What to Watch Out for When Buying Property – Common Mistakes and Legal Pitfalls

Buying real estate is one of the biggest financial decisions in life. At first glance, the process may seem simple: agree on the price with the seller, sign the contract, and take possession of the property. However, numerous legal and financial pitfalls can arise, making careful attention essential for a safe transaction.

1. Checking Ownership

A common mistake is failing to thoroughly check the property’s ownership details. It’s important to verify:

Who the legal owner is; are there multiple owners?

Whether there are mortgages, liens, or ongoing legal disputes on the property.

If there are pre-emptive rights or other usage restrictions.

Lack of knowledge in these areas can lead to serious legal issues later, such as having to settle an existing mortgage or dealing with enforced pre-emptive rights.

2. Contract Terms

Before signing the sales contract, all terms should be carefully reviewed. Common mistakes include:

Unclear arrangements for the payment of the purchase price.

No defined date for taking possession of the property.

No clear provisions for defects or missing documentation.

A well-drafted contract protects the interests of all parties and prevents misunderstandings.

3. Technical Condition and Documentation

Assessing the technical condition of the property is crucial. Recommended steps:

Check building permits and occupancy certificates.

Inspect electrical, plumbing, and heating systems.

Consider hiring an architect or technical expert to identify potential issues.

4. Costs and Taxes

When buying property, you need to consider not only the purchase price but also additional costs:

Fees, lawyer’s charges, notary costs.

Registration fees, potential costs related to taking out a mortgage.

Estimating these costs in advance helps avoid financial surprises.

5. Legal Representation

Many buyers assume that the real estate agent or bank is sufficient, but legal representation is essential:

A lawyer reviews the property title, contract, and any encumbrances.

Legal counsel ensures the transaction is carried out lawfully and securely.

Conclusion

Due diligence and professional advice are key when buying real estate. Checking ownership, carefully drafting the contract, evaluating the technical condition, and securing legal representation are all critical steps for a safe purchase. Avoiding common mistakes minimizes risk and ensures that buying a property is a positive and secure experience.