secure system has problems . First, you have to pay in cash. This is not always safe for the participants in the transaction, since it is difficult to avoid fraud. Secondly, the bank cannot be held responsible for what is in the safe. The client can put whatever he wants there, and not just money. He may not disclose this information to the seller, so in the end it may turn out that the buyer had no money there at all.

Using a safe deposit box in a bank, like any other banking services, requires payment. In Russian banks this service costs approximately 3,000 rubles . But if additional support from managers is needed, the final check may increase in size. As a rule, the buyer is responsible for paying for all banking services.

Cash

The traditional form of payment for an apartment between the seller and the buyer is the transfer of money from hand to hand. This option is high-risk, so it is practiced with a high level of trust between the parties.

Cash can be transferred:

• before re-registration of ownership of the apartment in favor of the buyer;
• after re-registration of the apartment from the seller to the buyer through Rosreestr.

The first option is more risky for the buyer, because the seller may not show up for the state registration procedure. There are also risks that the transaction will be declared invalid due to the fact that the seller was not aware of what was happening. The second option of mutual settlements has additional risks for the seller, who simply may not transfer the balance of money after receiving owner status.

Usually calculations are made in several stages. First, the buyer makes an advance payment in the form of an advance payment or deposit. This amount is transferred to the seller upon concluding a preliminary purchase and sale agreement before registering the transaction with Rosreestr. After re-registration of ownership of the apartment to the buyer, the final payment for the property is made.

With the cash payment option, the buyer is strongly advised not to transfer money under any circumstances without a receipt from the seller. The receipt must contain information about the seller, the amount received and the basis for payment (prepayment or final payment), the date of receipt of the money, the signature and transcript of the seller’s signature.

Cashless payment for purchases using bank letters of credit

Only a few sellers and buyers know about the use of letters of credit. To pay at a bank, you need to open an account of your choice: in foreign currency or rubles. It is drawn up in the name of the party buying the apartment. The deposited funds are immediately blocked, and the seller will be able to receive them only after fulfilling all pre-agreed conditions.

The main condition for access to money in the bank is the presentation of a purchase and sale agreement and a passport. From a bank account, money can be transferred to other accounts or credit cards, or it can be issued in cash. We have already written in more detail about a bank letter of credit when purchasing an apartment here.

Cash and non-cash payments

Cash payment is a type of payment in which only cash is involved in the transaction , and electronic transfers are not used.

But this does not deny the bank’s participation in the settlement transaction.

Non-cash payment implies the actual absence of the use of cash in a transaction.

In this case, funds are transferred by electronic payments.

Pros and cons of using letters of credit

This payment method offers customers a completely cashless, secure payment experience. The bank strictly enforces compliance with all terms of the transaction, so the risk of deception by either party tends to zero.

As for the disadvantages, when cashing out funds, the seller will have to pay a certain amount for this operation. Out of the blue, you can lose significant money, especially when it comes to buying and selling in foreign currency.

But the most unpleasant drawback is the impossibility of quickly withdrawing funds if the transaction for some reason was not concluded. In this case, the buyer will have to go to court to check the actions of the parties and decide whose fault was the reason for the failure of the agreement.

Also, this payment method is not suitable for citizens who have problems with the tax service. The bank always notifies inspectors about the fact of selling the apartment, and if one of the parties is on the list of persistent defaulters, then difficulties may arise.

Transfer of funds from the hands of the buyer to the hands of the seller

This method of making payment for a newly purchased apartment is considered one of the easiest to understand. He:

• fast;
• makes it possible to pay in dollars;
• allows you to hide the actual cost of housing;
• does not require providing a certificate of income.

All of the above advantages can become disadvantages if the approach to buying and selling housing is incorrect. The last and penultimate subparagraphs imply a violation of current legislation, and this can cause problems.

In addition, cash is considered one of the most dangerous payment methods. No one can guarantee that the buyer will actually pay the full amount within the agreed period, and the seller will not take the money for himself upon termination of the contract.

Usually the process of transferring money occurs in the most hidden places. This can really prevent possible theft, but who can guarantee that the buyer pays with real bills and not counterfeits? Parties paying in cash always do not have enough time for such checks, so the risk of fraud increases significantly.

Transfer options

There are several main methods of settlement between a buyer and a seller when making purchase and sale transactions. The main ones include:

• one-time transfer of funds in full after the seller fulfills certain obligations (this may be the signing of an agreement, an act of acceptance and transfer of premises, submission of documents for registration, receipt of an extract on the registration of rights);
• transfer of funds in several stages (when, after completing each stage, the buyer pays the seller a certain part of the money);
• transfer of money through a letter of credit;
• transferring money through a safe deposit box;
• transfer of funds through a real estate agency;
• registration of the purchase of an apartment with the participation of mortgage funds;
• registration of the purchase of housing with maternity capital.

Depending on the conditions under which the transaction will take place, the possibility of choosing the procedure for transferring money also depends. The seller can make payment either in cash or by transferring funds to a bank account. The parties to the transaction must agree on all these points in advance and write them down in the contract.

Payment with a notary

Entrusting payment for a new apartment to a specialist is a competent and thoughtful move . An agreement is concluded with a notary, and a certain amount of money is deposited into his account. Roughly speaking, it becomes the same as a safe deposit box.

This involves completely secure storage of transactions, and the notary himself will check the correctness of filling out all documents. But, like all other professional services, a transaction with a notary will be expensive.

Before deciding to make a payment with the help of a specialist, you should take a responsible approach to choosing an office. A notary must have a license, otherwise in the end he may turn out to be a real scammer.

Risks

All lawyers unanimously declare that completely safe schemes for transferring finances when buying an apartment simply do not exist. Fraudsters manage to deceive careless customers even in banks. For example, it may happen that the money will not be put into the cell due to the lack of state registration of the document about the purchase of housing. In this case, the bank will not be able to issue funds, and they will remain there until all problems are resolved.

Another risk is associated with the deliberate delay of funds and the prohibition of control over the cell for the seller of the apartment . He will not be able to check whether the required amount is really there. Moreover, the situation will become even more complicated if he does not have the documents necessary to sell the home.

It is important to choose the right bank for such a responsible operation. You should not buy cheap services from small financial institutions. It is much easier to spend more and leave the money in a safe deposit box at a large bank than to regret later that the funds have disappeared somewhere.

Transferring money when buying an apartment

Advice from lawyers:

1. Please, what is the procedure for transferring money when buying an apartment? Thank you.

1.1. How do you agree? It is better to have it transferred to your account.

Did the answer help you?YesNo

1.2. Hello. Signing an agreement, giving a deposit, issuing a certificate from a notary and registering with the Justice Department.

Did the answer help you?YesNo

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2. How to secure the transfer of money when buying an apartment with an encumbrance.

2.1. Olga, good afternoon! It is not clear from your question what the encumbrance is, who imposed it and why. Without this information it is impossible to correctly answer your question.

Did the answer help you?YesNo

3. Do I need to make a copy of the receipt for myself about the transfer of money when buying an apartment?

3.1. Margarita, good afternoon! Required to prove transfer...

Did the answer help you?YesNo

3.2. The original receipt of the seller for receipt of money is kept by the buyer, the seller may have a copy - it is not forbidden.

Did the answer help you?YesNo

4. Buying an apartment from a non-resident of the Russian Federation Tell me whether it is possible to pay in cash with a non-resident of the Russian Federation when purchasing an apartment from him located on the territory of the Russian Federation. A non-resident is a citizen of another country; his authorized representative will be present at the transaction. And is it possible to transfer money to a trusted person?

4.1. Hello! There are no restrictions on the type of calculation. Which confidant are you writing about? Do you mean a representative by proxy? If so, look at the power of attorney to see if he can receive money from you.

Did the answer help you?YesNo

5. Is additional confirmation of the transfer of money required when purchasing an apartment from a mother’s daughter when paying from the mother’s account in a mortgage agreement for mother and daughter?

5.1. No, unless you need to confirm some special payments between buyers, just for them.

Did the answer help you?YesNo

6. I solely own an apartment, which I want to sell so that my son can buy an apartment for himself with the help of a mortgage. How to formalize the fact that I transferred money to him to buy an apartment.

6.1. You can draw up a donation agreement.

Did the answer help you?YesNo

6.2. Hello, Natalia. It all depends on whether you want your son to return this money to you later, or, on the contrary, do you want to provide him with the money for free?

Did the answer help you?YesNo

6.3. Good afternoon, the easiest way is through a notary. This also begs the question, for what purpose do you want to “register the fact of the transfer of money”, if as proof of where your son got the money for the apartment, then for this it is enough to keep the purchase and sale agreement with the stamp of Rosreesr on the registration of such a transaction, and you do not have to pay notary fee. If the option is for more complex family relationships, then only through a notary. Sincerely, Svetlana Yakovlevna.

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7. Please tell me if I understand correctly: a retired mother buys an apartment for 1.7 million rubles. Subsequently, he sells me an apartment for 1.7 million rubles. 1. She will have to submit 3 personal income tax-zero. Can I apply for a 13% property deduction? 2. Is there a statute of limitations between buying it and selling it to Me? 3. When filing with the tax authorities, do I have to confirm the fact of transfer of money? Is a receipt okay?

7.1. When selling an apartment that has been owned for less than 5 years, it is necessary to submit a tax return 3-NDFL. 1. When selling an apartment purchased after 2020, the sale price is compared with the cadastral value multiplied by 0.7. When selling, you can declare a deduction in the amount of expenses actually incurred and documented for its purchase (Article 220 of the Tax Code of the Russian Federation) If the cadastral value is overestimated, and this happens, then the declaration may not be “zero” In addition, when buying an apartment from close relatives property deduction is not provided. (Article 220 of the Tax Code of the Russian Federation) 2. If 5 years pass between the purchase by your mother and the sale, then you do not need to submit a declaration to your mother. 3. A receipt will do, but you will not receive a deduction for the purchase due to a direct prohibition (Article 220 of the Tax Code of the Russian Federation)

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8. What is the procedure for transferring money when purchasing a share in an apartment from a former spouse. Is it necessary to transfer funds to a notary?

8.1. Hello! No, it is not necessary to transfer it to his bank account.

Did the answer help you?YesNo

8.2. Laura, you yourself establish the procedure for transferring funds; the notary only records it in the contract. If you transferred before signing the contract, then the notary will reflect this; if after signing, then an encumbrance will appear by force of law.

Did the answer help you?YesNo

9. Who should write a receipt for a general power of attorney when purchasing an apartment when transferring money. Owner or trustee? If a trustee, then on his own behalf or on behalf of the owner?

9.1. If the trustee has the authority to receive money, then the receipt can be written by that person. If there are no such powers, then from the owner. In any case, the receipt is written by the person who receives the money.

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10. I am filing a tax deduction for the purchase of an apartment. With all the papers it is necessary to attach a receipt for the transfer of money, but during the purchase they did not provide a receipt; they indicated in the contract that the payment was made before signing the contract. Should the tax office accept such documents without a receipt?

10.1. The tax office will accept it, but will only refuse to pay the tax deduction. Was it really difficult to write a receipt, not to mention payment orders for the transfer of funds? You don't buy a can of beer in a store.

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11. Please explain what allocated shares mean? Upon purchase, the apartment was registered in my name; my father gave the money for the purchase. Two daughters lived with us at the time of purchase. At the moment, the eldest daughter lives separately. If property is considered acquired during marriage and is divided in half between spouses, what about an adult child? It turns out that the daughter has nothing? What if the parents made a will to transfer their share to their daughter?

11.1. Good afternoon Property acquired during marriage is not divided among children. You can now draw up gift agreements for your children and allocate shares to them. Or make a will.

Did the answer help you?YesNo

11.2. Hello, Rimma. In accordance with paragraph 1 of Art. 34 of the RF IC Property acquired by spouses during marriage is their joint property. Regardless of who is the title owner of the property. Children have nothing to do with their parents' property. If a will is drawn up, then in the event of the death of the testator, the daughter will receive the part that will belong to the testator on the day of death. If the division of the property of the spouses was not made before the death of one of them, the surviving spouse has the right to allocate his marital share from the inheritance estate.

Did the answer help you?YesNo

12. Tell me what is correct when buying an apartment, what stage is the first transfer of money, signing of an agreement, or registration of ownership.

12.1. Hello. First, the contract is prepared, signed, money is transferred, a receipt is taken, and an application is made to Rosreestr to register the contract.

Did the answer help you?YesNo

12.2. Good evening! The transfer of money must be completed when signing the contract, otherwise the registration of the transfer of rights will be carried out with an encumbrance.

Did the answer help you?YesNo

12.3. Hello! The procedure for settlements under a purchase and sale agreement is determined in the agreement itself, that is, as agreed. For example, before signing a contract, funds are transferred.

Did the answer help you?YesNo

12.4. Good afternoon Prepare the agreement, put the money in the box and go to the notary to register your agreement. Then you register it in the Russian register.

Did the answer help you?YesNo

12.5. Hello! It is advisable for you to contact a lawyer in person with this question and provide all the documents available on the case and then decide what to do. In any case, you need to study the documents before purchasing.

Did the answer help you?YesNo

13. When purchasing an apartment, an agreement on the assignment of the right to claim under the contract. share participation, a check for the transfer of money and an acceptance and transfer certificate are dated by the last days of December 2020. And the registration of ownership is dated by January 2020. When can I receive a deduction for an apartment? In 2020 or only in 2020? Thank you!

13.1. Hello, in accordance with the norms of the current legislation of the Russian Federation and the established practice of its application, you can receive a deduction for the last three years.

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14. We bought an apartment, before the purchase, the owner showed us that he had a storage room (on the floor), when handing over the keys, the key to it was not handed over, he kept silent, in addition, the loggias were in disrepair (the wooden frames from below were rotten, the glass was hanging loose) that creates a danger for others; in addition, the corner of the ceiling of the room leaked, although they assured that the roof had never leaked. There is no money for repairs; everything was paid for the apartment. Can we cancel the transaction or request compensation?

14.1. Hello period If a purchase and sale agreement is registered, it can only be terminated in court or the transaction can be declared invalid as concluded under the influence of a misconception.

Did the answer help you?YesNo

15. Sequence of actions when buying an apartment: concluding an agreement, transferring money, signing an acceptance certificate... The seller asks for a week to leave the apartment after the transaction is completed.

15.1. Hello. You can stipulate the deadline for the seller to leave the apartment in the purchase and sale agreement. Don’t forget to take a receipt from the seller for receipt of funds..

Did the answer help you?YesNo

16. When transferring money to buy an apartment, they didn’t take a receipt, can I demand it from the seller if a week has passed?

16.1. Good evening! Here it is probably more correct to ask than to demand. Maybe there were at least witnesses?

Did the answer help you?YesNo

16.2. Yes, ask without options.

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17. I want to sell an apartment in the city and buy a house in the village. I found a buyer for an apartment and a seller for a house. To buy a house I need money from the sale of an apartment. Therefore, between the sale of the apartment and the purchase of the house there will be some time when I need to stay in the apartment. But when registering a sale, a transfer deed is required. What to do, how to make sure that after selling the apartment and registering it, you can live in the apartment for 1-2 months?

17.1. If your buyers agree for you to live in the apartment for 1-2 months, then when concluding a purchase and sale agreement, sign an agreement with them on the free use of residential premises, so it will be calm for you - no one will kick you out, and for buyers - you pay utility bills payments and are responsible for the safety of property. Good luck!

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18. The situation is as follows: The father is going to arrive from abroad with a large sum of money (about 9 million) in rubles or their equivalent in euros. He wants to declare the money. Will he need to pay any tax on this amount? Next, it is planned to transfer this amount to me, registering it as a gift, with the goal of subsequently purchasing housing with this money (in my name). Again, the question is, will it be necessary to pay some kind of tax when transferring money as a gift, when buying an apartment? Thank you!

18.1. If you are flying from abroad, then you can bring this amount even for one person. Having declared it without fail. However, I would not recommend doing this. About fifteen years ago, a gang of robbers was operating at the Pulkovo airport, which was informed by some dishonest customs officers about the import of large sums of currency. Article 200.1. Smuggling of cash and (or) monetary instruments [Criminal Code of the Russian Federation] [Chapter 22] [Article 200.1]

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19. Scenario: buying an apartment, an agreement has been signed on the intention to conclude an additional payment agreement. The seller asks to make a non-cash payment through the bank immediately after signing the additional payment agreement, while the bank itself will issue a document that confirms the transfer of money, and the seller writes a receipt for receiving the money. If ADD. will not be registered - will it be possible to return the money in this situation? Is this scheme considered safe for the buyer?

19.1. Hello! Yes, you will get your money back.

Did the answer help you?YesNo

19.2. In this case, there is a chance that you will have to return the money through the courts for the rest of your life. I recommend making the calculation through a cell or after issuing a certificate of ownership.

Did the answer help you?YesNo

20. To get a tax refund when buying real estate, the tax office requires you to provide two receipts from witnesses about the transfer of money, since the apartment was bought by my husband from my father, is this legal? The deal took place in 2013.

20.1. Yes, if the contract does not indicate that the contract also has the essence of a receipt.

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Please tell me whether the fact of transferring money from a lawyer when buying an apartment is somehow reflected?

How much will the Bank Safe Deposit Box service cost when transferring money for the purchase of an apartment? Thank you.

When selling the apartment, they left a deposit because they had not yet issued a certificate for the apartment, the transfer of funds was registered manually and that the deposit was valid until 01.

When selling the apartment, they left a deposit because they had not yet issued a certificate for the apartment, the transfer of funds was registered manually and that the deposit was valid until 01.

When purchasing an apartment from a developer, upon concluding a purchase and sale agreement and drawing up a transfer and acceptance certificate for the apartment,

We bought an apartment with a mortgage with bad neighbors. The neighbors are noisy and periodically flood us,

Please advise on this issue: what documents should be required from the developer,

When buying an apartment using money from the young family program, is it necessary to place cash in the seller’s account?

When buying an apartment, is it possible to transfer money to the seller from a third party account?

Please tell me, when buying an apartment, the realtor asks for the presence of a witness when transferring money, is this important? and who can be brought in as a witness?

When buying an apartment (part of the money is a mortgage, part of it is cash), the seller insists on transferring the non-mortgage part in cash.