Another set of requirements of the bank that must be taken into account when searching for a real estate object is the requirements for the technology of the transaction. The main points in which these requirements are imposed by banks are:
Settlement of the transaction.
In this crucial moment, the requirements of banks may have significant regional differences. For example, the practice in the real estate market has been formed in such a way that settlements are carried out mainly in cash, through the depository cell of the lender bank. This is a kind of cash letter of credit, when the money is put into the cell by the buyer before the transaction, and withdrawn by the seller after the registration is completed, subject to the presentation of the registration certificate to the bank. There are practically no risks in such a system, and for all interested parties, including the bank.
In some regions, payments are made, although in cash, but often without the use of a cell. The buyer pays the seller in full on the day of signing the contract of sale. This is the tradition. And if the seller outside Moscow, who is waiting to receive funds right on the day of signing the contract, is informed the day before the transaction that the funds will be in the cell until the end of the registration of the transaction, the transaction may not take place.
The settlement scheme before the transaction contains certain risks, since the registration of rights may be suspended, and the seller has already received the money. Not all banks are ready for this, but many are still forced to adapt to the established business practices, using various methods of risk reduction, including attracting well-known real estate companies in the region as guarantors.
Oddly enough, in most cases, calculations are made in a civilized form:
Of course, a mortgage broker should be aware of the current settlement procedure in his region in general, and of the specifics of settlements applied by each of the banks operating in this region. The currency of settlements is also a very important point.
The moment of the legal release of the apartment
An important point is the presence of registered (i.e. registered) persons in the object at the time of its acquisition by the buyer-borrower. For example, a bank may refuse to lend to an object in which minors or persons under guardianship are registered. And require simultaneous execution of two transactions:
Such conditions should also be discussed by the parties in advance, at the time of making a decision on the sale of the object to the mortgage buyer.
Settlement of the transaction.
In this crucial moment, the requirements of banks may have significant regional differences. For example, the practice in the real estate market has been formed in such a way that settlements are carried out mainly in cash, through the depository cell of the lender bank. This is a kind of cash letter of credit, when the money is put into the cell by the buyer before the transaction, and withdrawn by the seller after the registration is completed, subject to the presentation of the registration certificate to the bank. There are practically no risks in such a system, and for all interested parties, including the bank.
The settlement scheme before the transaction contains certain risks, since the registration of rights may be suspended, and the seller has already received the money. Not all banks are ready for this, but many are still forced to adapt to the established business practices, using various methods of risk reduction, including attracting well-known real estate companies in the region as guarantors.
Oddly enough, in most cases, calculations are made in a civilized form:
- In the national currency, not in a foreign one.
- Through a bank, by wire transfer.
Of course, a mortgage broker should be aware of the current settlement procedure in his region in general, and of the specifics of settlements applied by each of the banks operating in this region. The currency of settlements is also a very important point.
The moment of the legal release of the apartment
An important point is the presence of registered (i.e. registered) persons in the object at the time of its acquisition by the buyer-borrower. For example, a bank may refuse to lend to an object in which minors or persons under guardianship are registered. And require simultaneous execution of two transactions:
- transactions of purchase and sale of an apartment in which these minors are registered;
- purchase transactions of the object in which they plan to live in the future.
Such conditions should also be discussed by the parties in advance, at the time of making a decision on the sale of the object to the mortgage buyer.