Recommendations for purchase of apartments

Every purchase apartments for most people is also one of the happiest, but also one of the most stressful life events. At a price that is often equal or exceed the amount of life savings of the entire family, often with debt, people are trying to solve one of the biggest issues - the housing issue.

As often happens in life, there are no simple solutions for the important and big decisions. Therefore, the first and last well-intentioned advice to each customer dwelling, or any property, is caution, and again beware! Do not let anyone deceive unrealistic promises, and the price of dwelling below market may turn out to be unrealistic promises. Do not save the time and attention, inform yourself well, all you can, and you lot, check, looking for all the important data and consult with experts in law and real estate transactions, because you no one can protect well enough, if we do not take measures for their protection.

To purchase a dwelling or other property under construction is useful to be familiar with the following facts:

- Every investor, typically a company, its business is registered with the appropriate government agencies. And every company can to some extent be checked by official data, available to everyone. Take advantage of these opportunities, particularly as to find this information easily and quickly. One of the first steps might be checking whether the investor is generally added to the Register of Companies, for which the business is registered, and that his registration number. The above information can be found on the website of the Business Registers Agency of the Republic of Serbia: www.apr.gov.rs. In the same place you can find annual financial reports to investors and find out all the other data that is entered in the register of companies.

- The current state of the investor's account, in the sense that it is involved in the turnover or is blocked, you can check the website of the National Bank of Serbia, www.nbs.rs, on the "Search single registry account. To do this you need a personal identification number of investors who have obtained on the website of the Agency for Business Registers.

- Then, further verification of the investor can be made through the Bureau of solvency, registry, verification and issue of Serbian Chamber of Commerce. Bureau of solvency is in Resavska Street 13-15, +381 11 3300 900, local 135 and 960, and for theissuance of of data a fee ,whose amount depends on the volume of data you are looking for , and the time frame in which you want to your information has been submitted.

- Checking cadastral parcel on which the facility is built can be accessed in the land register or cadastre. On that occasion, it is important to determine whether the investor is registered as the right to use or lease the subject land, and the reason is that the complete construction documents shall be registered persons registered in the Land Registry or Cadastre. If you have already given authorization to build the name of the previous holder of the land, then the investor can build on the same land if a contract of co-investments, according to which the investor invests, and the owner or user of land is making his tenure. The exact nature of the relationship of that person who is registered as the right to use the land, and investors will learn the insights into an agreement on co-investments that have closed. What is necessary for each approved building is resolved Property Rights on the land, which means that a clear link between the formal legal status in the cadastre or land register, and the rights of investors.

- After that, it is necessary to check for a binding decision to issue permits for construction (building permit under the new law on planning and construction in September 2009. and amendments to this law, hereinafter referred to after the name of the document will be listed in brackets document name most closely under the new law) of the same unit, where only submitted the application for the approval (building permit) is not, nor can it be evidence that only the approval (building permit) be issued. Approval for construction (building permit) is issued on behalf of investors. Issuance of construction (building permits) buildings gross floor area exceeding 800 m2 in the jurisdiction of the City of Belgrade, in particular the Secretariat for Urban Planning and Construction, while the approval for the construction of gross floor area less than 800 m2 in the jurisdiction of the urban municipality in whose territory the facility located. Secretariat for Urban Planning and Construction of Belgrade is located at 27th of March 43-45, telephone switchboard is +381 11 3227 241, while Info Service, which operates from 08.30 to 16.30 hours, using phone + 381 11 3229 000 fax +381 11 3344-633. To Novi Sad city administration is responsible for urban planning and housing, in the street. Radnička 2, tel. +381 21422644 www.novisad.rs/sh/content/gradska-uprava-za-urbanizam-i-stambene-poslove.

- Then you need to check if the investor entered into a contract with the Directorate of Land Development Agency, which regulates compensation for land usage, as well as whether to pay its liabilities on that basis. It is a prerequisite in order to obtain a use permit, and for subsequent registration of property. Meanwhile, in the same place it is possible to get information on previous contracts of the same performers, the number of buildings that has until now built, but whether regularly meet obligations under the Directorate of Land and building. From all possible, even approximate, to conclude whether the investor a solid builder. Belgrade Land Development Agency is located at Njegoseva No. 84, phone: +381 11 244 1994 94th To Novi Sad to the PE for the construction of the street. Stevan Branovackog no. 3, tel. +381 21 4889 100 and +381 21 4889 101, e-mail office@zigns.rs and web www.zigns.rs.

- Additional information about the investor, the objects that had previously built on quality work, meeting deadlines, and the like, you can get a tour of the building, and talk to previous buyers of apartments under construction.

After examining the building permit for construction (building permit) the facility can be tested with data on building construction is approved (allowed), data on the existing house which was ruined in order to build the facility for which the construction of an authorization (license); documentation upon which it was issued approval for construction (building permits); documentation that needs to be prepared before the construction of the facility; validity period for the construction (building permits) and other data relevant to the construction.

An integral part of the approval for the construction are the preliminary design and an excerpt from the urban plan (under the new law, part of a building permit is a major project, and the procedure is simplified because not require the preliminary design), or act on urban conditions (under the new law, this Act is contained in the location permit). Conceptual design is a project to determine the purpose, position, shape, capacity, technical and functional characteristics of the structure, elements of organizational structure and appearance of the building. Preliminary design includes, in particular: Site plan, drawings that define the object in space (the basics, typical sections, layouts); purpose facility, technical description of the planned investment value of the object.

It is important to be aware that approval for construction (building permits) shall cease to have effect if it fails to commence construction of a structure within two years from the day of approval.

If during the construction of the building the investor wants to withdraw from the documentation upon which the approval was granted for the construction (building permits), or from the main project, in terms of deviation from the position, size, purpose and shape of the object, it is necessary to obtain approval for the construction of (building permit) according to the changed records, or to amend the main project with the confirmation of the competent authority of its receipt. In practice, it often happens that investors build a larger facility than the one who are approved for construction (building permit).

Necessary to check whether the investor entered into a contract and pay off obligations to the public company for shelter, as well as the electrical utility, water supply and PTT in.

After the decision on approval for construction (building permit) necessary to obtain a certificate of works (under the new law, after the building permit is only required to report the commencement of works to the competent institution), if it is a facility for which construction approval issued by the city municipality, or receipt of documents (under the new law, after the building permit, it is only necessary to report the commencement of works to the competent institution), if it is a facility for which construction approval issued by the City of Belgrade. An investor can begin work only after obtaining the said documents (after application, operations under the new law).

It is necessary that the investor during the construction of the building, provide technical supervision, which includes control of whether the construction is done in accordance with approval for construction (building permit), and the main project, then check the quality of works and implementation of regulations, standards and technical norms and number of other issues relevant to construction.

Upon completion, or during construction of the facility, conducted a technical review to determine eligibility for use of the facility. A technical inspection controlled alignment of the work done with the approval for construction (building permit) and the technical documentation, as well as technical regulations and standards.

Technical inspection of the facility for which the permit for construction (building permit) issued by the city or municipal government, perform a committee formed by the government or business entity that is entrusted to carry out these works, which is registered in the appropriate register.

Technical review provided the investor, and bear all his expenses.

It is important to know that they can not perform the technical inspection of the facility or part thereof, or authorize the use, if the structure or part of the building, built without any permits for construction (building permits) and without the main project.

When it is determined that the facility is fit for service use permit is issued. The facility can be used only after obtaining the occupancy permit, issued by the authority responsible for issuing permits for construction (building permits), then the body of a city or local government, depending on the object surface. An integral part of the occupancy permit the warranty period for the facility or certain types of works. Without a use permit registration of the flat will not be possible.

Law on Planning and Construction provides that the facility is built, or built without a building permit and without the main project may not be connected to electricity, thermo-or telecommunications network, as well as water and sewerage.

City of Belgrade, or municipal government, perform inspection of the construction of facilities to issue permits for construction. The inspection supervision over the construction of facilities for which construction approval issued by the City of Belgrade, the Secretariat for Property Rights and Building Inspection, located at 27th of March 43-45, + 381 11 3227 -241, Info Service +381 11 3228-740, fax +381 11 3222-420. To Novi Sad it is City Administration of Inspection, in the street. Dimitrija Tucovića no. 3, tel. +381 21 4872 402, +381 21 4872 403 and +381 21 4872 404, e-mail: dispecer@inspekcija.novisad.rs, Web: www.novisad.rs/sh/content/gradska-uprava-za-inspekcijske-poslove.

Law on Planning and Construction contains a number of criminal provisions that apply in the event of a breach of the provisions of that law. To avoid that, against his will, get to know the contents of threaten sanctions, but that you protect the money intended for housing, has never and does not enter into substantive legal relationship with investors who are not approved for construction (building permit) where you sell homes, do not buy or build homes that clearly are not provided in the documentation, especially in a project that necessarily follows the approval for construction (building permit). Nobody, not even an investor who prior to the commencement of works has not obtained approval for construction (building permit), or during construction deviated from the project, can not expect any subsequent legalization.

Next it is important to know is that existing home can be bought under a contract of sale of the apartment building, and under a contract of co-investments, with the recommended conclusion of the first mentioned contract. It is also recommended that payment of the purchase price to be provided in installments, which will be related to the construction phase, ie. the degree of development of the flat.

So that later the apartment was listed in the real estate, or in the land register, it is the urban municipality or of the City of Belgrade to obtain a certificate of special parts of the building, which contains the specification of all apartments in the building. To Novi Sad it is City Administration.

Provided that is entire legal procedure previously filled, and that no obstacles to the registration of ownership in the cadastre or land register as the holder of title to the apartment will be the first registered person that follows the decision on approval for construction (building permits), then investor. After that, the real estate records can be entered homebuyers, under contract to purchase the apartment, which contains the so-called. clausulu intabulandi, ie. provision under which is seller agrees to enroll the customer as the owner of the apartment, with no need for the seller it issue a special permit.

One of the problems that you encounter as a buyer of the apartment building is that the apartment in the original project, for which the approval was granted for the construction, was designed as a flat, but as a common room (storage room, attic, laundry room, basement, etc.. ) or as a garage. Registration of such premises as a apartment would not be possible if the investor does not fulfill the previously re-appropriation of these premises, and that such premises turned to the apartment, in addition to the approval of other landlords require a certificate that is converted to comply with zoning requirements, as may be issued approval to convert these premises into the apartment. Therefore, it is necessary to bear in mind that it is risky to buy a room in the main project that was envisioned as a flat. Anyone who engages in such purchases, it must take into account that the provision of documentation for re-appropriation will require additional costs, and it may happen that the approval for change of purpose and does not receive, especially when it comes to the garage, because under current regulations, the facility in the city areas must have a certain number of parking or garage spaces. The main project is produced under the existing zoning requirements, so it is necessary to take into account the fact that a deviation from the project may represent a departure from the urban conditions, especially if there are changes in the dimensions, which is usually the case in the attic.

In practice, as a way of buying apartment in the building, most often found on the contract on joint construction and co-investments, where the person concerned in the purchase of apartment forced to participate in building the whole facility, with a certain amount of money, and the other party - the investor is obligated that the co-investor after the completion of the construction give the property a certain apartment in an agreed area, with a number of rooms, the well-established floor residential building.

It is necessary that the contract on joint construction and co-investments include a provision by which the investor commits to following the construction of the facility receives its own expense use permit as a carrier of the decision on approval for the construction, which he will ensure that the completed facility enrolled in the immovable property in his name, a requirement that the co-investor (buyer of the flat) registered as the owner bought apartment, and the specification of dwellings carried out by the municipality or city.

The risks of buying apartment building on the Agreement on joint construction and co-investments.

The contract on joint construction and co-investments means that the buyer apartment, which appears as a co-investor, some funds invest in the construction of entire building, so I bear the risk for an apartment to him under the contract must be transferred to property, and the response to third parties concluded that ordinary contract of sale of the apartment building.

It often happens that investors start to build, they do not have sufficient funds to continue construction, and resort to these agreements to provide financial resources, thereby avoiding the sole responsibility on their side.

Also, the investors, so that as many squares sold in contracts for co-investments and joint construction of entries clause waiving the right to use common areas, that would later make so. re-appropriation and convert them into apartments. These "flats" have a lower price on the market, but can not be easily booked. In addition to being an investor has to make a change of purpose, the consent of other owners of apartments to common rooms converted into an apartment, all this must be in compliance with zoning requirements. Thus, the greater the chances that these "flats" never registered under.

What also reduces the risk of the buyer - co-investor, but also the buyer of an apartment building in the sales contract, would be a contractual provision under which the builder - general contractor, or seller is not entitled to the full amount of thethe agreed price of the apartment to obtain a use permit,or provision at which the buyer retains at least 10% of the agreed price and at the end of the construction, and that retention money is paid only after the investor - the seller obtains occupancy permit.

We should not lose sight of the undoubted fact that every customer in an apartment building, was to assume the role of co-investor, or not, in fact financier, lender or builder - vendor. Therefore, the only truly reliable means of securing the money that the customer provides a bank guarantee in advance by the investor - the seller, according to a concluded contract of sale, or co-investments, giving the buyer or co-investor, in the amount of at least the first two installment payments, where would be in the contract provide that the bank guarantee to be collected - activated if the builder - the seller does not fulfill any of its contractual obligation, especially if late in the works. Bank guarantee for the performance bond, payable on first demand, unconditionally and without objection, the only means of ensuring customer provided security, at least to the amount stipulated in the warranty, because, in the case of its activation and billing, cash back bank, which is a guarantee issued, regardless of the state of the investor's account - builder or seller. This means financial security has its drawbacks - it is likely that banks would not be interested in guarantee for investors who do not have a solid rating, or that the price that the investor paid for the issuance of bank guarantee and then drove to the buyer, the price of the square, or in any other way. It is clear, therefore, unreliable, or at least affirmed builders would not be able to provide the bank issuing the guarantee, but also to builders, who would get guarantees from banks for the benefit of customers, price guarantees transfer to customers. If, therefore, an investor from whom you are considering to buy a flat can not provide a guarantee, this fact indicates that there is a place of suspicion, but that, if elected investor can provide a bank guarantee, increased security for the investment at a price.

Once again I suggest that payments under the contract for buying the apartment building, or on co-investments, are regulated in the contract so that the next war, payments shall be made only after completion of works from the previous one, which would have easily found by inspecting on site, as well as documentation of investors, where the supervisor signed and sealed confirmed that the work of the previous stage and performed. In this way, and I supervisory authority would be liable if they actually certified outstanding works, which would be in this segment of the construction impact on the professionalism and accountability of all participants. No contractual provision that would regulate such payments would not fully ensure your investment, but would you reduce the risk of eventual loss of the substantial part of the paid amount.

Housing construction undoubtedly can be purchased at significantly lower prices than those of the same sizes, which are already built and booked buildings - Safety and reliability in traffic at a price. Unfortunately, not all people from Belgrade in a position to buy when the apartment is already in the public records of real estate, when all legal issues related to traffic immovable properties is simpler and much less buying itself is uncertain. Not all builders unsound and unreliable, it just means that we should not give up on resolving your housing problem, but to purchase access responsibly towards themselves and their families - engaging professional help can turn out to be much less expense of potential loss of savings due to disorientation in regulations, the time you dedicate to all types of checks, of which we tried to imply they needed, actually is an investment in protecting your vital interests.

Source: Official presentation of the Belgrade City Administration, Web: www.beograd.rs.