Additional costs when buying or selling real estate can significantly increase overall costs, regardless of whether you are selling or buying real estate. If you close a real estate transaction, you should be able to accurately assess your costs. You can estimate the cost of some services in a comparative way, having learned the prices of real estate companies, or you can resort to the services of an intermediary or broker. You can also take responsibility for some additional costs. The calculation of the additional costs that take place in the event of a real estate transaction can help you determine the real value of the process itself.
Method 1: bank cell / safe / vault
The safest type of cash payment when buying and selling real estate is transferring money through a safe deposit box. This is a metal box for material assets and securities, which is in the bank's depository depository under guard. The essence of the method: the owner of the apartment, the buyer and the representative of the credit institution enter into an agreement according to which the money for the sold apartment is transferred through the cell. The document spells out the conditions, terms for receiving funds and access to them.
After putting the money in the cell, the buyer and seller draw up the contract of sale of the apartment, register it with Rosreestr. Then the former homeowner with his copy of the document turns to the bank. Employees of the credit organization in which the money is located, check the documents, and if everything is in order, give him access to the cell. The key to it is stored either at the acquirer or at the credit institution, as agreed by the parties.
For the transaction, the bank provides a secure room with a machine for money conversion and a currency detector.
Pros of using safe deposit boxes:
- The Bank acts as a guarantor of the fulfillment of obligations of each of the parties. Even with the failure of the transaction, the funds will remain intact.
- The relationship between the buyer and the seller is protected by civil law governing the storage of material assets (Article 922 of the Civil Code of the Russian Federation).
- Money is recounted and verified for authenticity in the presence of a bank employee.
- The seller will not be able to seize the buyer’s funds without presenting the original registered contract for the transaction.
Cons of calculation through safe boxes:
- Not all banks offer safe deposit boxes for rent. Therefore, before setting the date of the transaction of purchase and sale of an apartment, you need to find out which credit organizations and on what conditions provide such a service.
- Renting a bank cell will cost money. Write down in the contract with the credit institution and the buyer / seller who will pay for this service.
- If the bank with the money is revoked, the license will be returned, but the proceedings will lead to a delay and possibly disruption of the transaction.
Even in the event of a bankruptcy of a credit institution, the money in the cell will not be affected - in full it will be possible to transfer it to any alternative institution for storage and conduct a transaction through it.
The essence of the method
Participants in the transaction open demand accounts (in rubles or foreign currency). The buyer rents a safe deposit box, prescribing the conditions for access to it in the contract with the bank, deposits funds into his account and buys a bill of exchange for them from the seller. Then, the acquirer, in the presence of a realtor / lawyer and seller, places the security in the cell. After registration of ownership of the purchased apartment, the parties sign an act on the transfer of the safe key to the former owner of the property. Then the seller, in the presence of the buyer and the curator of the transaction, presenting documents on its completion and registration, takes out a security, redeems it, and on the same day receives money in its account.
The buyer and the seller can remove the bill from the cell together or individually, but only in the presence of the curator of the transaction - a lawyer or realtor.
Advantages of settlements with bills through bank cells:
- The reliability of the transaction is guaranteed by law, the bank and the invited curator (realtor or lawyer).
- Settlements can be divided into several amounts with any number of bills.
- Both parties are insured against fraud with banknotes.
- The bill has several levels of protection - counterfeiting is almost impossible.
- You can cash a security at any convenient time.
Cons of using bills:
- The services of a lawyer or realtor who will oversee the transaction, as well as renting a bank cell, are paid.
- If the bill is foreign exchange, 1% of the tax is charged from the client when cashing in foreign banknotes. And if the amount for which the security is executed exceeds $ 10,000, the bank must inform the tax office about this.
In the event of a transaction failure, the buyer can withdraw his funds by paying off the bill, but only in the presence of a representative of the legal department of the bank and with his written permission.
Method 2: Letter of Credit
Using letters of credit is a form of cashless payment. This is the second most reliable way to conduct the financial part of real estate transactions. Letter of credit (blocked personal account) - a monetary order document from the buyer, according to which the bank undertakes to pay the seller the required amount in a non-cash format. The funds are frozen for the agreed period. After signing the agreement with the bank, the seller and the buyer draw up and register an agreement on the change of ownership of the acquired apartment.
This is an alternative to using a safe deposit box, instead of which a letter of credit is used (it is opened by the buyer). The seller gets access to the funds, as with the previous method of payment, only after providing documents that the ownership of the apartment passed to the acquirer of real estate. The authority to transfer money is transferred to the bank.
Advantages of settlements through letters of credit:
- The relations of the parties to the transaction are regulated by law, additional protection - bank guarantees.
- The buyer does not risk being left without money and without housing, as is the case with payments through a bank cell.
- The seller receives the amount due to him a few days after the registration of the contract of sale of the apartment.
Method 3: Bank Transfer
Bank transfer - transferring funds to a card is a less secure way to conduct real estate transactions than the previous options described. The question immediately arises, what is first: payment or renewal of ownership of an apartment? Without notarial support, one of the parties may be left with nothing: the buyer - give money and not get housing, and the seller - "give" the apartment without receiving a fee.
What are the lawyers advising the buyer to do:
- to draw up documents for registration of a transaction in Rosreestr, including an unsigned contract for the sale of real estate,
- draw up a receipt on the transfer of money, which must be kept by the seller,
- to go to the bank with a package of securities and transfer funds in the presence of the seller,
- receive from the seller a signed receipt on receipt of money,
- register in Rosreestr the contract of sale of the apartment.
For non-cash payments, do not transfer money to the seller and do not formalize the ownership of the buyer on parole, it is safest to attract a notary public as a curator.
Advantages of transferring to a card in real estate transactions:
- Money is transferred by the bank, which reduces the likelihood of fraud at the stage of transferring funds.
- The accounts of the seller and the buyer can be issued both in one credit institution, and in different (this is especially important for those who purchase housing in another city).
- If both parties to the transaction use the services of one bank, this will save on commissions and reduce the time of transferring funds.
Cons of transfers to the card:
- The burden of risks falls mainly on the buyer - after paying for the apartment, it may be difficult to register ownership. It will be possible to return your money if an dishonest seller comes across only through the court.
- Part of the amount will be “eaten up” by interest when transferring funds.
- With cashless payments, payment is possible only in national currency.
Life hack: the buyer can protect himself by stocking up with another copy of the contract for the sale of an apartment. In case of problems, this paper (together with a receipt on the transfer of money) will serve as the basis for going to court, even if its registration is not completed for any reason.
Method 4: pay in cash from hand to hand
This is the most understandable, but also the most dangerous type of calculation when concluding real estate transactions. If you make the payment before signing the contract on changing the owner of the apartment, the buyer risks being left without money and housing. If funds are transferred after the execution of this document, the seller may remain without remuneration and real estate.
The correct cash payment procedure
The calculation of money from hand to hand should be carried out after signing the contract for the sale of housing, but before it is notarized. In this case, the buyer will not be able to cheat - without the signature of a lawyer, the paper is not valid, the rights to the apartment will still belong to the seller. After the transfer of funds, the document is certified by a notary - the property is officially transferred to the buyer. But here the buyer is at risk. To protect your rights, invite a witness to the transaction as a curator - a lawyer or a realtor - and have a copy of the contract with the seller’s signature or take a receipt from him to receive money.
You can check the notes for authenticity in the notary's office, in which you certify the contract of sale (most of these organizations have banknote detectors).
Cons of calculating money from hand to hand:
- High probability of fraud with fake banknotes, especially if the transaction is not in the national currency.
- When checking banknotes for authenticity on their own, there is no guarantee that the bill detector is in good working order. And when assigning this mission to the bank, one of the parties incurs additional costs.
- If the buyer stores the funds on the card, immediately withdrawing the entire amount necessary for the transaction will be problematic due to the limits set by banks for withdrawing funds.
- The possibility of robbery of the buyer on the way to the meeting place or robbery of the seller after the transaction.
- The probability of miscalculation.
The transfer of money in the presence of a notary, who on site will assure the receipt of funds, will help to reduce risks in cash.
Safety comes first
When buying or selling an apartment, use reliable methods of calculation, do not take risks. The choice of payment through the bank will help to avoid stress and loss of money. If you plan to complete a purchase and sale transaction for an apartment in St. Petersburg and its environs and are looking for the best option for payment, please contact our sales department - we will prompt you and advise you on the best payment method in your situation. And if you are still in search of high-quality comfortable housing, our database of new buildings with convenient filtering by categories will help you find an apartment to your liking:
What are the costs associated with the sale of the apartment to the seller (mandatory costs)
Mandatory expenses are state duties and taxes, they must be paid.
Government duty - This payment for public services and notary services, if he certifies the transaction.
-What state service does the state registration agency - Rosreestr, a real estate seller apply to?
-The seller declares the registration of the transfer of ownership from him to the buyer.
Registration of the transfer of rights from seller to buyer is carried out is free, that is, without paying a state fee.
But, in some cases, before the procedure for transferring the right from the seller to the buyer, it is required to amend the USRN (Unified State Register of Real Estate) in connection with the change in the personal data of the seller.
- the name of the seller has changed in connection with marriage
- changed the name, patronymic, last name of the seller due to other legal circumstances
The state duty for making such changes to the USRN is - 300.0 rubles (may be changed on the basis of amendments to the Tax Code of the Russian Federation) and is submitted to Rosreestr together with a document confirming such changes. You can make changes to the USR before the transaction. Changes are made at the request of the copyright holder.
You can submit these documents - together with the application for registration of transfer of ownership of the buyer.
The state duty for certification of the contract of sale is calculated by the formula: 0.5% of the contract price ( or 70% of the cadastral value - if it is more than the price in the contract), but not less than 300 rubles and not more than 20 000.0 rubles.
But not every transaction is subject to mandatory certification by a notary.
The cost of selling an apartment for personal income tax
Mandatory expenses for the sale of an apartment are expenses related to the payment of personal income tax (PIT).
This income is calculated at the end of the calendar year, and is payable in the first half of the next year.
These costs are not for all sellers.
The deduction amount for the sale of the apartment and income minus the cost of selling an apartment read in detail in the article:
Additional costs you can avoid
Additional transaction costs may be your payment for the services of lawyers and realtors. Which, however, can be reduced to zero by reading 20-30 articles on this site.
Very often, sellers carry out pre-sale cosmetic repairs in the apartment.
I dare to assure you - these costs never beat off during the sale, that is, they do not increase the market value of the apartment.
It is quite enough to get rid of littering furniture and old interior items and clean all windows cleanly.
Additional costs when buying a home - do not increase the base for calculating income tax return.
Additional costs for the sale - do not reduce sales taxes.
Always happy to clarify. Author
Greetings from the author and founder of the site
I am glad to welcome you to my copyrighted site, "Real Estate Transactions in Russia."
My name is Slobodchikova Olga Dmitrievna. Since 2006, I have been involved in the maintenance of complex and very complex real estate transactions and am glad to share my experience and knowledge with you.
I oversaw over 1000 transactions, in 250 of which, I went all the way with the client until the registration of the property right “hand in hand”.
None of my transactions have been challenged.
In only one transaction did my client lose the deposit, only because he himself postponed the purchase for a longer period due to family circumstances. But of course I was warned about the irrevocability of the deposit, until the signing of the agreement and the transfer of money.
This site contains 335 of my articles, of which you will find answers to key questions about real estate transactions and registration of property rights in accordance with the latest changes in laws and procedures.
All my design recommendations are verified by the experience of successful transactions and are aimed at preventing errors and financial losses. Follow the "step by step".
The materials on the site comply with the requirements of Federal Law-218 “On State Registration of Real Estate” as amended on 05/01/2019.
The site has been operating since 2015.
He has already been visited by more 3 300 000 people, each of whom received the latest information on the correct execution of a real estate transaction, and almost half of the visitors returned to the site several times. This is a very high appreciation of my work.
Livelnternet's attendance informer is at the bottom of the page and you can see how many people are on the site at the same time.
The materials of these projects have been repeatedly tested on experience and can serve you as a reliable source of relevant information, as well as practical tools for self-documenting the transaction.
Be sure to go to the main page of the site - there are important articles with the latest changes.
I wish everyone a successful deal. Get proven knowledge and do not doubt your strength.
Email: [email protected]