Buying an apartment with a mortgage charge

Buying an apartment is an important step for any person, requiring the evaluation of numerous real estate options and their own financial opportunities. Many people have limited resources, so they are looking for objects at the lowest cost. Therefore, the purchase of an apartment with an encumbrance is often carried out, since such a property has an affordable price. This process can be implemented directly with the owner or with the involvement of a bank whose apartment is in a pledge.

The concept of encumbrance

The encumbrance is represented by a certain restriction in relation to the property, due to which the owner cannot fully dispose of the housing. Certainly, the presence of such an encumbrance is entered into the Rosreestr, therefore, information is indicated in the certificate of ownership.

The restriction is not lifted during the sale of housing, so it passes to the new owner.

Types of encumbrance

There are many types of encumbrances, and each variety has its own characteristics.

Most often, citizens need to buy an apartment with a bank burden. In this case, you need to understand the nuances of the correct acquisition and minimize the risks of losing money and real estate.

How to find out about the burden?

The purchase of any property should be accompanied by a thorough check of the legal purity of the transaction. Therefore, the buyer must use different methods to obtain information about the seller and the object itself.

You can use several methods to obtain information regarding the presence of an encumbrance. It is considered optimal to receive an extract from the USRN about a particular apartment. It contains basic housing data, as well as existing restrictions.

This data is also provided on the website of Rosreestr or State service. For this, it is important to register and log in to these resources, after which an electronic version of the statement is ordered in the right section.

What should buyers know?

Buying an apartment with a mortgage burden is a rather risky process, so every person planning such an acquisition must take into account some important points:

• since the owner of the apartment is an insolvent payer, there is a possibility that there is a double burden on housing;
• in addition, it is necessary to check whether the property has been seized, since under such conditions, after the purchase of the object, you will have to deal not only with the bank, but also with the bailiffs;
• you need to make sure that there is no open production, since if there are delays in the mortgage and significant penalties have already been charged, then the owner can sell the goods only with the assistance of the bank;
• the buyer must make sure that the funds paid by him are enough not only to repay the mortgage loan itself, but also all interest and accrued penalties, since if the loan is not repaid in the end, it will not be possible to remove the burden.

All of the above knowledge will avoid significant risks.

The advantages of such an acquisition

Buying an apartment under encumbrance has some advantages:

• the opportunity to find real estate at a reduced cost, as mortgage borrowers try to sell the property as quickly as possible in order to use these funds to repay the loan;
• if the transaction is carried out according to numerous rules and with the involvement of the bank, it will be legal and official, moreover, in the mortgage apartment there are usually no registered outsiders;
• the opportunity to apply for a mortgage, because if the buyer does not have personal savings for this purchase, then a loan can be issued for him instead of the past borrower.

In most cases, such apartments are already sold with high-quality and attractive finishes, and it is new, so you can call in housing immediately after the acquisition.

Cons of the process

Buying an apartment under an encumbered mortgage has not only positive parameters, but also significant disadvantages:

• high risks of other problems with real estate, so the buyer may lose this property immediately after purchase;
• the duration of the procedure, since it is required to interact with the bank, receive information about the purity of the transaction, attract a notary public and carry out various actions at Rosreestr and the bank;
• the possibility that the seller will turn out to be a scammer, and when using various illegal schemes, can deprive a person of property and money.

Therefore, the purchase of an apartment with an encumbrance is made by people quite rarely. This applies even to objects for which a really low price is set.

The risks

There are certain risks of buying an apartment with a mortgage burden. It is due to them that such a scheme is considered not too attractive. All risks must be foreseen by the buyer so that there is an opportunity to minimize them.

The risks of buying an apartment with a charge are as follows:

• the owner can sell real estate without first obtaining permission for this process from the bank, and he does not have the necessary rights to it. Therefore, it is important to ensure that there is agreement on the part of the institution;
• the presence of double encumbrance is a fairly common problem, since people who do not have a good financial condition often use the same real estate when processing various transactions. Therefore, it is important to carefully study the information contained in the Rosreestr so that there is no situation in which you can lose the purchased object;
• often, sellers require an advance payment, on the basis of which the loan will be repaid, but after receiving the money the money is not used for its intended purpose, therefore, difficulties arise with the further implementation of the transaction;
• a significant risk is that the seller may be a fraudster who uses various illegal schemes to deceive citizens;
• it is dangerous to make a transaction in which the buyer repays the remainder of the debt in the bank on the seller’s mortgage, as he may simply refuse to further sign the contract of sale. And this can be avoided by forming and signing a preliminary agreement.

To prevent a situation in which a person may lose their funds, it is recommended to use a bank cell to pay for the acquired property.

Home Acquisition Procedure

If you plan to purchase an apartment with a burden on the bank, you should understand the basic rules of this procedure.

To prevent a possible loss of money, the correct sequence of actions on the part of the buyer is taken into account:

• initially, a suitable property is selected, for which the citizen is guided by his abilities and wishes;
• Next, you need to make sure the legality of the transaction, for which it is checked whether the bank has been notified of the sale of the object, as well as all the nuances are discussed directly with this organization;
• the citizen must check whether the transaction is legally clean, therefore an extract from the USRN is requested, and it is also necessary to verify that there are no debts for utility services or major repairs;
• you need to get an extract from the house book to check if minors are registered in real estate;
• an apartment purchase contract with encumbrance is formed and studied, and it is advisable to sign it only in the presence of a bank employee;
• money is transferred using bank cells, and the amount necessary to pay off the mortgage with interest and penalties is put in one, and the money transferred to the seller is sent to the second;
• after the conclusion of the contract, the money from the cells is sent to the bank and the former owner of the object;
• Further, the burden is removed from the apartment, and it is drawn up by the buyer.

Using the above sequential steps, fraudulent schemes by the seller can be prevented.

The subtleties of the process

Buying an apartment encumbered by Sberbank or some other banking institution is a complex and lengthy procedure. To prevent various negative consequences, it is recommended to take into account the nuances:

• the mortgage does not pass from one person to another, therefore the main purpose of this process is repayment of the loan by the buyer;
• necessarily need the participation of bank employees;
• collateral objects are sold for a long time, so usually buyers can count on a really low cost, but do not forget about additional checks;
• there will be low risks if the seller himself can repay the loan by his own means, after which he will sell the object, but in this case a preliminary contract should be drawn up.

Thus, taking into account all the intricacies of the process, each person can become the owner of a quality object at the best price.

Can risks be avoided?

To prevent risks, different points are taken into account. It is important that in the process of selling such an object involved the employees of a banking institution, in which the mortgage for the purchase of this property was initially issued.

In addition, you need to pay a lot of attention to a comprehensive verification of the purity of the transaction. It is considered optimal to contact qualified lawyers who will take up this process themselves.

Money should be provided only with the help of a bank cell, and not transferred personally to the hands of the seller.

How is the burden removed?

As soon as the purchase of an apartment with an encumbrance is completed, the restriction can be removed. This is possible only after the loan is fully repaid. To do this, you need to take a mortgage and a certificate from the bank, which contains information about closing the mortgage.

Next, you need to come to the Rosreestr to enter the necessary information and re-register the apartment. A new certificate is issued within 30 days.

Is it possible to count on a deduction?

When buying any property, each taxpayer can receive a refund. The deduction when buying an apartment with an encumbrance is carried out in the same way as when acquiring any other similar object.

A refund is assigned both when making only personal savings, and using borrowed bank funds. For this, it is important that the buyer himself be an officially working person or individual entrepreneur, paying personal income tax for himself.The amount of the deduction depends on the value of the purchased object, but the maximum can be returned 260 thousand rubles.

Below is a video with realtor's advice on the correct purchase of a mortgage apartment.

Finally

Thus, it is allowed to purchase apartments, which are encumbered by banks. Mortgage housing is sold at a low price, and there are many other advantages of such a deal. At the same time, buyers have to face various risks and difficulties. To prevent them, it is important to strictly follow the correct sequence of actions, as well as take into account the subtleties and nuances of the procedure.

The need for the participation of bank employees is taken into account. If the owner of the property does not warn the bank of the decision, then this is an illegal transaction that may be terminated by the court. Each buyer must ensure that the transaction is legally clean, so it is considered optimal to use the help of professional lawyers.