Urgent redemption of apartments — features of the process and subtle aspects

Urgent purchase of apartments in Moscow or in any other city, also known as the procedure express real estate redemptionis a process by which property owners sell their home for cash in a short period of time. This procedure is often used in situations where money needs to be raised quickly or when a traditional sale would take too long.

Urgent redemption of an apartment — algorithm of actions

Here’s how the process typically goes:

Evaluation and price offer

• redemption request: apartment owners contact specialized companies or investors who deal with urgent redemption of real estate.
• Apartment appraisal: A company or investor will appraise an apartment to determine its market value. This appraisal may include a property inspection, document review, and market analysis.
• price offer: based on the assessment, the owners of the apartment are offered a price. Usually this price is lower than the market price, since there are elements of urgency and risk in an urgent buyout.
• Acceptance of the offer: If the owners agree with the offered price, they confirm their acceptance.

Registration of the transaction

• document preparation: all necessary documents for the transaction are prepared, including the purchase and sale agreement, title deeds and other legal papers.
• transaction execution: the transaction is completed in the shortest possible time, sometimes within a few days. Usually the buyer bears all the costs associated with the execution of the transaction and checking the legal purity of the property.

Receiving the money

• payment: after all formalities are completed and documents are signed, the buyer pays the agreed amount of money. This can be in cash, to a bank account or in any other convenient way.
• transfer of the apartment: after receiving the money, the apartment is transferred to the buyer and the process is considered complete.

Reasons for urgent redemption

• Urgent need to get money: In cases of financial crisis, need to pay off debts or urgent move.
• Challenges with traditional selling: When the property has problems with the paperwork, is in need of repair, or is in an unfavorable location.
• Simplifying the process: An urgent purchase often eliminates the need to deal with repairs, preparing the apartment for showings, conducting negotiations and other processes associated with a traditional sale.

Advantages and disadvantages

Advantages:

• get money fast.
• minimal effort on the part of the seller.
• simplification of the sales process (no need to wait for buyers, make repairs, etc.).

Flaws:

• the selling price may be significantly below the market price.
• less room for price negotiations.
• the need to make a quick decision.

It is important to consider

Before agreeing to a quick buyout, it is important to carefully study the offers, check the reputation of the company or investor, and make sure that all legal aspects of the transaction are taken into account. This will help to avoid possible risks and misunderstandings.

Legal check of the apartment before purchase

A legal due diligence of an apartment is an important step in the process of urgent real estate redemption. This step helps to ensure that the transaction will be safe and legal. Here is what a legal due diligence of an apartment includes:

Checking the ownership

• Title deeds: make sure that the seller is actually the owner of the apartment and has the right to sell it. Check documents such as a certificate of title or an extract from the Unified State Register of Real Estate (USRRE).
• Encumbrances: Check if the apartment has any encumbrances such as a lien, seizure, foreclosure or other legal restrictions.

Checking the history of an apartment

• Ownership transfer history: Make sure there are no doubts about the legality of the transfer of ownership. Checking the history can reveal possible disputes or illegal transactions.
• Debt check: Check to see if there are any debts associated with the apartment, such as utility bills, property taxes, or other obligations.

Checking legal documents

• sales contract: check that the contract is drawn up correctly and complies with the law. It must contain all the necessary details and terms of the transaction.
• Seller’s Identity Documents: Make sure that the seller has all the necessary identity documents, as well as documents confirming his right to sell the apartment.

Checking the compliance of the layout

• compliance with design documentation: check that the actual layout of the apartment complies with the design documentation and building permits.
• illegal redevelopment: make sure that there have been no illegal redevelopments in the apartment that could cause problems during further use or sale.

Checking the legal status of an object

• whether the property is registered: make sure that the apartment is registered in the relevant registries and that all registration data is up to date.
• status of property rights: check if there are any litigations related to the apartment and if there are any risky situations that could affect the transaction.

Checking rights and restrictions

• Right of Use: Make sure there are no restrictions on the use of the apartment, such as third party rights, tenants or other encumbrances.
• permission to sell: make sure that the sale of the apartment is permitted, especially if it is owned by a legal entity or is part of an inherited estate.

The Role of a Legal Advisor

• Hire a lawyer: It is recommended to hire a lawyer or notary to conduct the audit and draft the contracts. A professional will be able to identify possible risks and help avoid legal problems.
• consultations: a lawyer can advise on all legal aspects of the transaction and help with the preparation and verification of documents.

Experts emphasize: legal verification of the apartment before buying helps to avoid many potential problems and ensures that the urgent purchase of an apartment will be legal and safe. This stage is especially important to protect your rights and interests in the process of selling real estate.

Urgent purchase of an apartment — who to offer it to