Buying a property? We recommend that you check certain information about the property before you buy it and do not rely solely on the information provided by the property owner or estate agent, which may not be complete or true.
Real estate cadastre and zoning plan
The first step in purchasing a property is to thoroughly check the legal status of the property in question in the Land Registry – in particular, whether there are any easements, liens or leases on the property. In the case of a land purchase, it is also advisable to check the current version of the municipality’s zoning plan (or a draft amendment or a draft of a new zoning plan, if published), from which it is possible to see what building plans can be placed on the land and how neighbouring land or the wider area around the land in question is defined. By looking at the zoning plan, it is possible to find out whether a new industrial area will be created in the vicinity of the purchased land, for example, or whether the zoning plan envisages, for example, the construction of a new higher-class road in the vicinity of the land.
Seller’s indebtedness
It is also advisable to check whether insolvency proceedings have been initiated against the seller or whether enforcement proceedings are pending. If there is any doubt as to whether the seller is debt-free, confirmation from the relevant government authorities, including confirmation from the local court, can be sought as to whether any proceedings have been initiated against the seller to recover the amount owed. At the same time, it is advisable to check whether the property tax has been duly paid in the past and whether, in the case of the purchase of a residential unit, the seller has any arrears towards the repair fund or services related to the use of the apartment. In this context, we recommend asking the seller to submit a certificate from the property manager stating that the property is debt-free and to ascertain the management status of the HOA, in particular whether the HOA is in debt.
Particulars of the contract of sale
It is advisable to obtain all this information before concluding the reservation agreement or the future purchase agreement, but at the latest before signing the actual purchase agreement under which the ownership of the property is transferred. In connection with the above, we recommend that the terms and conditions of the purchase (and possibly also the reservation) contract be set correctly so that it is possible to withdraw from the contract if it is found that there is a legal defect in the property, that the seller has provided incorrect information to the buyer or that the seller has not sufficiently informed the buyer about the condition of the property.
We recommend not to be persuaded by the seller or real estate agent to sign the contract quickly, but instead to take the time to properly prepare all the documentation. We can help you with a complete inspection of the property before buying it and with setting the terms of the reservation and purchase contract.
If you would like more information in this regard, please do not hesitate to contact us.
This article is for informational purposes only and does not constitute legal advice or guidance for any particular case.