How to Bring Your A-Game When Buying A New Home

By Korollos Shalaby

In legal terms, buying a new property might seem like a simple process, but there are important aspects to consider, especially if it is a presale. Here are some things you might want to consider when you are buying a new home.

1. Essentials. You have to know the name and corporate name of the builder or developer and, where applicable, their legal representative. Try to get a feel for the reputation of the company.

2. References. Call the developer and ask that they give you references. Ideally, you can talk to customers who already inhabit the buildings. Discuss your experiences with the developer.

3. Ground conditions. Verify that is not mortgaged and inspect the land where the building will be. Verify the legal situation of the house with the Public Registry of the Property.

4. Advanced Work. If the developer is not known or has no references, it's better to not buy in presale. You may want to get another option that gives you security, though you may have to pay a higher down payment or wait a little longer for delivery, but your peace of mind is priceless.

5. The "fine print". Look over the format of the contract that you will be signing. Look into the penalties for cancelling the contract. However, it is always advisable to have a lawyer advise you.

6. Checklist. Besides the contract of sale, there must be a contract between the developer and the customer, which will detail the date of completion of construction and characteristics of it.
Make sure the contract contains:
• Square meters and floor plans. You must also specify whether the property will feature a balcony, private garden, and so on.
• Parking spaces (location and size of them).
• Finishes (closets, carpet, flooring, bathroom furniture and kitchen).
• Amenities. What are its features and delivery dates.


7. Legal details. What are the individualized property taxes that you will be paying for the house?

8. Services. Confirm that the house has adequate infrastructure to supply electricity, water, sewer, roads, a vehicular internal connection to the urban road network and other equipment works. Licenses, authorizations and permits should be by your respective consultant.

9. Ready. If a home is ready for delivery, in addition to the above, make sure that the distribution of the property measures and finishes are those agreed in the contract. Check that the furnishings, fixtures, hydraulics and gas are in perfect condition.

10. Zero debts. Check that the developer has not left debts of light or water. Request recent bills paid.

While buying a home through the presale offers a flexible and advantages, you should always exercise caution to protect your capital. Do not be dazzled by the first pretty  house shocking or a model home being shown by a good salesman. Visit several places, question and compare.

Korollos Shalaby is a nationally acknowledged mortgage expert with over 6 years experience as a loss mitigation expert and mortgage finance consultant. He has owned several companies and has been at the forefront of all lending and banking practices since 2006.