Buying an apartment under construction brings numerous advantages for future owners – enjoying a completely new and modern space, often at more favorable prices during the construction phase, as well as the possibility of a VAT refund if this is your first property.
In addition, investors often offer flexible installment payment terms, while home loans are usually approved when 80% of the building is completed, which opens up a variety of options for different buyers.
Although there is a real concern about buying a property that is not yet fully completed, these things are generally well regulated today.
How to choose a reliable investor in Serbia
In Serbia, there are currently a large number of investors investing in the construction sector, and the number of residential buildings under construction is constantly growing. That is why it is very important to have confidence in the construction company from which you plan to buy an apartment.
It is best to get a recommendation, research their business on APR or consult with an agent, if you are buying through a real estate agency, about all the details related to deadlines and previous projects that the investor has implemented.
Before signing the contract, investors should provide you with documentation, including a building permit, a certificate of its legal validity, a document on the assigned house number, as well as checking the foundation and structure of the building.
Also, they should show you a certificate of settled obligations to the state, such as the payment of the land development fee, electricity, water, postal services and sewage settlement. If you are not sure how to interpret all that documentation or what a real estate purchase agreement should look like, a good lawyer can help you with that.
The procedure of buying and registering real estate
After you have chosen the ideal property, the next step is to sign the purchase agreement. The lawyer prepares the contract, and the notary certifies it. Upon payment of the agreed amount, you will receive a confirmation of payment.
When the building is completed, it must pass a technical inspection before the investor submits a request for a use permit. This document is issued by the competent authority, and the waiting time can be from six months to two years.
However, this does not affect the legality of the object. Buyers can move in and freely use their apartments immediately after the completion of the building, either for living, issuing or resale. Although it is waiting for the official use permit before registration, the buyers already have the owner’s rights.
After receiving the use permit, the building is registered in the cadastral records. After the registration of the building, buyers of residential units can register the right of ownership in the real estate cadastre. This process is now simplified with a new system that allows investors to do the registration instead of buyers, thus eliminating the need to physically go to the cadastral office.
Steps after receiving the keys to the new apartment
When you receive the keys to your new apartment, it is important that you and the seller make a record of the condition of the property. The record should clearly state all possible defects that the seller needs to correct immediately.
After you move in, it is necessary to transfer the rights to use electricity, that is, to transfer the meter to your name. Here you need to submit your identity card, as well as a copy and the original of the sales contract.
Also, you need to register as a utility user within a day. In some cases, the investor can do this registration for you.
Finally, as a new property owner, you are required to register as a property tax payer. The application is submitted to the competent tax authority within 30 days from the signing of the sales contract. It is necessary to do this for additional real estate that you acquire, such as a garage.
Why is buying apartments under construction popular?
The advantages of buying apartments under construction are attracting more and more attention, and part of them can be attributed to the VAT refund for the first purchase of real estate.
If you are planning to buy your first apartment, you are entitled to a tax refund. Specifically, a household can receive a refund for the first 40 square meters, with an additional 15 square meters for each additional square meter beyond that.
In order to exercise this right, you must actively participate by submitting a request to the competent tax authority in the territory where the real estate is located.
If the seller is a natural person, instead of VAT, a tax on the transfer of absolute rights is paid, while the buyer can be exempted from paying this tax under the same conditions.
For these reasons alone, buying an apartment under construction can be the best solution to meet your housing needs.
Source: www.economy.rs
