Are you looking for a new place to live or would you like to buy a property only for investment purposes? In any case, carefully consider the costs and options, be aware of the necessary steps, and have a good real estate expert and a lawyer who will help you achieve your goals under favorable conditions. What should you consider when buying real estate? I'll show you!

The process of buying an apartment in 9 steps

1. Think carefully about whether you are ready to buy real estate.

• Do you have the financial support for it?
• If you take out a loan, can you pay the installments?
• Buying a home is a long-term commitment: are you willing to commit yourself to a property?
• Is the timing appropriate, taking into account housing market and personal life aspects?

2.Calculate how big a house you can afford, including all additional costs.

3. Carry out a preliminary credit assessment if you are not buying property on your own.

4. Find the right real estate agent.

5. Start property hunting.

6. Make an offer for the selected property.

7. Make a contract.

8. Pay the purchase price.

9. Take possession of the purchased property.

In addition, of course, we have many other things to do - before making an offer, let's look at the title deed, check whether there are any encumbrances on the property. Let's talk to the joint representative, feel free to ask for the SZMSZ of the apartment building. Let's also calculate the renovation costs, and for a ground-floor apartment, it's worth going down to the basement and seeing what's going on underneath the apartment.

The process of buying and selling real estate

When buying real estate, it is essential to have a good lawyer with experience in real estate matters who will guide you through the sales process and draw up the sales contract.

It is important that the buyer and the seller agree on the following issues before concluding the contract:

• What is on the property sheet? Is the property free of encumbrances and liens? For this, the prospective buyer or the lawyer acting in his case must request the title deed of the property from the land registry.
• When and how will the purchase price be paid and the possession handed over?
• What exactly is included in the purchase price?
• Is the purchase made on credit, if so, what are the consequences and conditions for the sale? It is also worth discussing when and how it will be repaid if there is a loan on the property

If the owner has accepted your offer, a deposit may be issued, by paying which you, as a buyer, undertake to fulfill the purchase price by the deadline specified in the contract. If the owner were to withdraw, you will be refunded twice the amount of the deposit, but if you change your mind, this amount will be deducted. The seller can also ask for an advance in addition to the deposit, but in this case there is no penalty if you withdraw from the contract for some reason: you simply get the amount of the advance back.

You can read more useful advice about information related to the purchase contract and possible pitfalls in the blog post entitled "Process of the Apartment Purchase Contract".

Costs of property purchase

In addition to the purchase price of the property, you must definitely calculate the additional costs that may arise, which may appear in addition to moving, home furnishing expenses and any renovation costs that may arise.

Real estate sales contract lawyer's fee

When purchasing real estate, the amount of the lawyer's fee is not regulated, but usually 0.5-1% of the purchase price must be paid for the preparation of the sales contract. Although the seller can also hire a specialist, according to domestic practice, the lawyer's fee is typically borne by the buyer.

Property acquisition tax, land registry tax

The land registry fee is the procedural fee for the registration of the real estate, which in 2021 amounts to a cost of HUF 6,600 per property in the normal procedural order, in the case of an accelerated procedure, the administrative fee is HUF 10,000 higher.

In the case of real estate purchases, the property acquisition tax in 2021 is 4% of the purchase price as a rule, but if certain conditions are met, it is possible to be exempt from the tax and receive various discounts, which you can read about in my article Property acquisition tax.

The process of buying a home with a loan

If the purchase of real estate is financed with a home loan, it greatly affects the conditions of the sales contract and the deadline for possession. The costs may vary by financial institution, but you should typically calculate with the following items:

• credit assessment fee,
• loan disbursement fee,
• valuation fee,
• notary fee and
• prepayment fee.

Fees are usually informed by the total loan fee indicator (APR).

Things to do after buying a home

If the Land Registry registration recorded the change of ownership and the possession took place in accordance with the contract, make sure to prepare a record of the fact of possession, which includes the exact readings of the meters. This data will be needed to rewrite utility contracts. The last point of the real estate purchase is the notification of the change of address: if you move to the purchased property, do not forget to apply for a new address card, and notify the changed address at your workplace and at all organizations and companies where it is important to be able to catch up with you by mail.

Do you still have questions? Contact the home expert!

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