Statistics show that the desire to buy real estate tops the wish list of the average person. More than 58% of the world’s population dreams of buying a house. Someone wants to move out on their own, someone plans to get into the rental business, someone – to “let go”. But whatever the reason, the choice of living space should be approached wisely and calmly.
How to formalize the purchase of an apartment?
The sale and purchase agreement is the most common document that is concluded in home purchase transactions. However, over the last year the procedure has undergone some significant changes.
Today, information resources are overflowing with recommendations on the execution of the Agreement of Purchase and Sale, but in order to conclude the deal in accordance with the legally correct framework, it is advisable to seek advice from an agency. This will help to avoid mistakes and misunderstandings at the conclusion, as well as provide legal protection of the rights of the parties.
The transaction of purchase and sale of housing in Uzbekistan is executed in accordance with the Law “On State Registration of Real Estate and Real Estate Transactions” of April 30, 1999 and the Civil Code of the Republic of Uzbekistan.
Before starting the transaction, the buyer must make sure that the object is legally clean and check if there are any encumbrances on it. For this purpose, an extract from the Unified State Real Estate Register (USRN) is obtained. If there are any encumbrances on the object, it may create problems when selling it or using it as collateral.
The following documents are required to execute a housing sale and purchase transaction:
- agreement on the sale and purchase of residential premises;
- certificate of ownership of the residential premises;
- extract from the Unified State Register of Registrars;
- passports of the seller and the buyer;
- other documents, if provided for by the legislation.
A contract for the sale and purchase of residential premises must contain the following information:
- Data about the object (address, area, number of rooms, etc.);
- The cost of housing and payment terms;
- Term of transfer of the purchased housing;
- Liability of the parties for failure to fulfill the terms of the contract.
After signing the contract, the parties are obliged to register the transaction with the state real estate registration authority. It is necessary to pay the state duty for the registration of the transaction.
It is important to note that the transaction must be notarized. Also, Uzbekistan provides for the possibility of using electronic documents during registration.
If you are not sure of your knowledge and experience in this area, it is better to seek the help of specialists – lawyers and notaries, who will help you properly formalize everything and avoid possible problems in the future.
To execute a contract in Uzbekistan, you will need the following documents:
- Passport of the Uz citizen who participates in the transaction (buyer or seller).
- Document confirming the title to the apartment or other residential premises. It can be a certificate of state registration of ownership right, a transitional document (acceptance certificate), a sale and purchase agreement, etc.
- If you are not the owner of the apartment, but want to conclude a sale and purchase agreement on behalf of the owner, you will need a power of attorney from the owner of the apartment.
- If the parties to the transaction are legal entities, in addition to the passport of the representatives of these legal entities, you will also need the constituent documents of the company, a certificate of state registration of the legal entity, an extract from the Unified State Register of Legal Entities, a power of attorney to sign the sale and purchase agreement, etc.
- A receipt for payment of the state duty for registration of the apartment sale and purchase agreement.
- Before executing the sale and purchase agreement, you may also need to obtain a certificate from the local Tax Authority confirming that you have no outstanding taxes and fees.
Procedure for real estate registration
Formalization is an important process that allows you to register ownership of an object. Let’s consider the main steps that are necessary:
Step 1: Checking the legal cleanliness of the real estate
Before starting the registration process, it is necessary to make sure that the property is legally clean. To do this, you should obtain an extract from the Unified State Register of Real Estate (USRN), which will confirm the ownership of the real estate object and the absence of any encumbrances on it.
Buying inherited real estate is one of the problematic and unpredictable transactions in the real estate market. Receiving an inheritance can be a more pleasant process than dividing that inheritance, which sometimes leads to conflicts between relatives. In addition, there is a possibility that the rightful heir may declare their rights several years after receiving the inheritance, which can lead to lengthy litigation. Therefore, we strongly recommend not buying without the help of a professional lawyer.
The second big risk is buying real estate from a mentally unhealthy seller. Often such people hide their illness and are not registered with psychiatrists. Relatives of such sellers can declare the seller incapacitated and file lawsuits to invalidate the transaction. If you have any suspicions about the seller’s adequacy, we recommend asking the seller to undergo a psychiatric evaluation.
The third risk is problems with residence registration. It is possible that the seller will not check out of the apartment you have bought within the agreed period of time. In this case, if the former owners do not want to be discharged, it may be necessary to go to court, which can take a lot of time and money. Therefore, we recommend that you insist that the seller and his/her households sign out before the transaction is notarized.
Step #2: Documentation
After obtaining an extract from the Unified State Register of Real Estate Owners, it is possible to begin preparing the necessary documents for real estate registration. It contains information on the titleholders of the object, its area, address, value and other important characteristics. Based on this information, you can start preparing all the necessary documents for registration of ownership.
But before proceeding to the execution of documents, it is recommended to carefully study all the available information in the extract from the USRN to make sure that it is complete and accurate. If you find any errors or discrepancies in the data, you should contact the relevant authorities to correct them.
Step #3: Notarization of documents
After preparing all the necessary documents, you should contact a notary, who will notarize all the documents – this is an important step in the registration process.
Step #4: Registration of ownership
Notarization of all necessary documents is a prerequisite for registration of ownership of real estate. The notary verifies that all documents are correctly filled out and executed, and also certifies the signatures of the parties, which increases the degree of protection of property rights.
After notarization of the documents, you should apply to the Rosreestr for registration of the title to the real estate object. Registration is carried out on the basis of a set of documents, including an extract from the Unified State Register of Real Estate, a contract of sale or other agreement, a notarized power of attorney and other documents required in a particular situation.
After the registration of the ownership right the corresponding document – the certificate of ownership of the real estate object – is received. This document is the main proof that you are the legal owner and have all the necessary rights to use it, dispose of it and so on.
Step #5: Obtaining a new technical passport for the real estate object
The technical passport confirms the technical characteristics of the object and is registered in accordance with the procedure established by law by the state authorities. Usually it is issued once, when it is put into operation.
Thus, if the technical passport has already been issued, you do not need to obtain it again. If, however, you feel the need to obtain a copy, you should contact the state authority.
However, once you receive the certificate of ownership, you may need to update the information in the technical passport.
In conclusion, real estate registration is a complex and important process that requires fulfillment of a number of mandatory conditions. But thanks to the correct implementation of all stages, you will be able to successfully register your title to the real estate object.
What to choose: secondary or new construction?
It seems that buying a secondary home is more reliable because the structures and utilities are proven. But if you change the angle, simple truths become clear. The service life sooner or later comes to an end even in residential buildings. Thus, the life cycle of Soviet buildings was about 75-100 years. Half of them, most buildings are obsolete. New buildings promise faithful service for 150 years or more. An excellent choice for investment strategy – enough for grandchildren and great-grandchildren. Buying square meters in a new building, the future owner gets a new living space. And with it – modern communications, the ability to choose the layout, parking and other amenities. All this is provided for by most developers.
What can a secondary real estate seller hide?
The desire to correct outdated architectural solutions is a common and very widespread phenomenon. Demolition and transfer of walls, windows, doors… But according to urban planning regulations, these actions cannot be done unauthorized. According to the law, all carried out redevelopment must be coordinated with authorized state organizations, legalized and reflected in the technical passport of the property. Otherwise, the law may force the owner of the apartment at his own expense to bring the premises to its former state and pay a considerable fine. The process of legalizing redevelopment is not so easy, so many people do not deal with this issue, leaving everything to itself. Tip – if you are going to buy an apartment with illegal redevelopment, ask the seller to provide all the technical documents in order.
Communication is faulty or not corrected
The fact is that in an apartment building, there are interruptions with heating, hot/cold water, and electricity. In order to hide these and other defects, sellers of apartments have already invented so many “efficient flyhacks” that an unsophisticated buyer will not even have a chance to recognize the real apartment. Here the advice is simple: before buying an apartment, talk to the owners of neighboring apartments (they have no reason to hide the truth from you), talk to the district police, go to the service company (HOA) and get full information about the condition of both the central communications of the building and the technical condition of this particular apartment.
Neighbors are one of the most popular reasons for selling a condo and moving. Few people will be able to live in an unfavorable neighborhood for a long time. And here, too, you can’t do without outside help: talk to your neighbors and the house committee before you buy the apartment.
Near the house is an industrial zone or a dump, in windy weather the stench spreads throughout the area, which can affect the mood and well-being of the residents of neighboring houses. Tip – don’t be lazy to take a walk and inspect the infrastructure around the property you are selling. Often such a walk can save you from a failed property sale.
What aspects should be considered when buying a new building?
In this situation it is necessary to pay attention to the following:
- Does the seller of an apartment in a new building have state registration as a business entity and has it not expired?
- Is there a decision of the khokim on granting a land plot for construction?
- Does the construction firm hold any position in construction?
- Has the design documentation been expertized by the State Unitary Enterprise “Expertise of Urban Planning Projects” under the Ministry of Construction? Construction works are carried out on the basis of this project or the expert’s conclusion?
Also, consumers should pay attention to how the contract is structured. The purchase can be made under one of the following agreements:
- Investment agreement;
- Share participation agreement in construction.
- Mortgage agreement;
- Sale and Purchase Agreement.
Before purchasing an apartment in a new building, citizens should consult a lawyer. Also, it is recommended to find answers to the following questions: whether the housing you are about to purchase is not really built on the disputed territory, whether there are the necessary legal grounds, whether there are no plans to demolish this territory in the near future, whether the person selling you the housing has such authority, whether there are no signs of fraud, what are the reviews of people who have previously purchased housing from this entity.
Today we often observe the following situation: construction has not yet started, but multi-storey buildings are already being sold and advertisements are published. Is it possible to enter into a contract to buy an apartment in such a situation? Is it allowed by the legislation? What to do if assembly has started but not completed?
According to the provisions of the Civil Code, citizens and legal entities are free to conclude contracts. The parties may also conclude agreements not stipulated by law. The terms and conditions of the contract are established at the will of the parties, unless otherwise provided for by law. For those apartments that are not ready, a contract can also be concluded on them. In this case, it is more correct to conclude a contract for participation in shares. There are no legal restrictions on these contracts. It provides for the contribution of a citizen of a certain amount to the construction and the acquisition of ownership of this apartment upon completion of construction. Thus, this contract coincides with the final content of the purchase and sale contract.
What to look out for?
The first thing to look at is all aspects of the contract. Different aspects may be important for buyers (according to their preferences). Some look only at the price, others at the terms. As a rule of thumb, all the terms of the contract should be scrutinized. Then the buyer will not be faced with a situation where any of the terms of the contract is questionable.
The key terms of the contract are the number of square meters of the apartment, the floor of the apartment, the price per square meter, the time of completion of construction, the time of registration of title documents after completion of construction. Another important aspect of the contract is the issue of responsibility of the parties. Here to some extent lies the responsibility of both the construction company and the buyer. If a dispute arises in the future, this issue will be decisive.