Buyer's costs when buying an apartment, which can be avoided

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Published: 12/19/2017

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Concluding a transaction for the purchase and sale of an apartment for the buyer is fraught with large expenses, which include not only the funds spent on the purchase itself. The list of expenses includes paperwork, as well as the services of a realtor. If you purchase a home with a mortgage, costs may also increase.

• Major Buyer Expenses
• Costs when buying an apartment with a mortgage

How the transaction is carried out

Before understanding the costs imposed on the parties to the transaction, it is necessary to familiarize yourself with the features of its implementation:

1. First, the seller determines how he will sell the apartment - independently or through a realtor. Now real estate agencies “intercept” 95% of advertisements, but owners can refuse their services. If the owner agrees to cooperate, the cost of finding a buyer is usually included in the price of housing and amounts to 50,000 - 100,000 rubles. If the apartment is sold not on the secondary market, but from the developer, the buyer himself determines whether he needs the services of a realtor and pays for them himself.
2. The parties enter into a purchase and sale agreement. Now there is no need to have it certified by a notary. They can complete the document themselves. If the parties decide to contact a lawyer, the specifics of payment for his services are previously agreed upon. Usually they pay equally or the obligation to pay rests with the buyer.
3. After concluding a purchase and sale agreement and transferring money, the buyer registers ownership of the apartment. The state duty is 2,000 rubles. – for individuals, and 22,000 rubles. - for legal entities.

IMPORTANT !!! If an apartment is purchased with a mortgage, the buyer must independently resolve all issues related to registration.

In this case, the procedure looks like this:

1. The borrower chooses the bank offering the most advantageous program and submits an application for a mortgage.
2. After preliminary approval, documents confirming identity and solvency are provided to the bank. If the borrower is married, the spouse is automatically involved as a co-borrower.
3. An apartment is being searched. It must comply with the bank's standards. It is not allowed to purchase housing in disrepair or with encumbrances.
4. The bank evaluates the property, the borrower does not pay anything - this service is provided free of charge.
5. A preliminary purchase and sale agreement is concluded with the seller.
6. An agreement is drawn up. There is no charge for this.
7. After concluding the main purchase and sale agreement, the buyer formalizes ownership, having previously paid the state fee.

IMPORTANT !!! When purchasing a home with a mortgage, the borrower will have to pay for insurance, the amount of which depends on the cost of the home. Usually it is 50,000 - 70,000 rubles. annually. He also pays interest for using the loan, their amount can be equal to the price of the property - it all depends on the amount and term of the loan. A prerequisite is making a down payment; this is also done by the buyer, but some lenders provide home loans without it.

Expenses when buying an apartment: who pays for what?

25.09.2017
Every person dreams of having their own home. To achieve this, many have to save for a long time, or use mortgage lending to buy an apartment.

But not everyone realizes that the amount to purchase housing includes not only the cost of the apartment, but also some additional expenses.

Read on to find out what costs the seller and buyer bear when buying and selling real estate, what additional costs can be expected in this or that case, who pays for the execution of the contract, and what else is needed to complete the transaction.

Buying a home

Real estate purchased on the housing market is divided into two main types:

1. Primary. These are houses or apartments purchased either at the construction stage, that is, in shared participation, or in already completed buildings. In fact, housing is being purchased for the first time, which means that a certificate of ownership has not yet been issued. The primary housing market, especially if it is a plot for shared construction, is associated with considerable risks for buyers.
2. Secondary. The property passes into secondary status immediately after registration of ownership rights to it. Buying housing on the secondary market is in many ways more profitable. In this case, you can immediately register and move into the purchased living space.

Any purchase and sale transaction is confirmed by legally and legally agreed upon official documents.

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1. A real estate company or a free real estate agent will find an apartment among the options offered on the market, help prepare documents for the transaction, and provide support services in departments;
   or, on the contrary, they will show the object to the buyer. On average in Russia the cost will be 50 thousand rubles. (or 5% is added to the original price of the apartment).
2. Drawing up a purchase and sale agreement from a lawyer, on average - 1,500 rubles. on the territory of the Russian Federation.
3. The state duty for the assignment of property rights in Rosreestr is 2000 rubles. These costs are most often borne by the acquirer of property rights - the buyer of the apartment.
4. To certify ownership and the absence of encumbrances on the apartment, an extract from the Unified State Register of Real Estate in Rosreestr or the MFC is taken; on a regular paper form the amount will be 300 rubles, and on an electronic medium 750 rubles, respectively.
5. It is necessary to obtain a notarized consent of the spouse to sell the property from a notary, for which you need to pay 500 rubles.
6. If a representative of one of the parties will participate in the execution of the purchase and sale transaction, a notarized power of attorney is required - 100 rubles for close relatives and 500 rubles for all individuals.

The total cost will average 55 thousand rubles.

The state duty is traditionally paid by the acquirer of the property rights to the object under the purchase and sale agreement, that is, a receipt is issued to the buyer, which must also indicate his passport details. If spouses purchase an apartment for joint use, one of them can then indicate his name and make the payment himself.

The amount of state duty for standard real estate in Rosreestr is stable and amounts to 2,000 rubles. The state exempted from payment only individuals who are legally recognized as low-income citizens (they must be registered and have the appropriate certificate with them).

Important! This amount of state duty when completing a purchase and sale transaction is established for an individual, both for a citizen of Russia and for a national of another country.

Minor citizens are not exempt from paying the fee, and their receipt must be paid to their parents or guardians. Thus, if you represent the interests of a child under 14 years of age in a purchase and sale transaction, put your name on the receipt, but only the legal representative has the right to do so.

An older child has the right to put his name on the receipt and even pay for it himself using his passport (you can learn about the specifics of registering the purchase of an apartment for a minor in our article).

If the transaction is made to take ownership of common property in an apartment building, and this fact is stated in the purchase and sale agreement, the state duty will be only 200 rubles.

If a transaction involves several participants at the same time, and three or more shareholders enter into rights, the state duty is divided equally among everyone.

For example, three buyers, then each contributes 667 rubles (666, 67 must be rounded). In this case, a receipt is issued to each acquirer of rights and is paid by him.

We talked in more detail about registering the purchase of an apartment in joint ownership in this material.

Most often, the buyer himself turns to the agent to find a suitable apartment, in which case he is told about the range of services; a receipt or agency agreement is drawn up indicating the price. But it happens that a company adds up the cost of its services and the cost of the property.

It may happen that the client does not even know that he is paying for the work of a realtor. Many agencies do not charge a fee at all from the seller, even if they advertise his apartment in their sources, especially if the apartment is regarded as a profitable property. The reason again is that the entire cost of the cost will be covered by the buyer.

But in the case when clients order transaction support, assistance with drawing up an agreement, or specify additional services, the seller can also be provided with an invoice.

Quite affordable prices are maintained on the market for services among Moscow lawyers for drawing up sales and purchase agreements. This is largely due to the prevailing competition of the metropolis, as well as the right approach to work and labor organization (consultations on the Internet, a significant staff of young specialists). The price for a standard purchase and sale agreement is on average 1,850 thousand rubles.

The services of law firms in Novosibirsk and Nizhny Novgorod will cost much less, although market offers are noticeably limited and the choice is relatively small compared to Moscow and the northern capital. Ekaterinburg does not differ in prices, and they can be said to be average for Russia. The average price for drawing up a standard contract is 1,500 rubles.

Chelyabinsk lawyers also maintain average prices. A regular sales contract, which will be drawn up within three days, will cost the customer 2,000 rubles. Prices in Kazan are not much different. But you can often find a ready-made package of services. So for 5000 rubles. lawyers in this city will check the encumbrances on the property, prepare the necessary documents and accompany you during the transaction at the department.

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On a note. In Samara they promise to prepare a purchase and sale agreement in 1-2 days. The cost is one of the lowest in the country - only 1,300 rubles.

And there really are a lot of such proposals. Changes to the clauses of the standard document are paid additionally, but if the transaction does not cause any concern to the parties, a standard agreement may be quite sufficient.

The most unusual conditions for drawing up an agreement are found in Omsk - companies are ready to offer their clients installments and split payments, while the prices are both very low and high - if we are talking about a package of services.

When drawing up a purchase and sale agreement, the buyer of an apartment must be prepared for the fact that, in addition to the basic amount, he will be subject to a number of additional expenses.

Drawing up a transaction involves paying state fees, issuing certificates and documents, renting a safe deposit box, and the services of a notary and realtor.

The parties independently agree on the procedure for payment, but the buyer is traditionally responsible for everything related to his documents and taking possession. He also pays all costs associated with obtaining a mortgage himself.

Purchasing an apartment or other real estate property involves significant expenses on the part of the buyer. Many people choose an apartment at a close price that matches the buyer’s available funds. However, in addition to the cost of the object, both parties to the transaction are subject to additional costs associated with its execution.

The legislation does not establish the party that must pay for them, so the seller and buyer independently agree on who makes the payment and for what. But in the real estate purchase and sale market, certain traditions have developed regarding this issue.

Payment of the state duty is a mandatory condition for carrying out a transaction related to the sale of real estate. Registration of the right to real estate is traditionally assigned to the buyer - the person acquiring it. However, the parties may agree on a different settlement procedure.

Since for individuals the amount of this type of state duty is small (only 2 thousand rubles), usually there are no problems with its payment. And for legal entities concluding a real estate transaction, its size is more impressive - 22 thousand rubles.

The buyer is also required to register changes in ownership of the property in the cadastral register. Application for it is carried out without charging a fee to the applicant.

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Today, a purchase and sale agreement does not require mandatory notarization, as it was previously. The refusal of this person to participate significantly reduces the cost of registration, since his services cost the parties from 1% to 1.5% of the total transaction price.

The parties can either draw up the agreement themselves or seek the help of a lawyer or real estate agency. The cost of services for drawing up such documents varies from company to company, but generally ranges from 3 to 5 thousand rubles. Based on the complexity of the transaction, the price may rise to 15 thousand rubles.

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In this case, there are two options:

• If there is no contract for shared participation in construction, but the buyer has complaints regarding the quality of the work, simply do not sign the contract with the company.
• If a share participation agreement was concluded, but the developer did not fulfill his obligations or the work turned out to be of poor quality, you can challenge the transaction by sending a pre-trial claim addressed to the manager or other responsible person, or by going to court.

Buying an apartment on the secondary market

Independently purchasing real estate from the owner is fraught with great risks: it may turn out that it is under an encumbrance, and the transaction may subsequently be challenged by third parties. In this case, the buyer is likely to be left homeless and without money.

For example:

• The property is in common shared ownership, and the share was sold without following the mandatory procedure, when the seller must first request in writing consent from the other owners to purchase its part, because they are the first-priority buyers. If there is no response, after one month he can sell his share. If there is no prior notice to the other owners, they may challenge the transaction in court.
• Presence of minors among those registered in the apartment. In this case, the sale of housing is possible only after the child has first been provided with another home with registration. If this condition is not met, parents or guardianship authorities may petition to annul the transaction.

Purchasing real estate on the secondary market is fraught with negative consequences, so it is best to entrust the verification of the seller’s integrity to a qualified lawyer. The cost of services depends on the region of residence and usually varies from 5,000 to 15,000 rubles.

How much does it cost to draw up documents and apply for a mortgage?

In addition to the obvious mortgage costs - interest on the loan, the buyer bears additional:

• Costs for appraising an apartment. When applying for a mortgage, banks always ask to estimate the market value of the property. Services for issuing an independent appraiser's opinion can cost from 10,000 rubles.

For more information about appraising an apartment, watch the video:

• Personal insurance is not mandatory, but it can significantly reduce your mortgage interest rate. Although the bank does not have the right to impose personal insurance, borrowers are placed in such conditions that life insurance is simply more profitable than receiving +1.5% on the loan rate. Insurance is issued once a year during the entire mortgage period.
• Insurance of real estate (collateral) is mandatory.

When agreeing on mortgage terms with the bank, you must clarify all these points. A real estate lawyer will help you analyze the loan agreement for other hidden fees and charges.

Document costs

The main list of expenses is related to paperwork. The list that will be needed to complete the transaction is provided by the seller and paid for by the buyer:

• Explication, cadastral passport - cost 2,000 - 3,000 rubles.
• Notification of the absence of arrears in tax and utility payments is free.
• Extract from the Unified State Register of Real Estate. The order will cost 750 rubles. Required to verify ownership. Issued through the MFC.
• Certificate of the number of people registered in the living space - no fee is charged.

In 2020, the list of required documents for the seller is not established (with the exception of an extract from the Unified State Register), but if necessary, the buyer can request an extract from the house register in order to avoid the appearance of applicants to challenge the transaction.

Optional but possible expenses

In addition to the main costs that require payment, the borrower may need the following services.

Additional documents

Extracts from Rosreestr confirming the absence of encumbrances and restrictions.

Certificate of repaid loan obligation - often provided for a fee. In addition, the borrower sometimes needs the lender's permission to register family members or consent to remodel the apartment that is the subject of the pledge.

Certificate of address compliance – 500 rubles.

Sometimes banks require confirmation of legal capacity, which requires certificates from a psychoneurological dispensary.

In some cases, BTI calculations are necessary.

Legal services

If the preparation of documents and their registration is carried out by proxy through a lawyer, then these services are paid in an average amount of about 30,000 rubles. The average market tariff is 1 - 1.5% of the property price.

Payment instead of the seller by agreement

The borrower can repay the seller's debt upon agreement of the parties in exchange for a reduction in the cost of the apartment. It may include debts to housing and communal services, energy supply organizations, and the tax service. This includes legal confirmation of redevelopment, which costs about 30,000 rubles.

Other costs

The work of a realtor or mortgage broker is not a prerequisite for the bank and depends on the desire of the borrower. Services for the selection and registration of housing amount to 3 - 8% of the cost of the purchase and sale object. Assistance in choosing and applying for a loan is paid at a rate of 1 - 3% of the amount borrowed.

Sometimes it is beneficial for a client to pay a one-time commission for a rate reduction. To reduce the rate by 0.5 - 1.5 points, you will need to make a payment of 1 - 4% of the loan amount.

Some financial institutions charge a fee for checking the reliability of an apartment in a building under construction. The commission is set both as a percentage and as a fixed amount. The tariff is 4,500 – 15,000 rubles.

Resubmitting an application at some banks is a paid service.

A surcharge may apply for urgent services provided.

Buying a mortgaged apartment

If the apartment was previously purchased with a mortgage, but subsequently the citizen decided to sell it, he must request written permission from the bank. Without this document, the transaction may be cancelled.

The sale of a mortgaged apartment can be carried out in one of the following ways:

• The borrower independently repays the debt and then sells the home. The lender's permission is not required, because there will be no encumbrances.
• The buyer rents safe deposit boxes: he places money in one for the seller, and in the second for the bank. This way, you can pay off the mortgage instead of the owner, and leave part of the money for him in the form of the difference.
• Re-registration of a mortgage for a new borrower. This is unprofitable for the bank, because it is necessary to check the integrity of the candidate. If the application is approved, the encumbrances from the previous borrower are removed, and the buyer becomes the debtor.

When purchasing mortgaged real estate, the list of expenses is determined by the parties independently. If the bank sets a fee for re-issuing documents for a new borrower, it must pay it.

Additional expenses

Usually the costs of registering the purchase and sale of property are borne by the acquirer, but by agreement the amount can be divided in half with the owner of the apartment.

1. You will have to pay for the services of a legal advisor or notary. A lawyer will charge up to 12 thousand rubles for preparing a package of documents. And the notary will have to pay an amount calculated depending on the price of housing (the minimum charge is 8,500 rubles, if the property costs from 5 million rubles - from 35 thousand, from 9 million rubles - 70 thousand, from 12 million rubles - from 100 thousand).
2. If you need to rent a safe deposit box, you will have to pay 1200 rubles. per month.
3. You can order from the bank. The cost is estimated from 0.1% of the total amount.
4. For the procedure for registering the transfer of ownership of housing in Rosreestr you will have to pay from 3 to 6 thousand rubles.
5. Written consent of the second spouse to the transaction, certified by a notary – 300 rubles.
6. Signing a power of attorney – 500 rubles.

If necessary, the mediator can check the purity of the procedure from a legal point of view. You will have to pay from 10 to 15 thousand rubles for the inspection.

There may be some difficulties with the sale of the home if the seller’s relatives are against it. In this case, the case is considered in court. All costs are borne by both the plaintiff and the defendant.