Homes sold in the project phase can be more advantageous for buyers due to lower prices than turnkey ones, but they also bring a number of risks.
Homes sold in the project phase can be more advantageous for buyers because of the prices
The scandal of the last period, related to the real estate developer Nordis Management, led the legislators to consider changing the legislation in the Parliament, so that the developers could not request an advance of more than 10% from the buyer.
However, excluding this aspect related to the advance charged to the buyer, there are still a number of legal elements that must be thoroughly checked before deciding to take the home, in order not to find yourself in a situation where you have paid for something that does not exist.
Thus, first of all you should find out who is the developer who made the project and who is the builder who helps him to make it. You can find out details about them not only from the press, but also from the dedicated forums, or you can go talk to the tenants of other buildings that he has built, if they exist, and find out “in the heat” what are the pluses and the minuses.
From the point of view of the documents, since it is about large amounts that usually require a credit agreement, you can even ask the developer to show them to you. The most important document in the project phase is the building permit, because, especially in Bucharest, they are quite difficult to obtain. Utility notices are equally important, because there have been numerous situations where buildings have been built, people have moved and they have been without water or gas for months.
Other information that can help you make a decision is related to the financial situation of the developer and the debts that he has. Such information is public and you can obtain it from the website of the Ministry of Finance or from ONRC. And the developer’s total debt situation can be found out from these sources.
The seriousness of the developer can also be checked on the portal of the courts, there are extremely numerous situations in which tenants or those who have concluded contracts with him sue the developer to recover their damages.
Last but not least, it is very important to obtain the land registry certificate, a document from which you can see whether or not the land on which you are building is part of a litigium, if it is free of encumbrances so that you can build on it, or if the owner of extracted is the same as the developer.
The information extract regarding the land register can be obtained by any person from the National Agency for Cadastre and Real Estate Publicity (ANCPI) and includes information about the location of the property, the area, the address, owners, mortgages, seizures, litigation, etc.
