All costs and expenses when buying an apartment or house

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Published: 12/19/2017

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Concluding a transaction for the purchase and sale of an apartment for the buyer is fraught with large expenses, which include not only the funds spent on the purchase itself. The list of expenses includes paperwork, as well as the services of a realtor. If you purchase a home with a mortgage, costs may also increase.

• Major Buyer Expenses
• Costs when buying an apartment with a mortgage

How the transaction is carried out

Before understanding the costs imposed on the parties to the transaction, it is necessary to familiarize yourself with the features of its implementation:

1. First, the seller determines how he will sell the apartment - independently or through a realtor. Now real estate agencies “intercept” 95% of advertisements, but owners can refuse their services. If the owner agrees to cooperate, the cost of finding a buyer is usually included in the price of housing and amounts to 50,000 - 100,000 rubles. If the apartment is sold not on the secondary market, but from the developer, the buyer himself determines whether he needs the services of a realtor and pays for them himself.
2. The parties enter into a purchase and sale agreement. Now there is no need to have it certified by a notary. They can complete the document themselves. If the parties decide to contact a lawyer, the specifics of payment for his services are previously agreed upon. Usually they pay equally or the obligation to pay rests with the buyer.
3. After concluding a purchase and sale agreement and transferring money, the buyer registers ownership of the apartment. The state duty is 2,000 rubles. – for individuals, and 22,000 rubles. - for legal entities.

IMPORTANT !!! If an apartment is purchased with a mortgage, the buyer must independently resolve all issues related to registration.

In this case, the procedure looks like this:

1. The borrower chooses the bank offering the most advantageous program and submits an application for a mortgage.
2. After preliminary approval, documents confirming identity and solvency are provided to the bank. If the borrower is married, the spouse is automatically involved as a co-borrower.
3. An apartment is being searched. It must comply with the bank's standards. It is not allowed to purchase housing in disrepair or with encumbrances.
4. The bank evaluates the property, the borrower does not pay anything - this service is provided free of charge.
5. A preliminary purchase and sale agreement is concluded with the seller.
6. An agreement is drawn up. There is no charge for this.
7. After concluding the main purchase and sale agreement, the buyer formalizes ownership, having previously paid the state fee.

IMPORTANT !!! When purchasing a home with a mortgage, the borrower will have to pay for insurance, the amount of which depends on the cost of the home. Usually it is 50,000 - 70,000 rubles. annually. He also pays interest for using the loan, their amount can be equal to the price of the property - it all depends on the amount and term of the loan. A prerequisite is making a down payment; this is also done by the buyer, but some lenders provide home loans without it.

Nuances of new buildings

Often, purchasing housing in a new building brings unexpected expenses. The fact is that the outlined building design almost always differs from the actual dimensions and configurations of the premises. It often turns out that the area of ​​the property being purchased is slightly larger than what was stated in the documentation, and the difference has to be paid.

Experts note that the actual housing area rarely differs from that indicated in the project by more than 3 m2, but often these extra meters can become significant expenses. Even not in the capital, but in the region, the price per square meter can reach 80,000 rubles, and the excess space is expressed in a decent amount.

It happens that the purchase agreement requires payment of utility bills in advance, for a period of up to 4 months. This is usually done to avoid the accumulation of debts to utilities and the emergence of complications between residents and providers of services, energy and resources.

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In this case, there are two options:

• If there is no contract for shared participation in construction, but the buyer has complaints regarding the quality of the work, simply do not sign the contract with the company.
• If a share participation agreement was concluded, but the developer did not fulfill his obligations or the work turned out to be of poor quality, you can challenge the transaction by sending a pre-trial claim addressed to the manager or other responsible person, or by going to court.

Partial repayment can save the borrower more than 1 million rubles.

Banks do not charge fees for full or partial early repayment. The calculation is simple. For example, if you bought an apartment for 4 million and took out a mortgage from a bank for 15 years, 3.36 million rubles. at 12% per annum, then the total cost that will need to be paid to the borrower during this time with interest will be more than 9.5 million rubles with a monthly payment of 55 thousand rubles. By increasing the monthly payment to 70 thousand rubles, it will allow you to pay off the mortgage 2.4 years earlier, which will save the borrower more than 1.2 million rubles.

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Buying an apartment on the secondary market

Independently purchasing real estate from the owner is fraught with great risks: it may turn out that it is under an encumbrance, and the transaction may subsequently be challenged by third parties. In this case, the buyer is likely to be left homeless and without money.

For example:

• The property is in common shared ownership, and the share was sold without following the mandatory procedure, when the seller must first request in writing consent from the other owners to purchase its part, because they are the first-priority buyers. If there is no response, after one month he can sell his share. If there is no prior notice to the other owners, they may challenge the transaction in court.
• Presence of minors among those registered in the apartment. In this case, the sale of housing is possible only after the child has first been provided with another home with registration. If this condition is not met, parents or guardianship authorities may petition to annul the transaction.

Purchasing real estate on the secondary market is fraught with negative consequences, so it is best to entrust the verification of the seller’s integrity to a qualified lawyer. The cost of services depends on the region of residence and usually varies from 5,000 to 15,000 rubles.

Accounting for additional payments

Many people are aware of the fact that when buying a house or apartment there will definitely be a need for additional costs. The question is to be able to take into account all such expenses, approaching the transaction fully armed.

As a basis for calculations, you can again take some average model, for example, an apartment near Moscow, with two rooms, at a real cost of 4.5-5 million. If such housing is purchased without a mortgage, then all of the above expense items must be taken into account, as well as an additional payment for excess square footage, if any. Even in direct negotiations with the seller, you can focus on the cost of 1 m2 of such an apartment at the mentioned 80 thousand rubles.

To this should be added the likely amount of prepayment for utilities for a maximum period of 4 months. Thus, simple calculations will show that in this case you will have to pay an additional 300 thousand rubles, most likely less. However, this is exactly the amount that should be kept in reserve for any unforeseen situations - of course, those funds that turned out to be unnecessary will not go anywhere from the owner and will remain at his complete disposal.

Document costs

The main list of expenses is related to paperwork. The list that will be needed to complete the transaction is provided by the seller and paid for by the buyer:

• Explication, cadastral passport - cost 2,000 - 3,000 rubles.
• Notification of the absence of arrears in tax and utility payments is free.
• Extract from the Unified State Register of Real Estate. The order will cost 750 rubles. Required to verify ownership. Issued through the MFC.
• Certificate of the number of people registered in the living space - no fee is charged.

In 2020, the list of required documents for the seller is not established (with the exception of an extract from the Unified State Register), but if necessary, the buyer can request an extract from the house register in order to avoid the appearance of applicants to challenge the transaction.

Who pays for the realtor's services?

A housing inspection is included in the list of mandatory costs. The requirement is due to the fact that the lender, when issuing borrowed funds, takes into account the cost of the apartment from a professional appraisal report. As a rule, each bank has already established contractual relations with a number of accredited firms and independent specialists. The borrower must choose exclusively from the list provided by the bank.

The services of appraisers will cost 2,000 - 6,000 rubles, the cost depends on the region, category of housing, and travel to the location of the property.

We invite you to familiarize yourself with How to remove an encumbrance from an apartment or house in 2020

Insurance

The legislation establishes mandatory insurance protection of a mortgage transaction against the risks of loss and damage to property. Banks can offer protection against additional risks, taking into account legal acts that prohibit the lender from conditioning the receipt of a loan on imposed paid services. Therefore, the borrower is offered two options.

A reduced loan rate is provided provided that the client insures:

• life from accidents;
• the risk of loss of property rights, violation of contractual terms, as well as the risk of loss of ability to work.

The average tariff is 1.5% of the amount of loan debt, the minimum is 0.5%.

Increased rate - if the client refuses to conclude an insurance contract or later refuses to pay annual insurance premiums.

For registration of rights to real estate and transactions with it in 2020, the buyer must pay a state fee of 1,000 rubles, which is determined by the Tax Code of the Russian Federation. It is possible to reduce the state duty by 30% when submitting documents electronically. Obtaining a document on ownership of an apartment is also impossible without paying a state fee (2,000 rubles).

When purchasing real estate in a new building, the project cost is paid, but upon completion of construction the area changes. If the actual square meters are less, the difference is returned by the developer. Any excess of the actual size of the apartment over the design size is reimbursed by the buyer. Usually the difference should be at least 1 sq.m. In this case, you will have to pay BTI for the services provided.

According to the terms of the contract, when moving into a rented house, it is sometimes necessary to pay the management company several months in advance for housing and communal services to ensure the uninterrupted supply of all resources. This is not a statutory requirement, so these expenses may be disputed.

Notarial services

As a rule, a mortgage borrower cannot do without visiting a notary. It is necessary to assure:

1. Consent of the spouse to conclude a mortgage agreement.
2. Confirmation that the borrower is single or unmarried.

Average prices of notary offices

Another reason to contact a notary is to repay part of a mortgage loan using maternity capital funds. To do this, it is necessary to formalize and certify the borrowers’ obligation to register housing as the common shared ownership of all family members.

Approximately, you will have to leave 2,000 - 3,000 rubles with the notary.

The bank can act as a guarantor for settlements between the parties during purchase and sale. This happens by renting a safe deposit box or opening a letter of credit. Cost: 2,000 - 5,000 rubles.

Real estate purchase and sale transactions take a lot of time and require serious investments on the part of the buyer. Depending on the market in which the apartment is purchased, costs will vary. There are 2 main markets:

• primary real estate;
• secondary real estate.

Cost Differences

Depending on the market in which the apartment is purchased, the buyer must control the various information provided by the buyer, as well as his documents.

When purchasing a primary home, be sure to check:

• title papers for land;
• project documents;
• developer's charter.

In the secondary market, it is necessary to check the apartment even more carefully, since the risks of losing the purchased apartment and money are much greater. It is necessary to check not only the seller’s right to complete this transaction, but also the collateral obligations on the object of the purchase and sale agreement.

Even if any controversial circumstances are identified, this document will serve as proof that the buyer has taken all necessary measures. And the court will not be able to challenge the purity of the concluded agreement.

As a general rule, the buyer must pay all the costs necessary to register the contract, determine the purity of the transaction, and some others. The seller is obliged to provide a complete set of documents for the property being sold to conclude the transaction. The responsibility for paying fees for providing the necessary certificates rests with the seller. But the buyer can easily include these expenses in the price of the apartment.

This category of costs falls entirely on the shoulders of the seller, who intends to begin completing the purchase and sale transaction immediately after finding a buyer. This point is very important, since a lack of necessary papers at the time of signing the deed of sale can stall the sales process indefinitely.

The following documents are most often required:

1. BTI certificates (floor plan, assessment, explication). If more than a year has not passed since the last verification, then you will have to pay about 400-500 rubles to obtain these certificates.
2. If the apartment has not been assessed or is outdated, then you will have to pay 1,200 rubles for a BTI technician to visit your home.
3. Additional BTI certificates confirming the compliance of the address, as well as the conformity of the housing area, will cost another 400-500 rubles.
4. If the apartment has a redevelopment (illegal), then depending on its nature you will have to spend an amount of 30 thousand rubles.
5. A certificate from the Federal Tax Service about the absence of tax arrears is free.
6. Extracts from the house register, certificates of absence of debt for housing and communal services - free of charge.

You can collect certificates yourself, or entrust this to a realtor, whose services will cost from 3 thousand rubles.

We invite you to read the Complaint about non-execution of a court decision to the prosecutor's office

An apartment can be purchased on the secondary or primary market, using your own or borrowed funds. Depending on the circumstances, the cost of purchasing a home will vary.

In a new building

When purchasing a home in a new building, costs do not change significantly. The purchase and sale agreement will not differ significantly from the one concluded when selling housing on the secondary market.

The buyer must be vigilant and check whether the seller has the right to sell the apartment. When purchasing a property from a developer, you should study the documents for the land, analyze the compliance of the design documentation with the actual condition of the apartment, and familiarize yourself with the charter of the enterprise.

On the secondary market

Purchasing an apartment that has been used by other owners involves many risks. There may be hidden owners, “forgotten” heirs. Difficulties may arise if the housing was purchased with maternity capital, but the parents did not take into account the rights of minors.

For a mortgage

When purchasing a home on credit, the buyer immediately makes a down payment. This is usually 1/5-1/4 of the cost of the apartment. Mandatory payments include insurance premiums and loan payments. On average, the amount will be 45-70 thousand per month.

Having taken out a mortgage, the buyer bears the costs until the loan is fully repaid.

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Payment of the state duty is a mandatory condition for carrying out a transaction related to the sale of real estate. Registration of the right to real estate is traditionally assigned to the buyer - the person acquiring it. However, the parties may agree on a different settlement procedure.

Since for individuals the amount of this type of state duty is small (only 2 thousand rubles), usually there are no problems with its payment. And for legal entities concluding a real estate transaction, its size is more impressive - 22 thousand rubles.

The buyer is also required to register changes in ownership of the property in the cadastral register. Application for it is carried out without charging a fee to the applicant.

In all other cases, the parties pay for documents and commissions separately.

To carry out transactions involving large amounts of cash, the parties often rent a safe deposit box and enter into a three-party transaction. The document sets out the conditions under which each party is allowed access to the money in storage.

At the moment, the cost of renting a safe deposit box ranges from 2-4 thousand rubles, depending on the credit institution and its prices. Also, to the possible expenses you should add a deposit, which is taken “for the key” and amounts to about 3-4 thousand rubles. Subsequently, this amount is returned to the payer after completion of the transaction.

The costs of renting a safe deposit box are borne by the buyer of the apartment, but the parties can agree to pay the required amount in half. If, due to the specifics of the transaction, the parties require several safe deposit boxes, then the costs of their use are paid by the interested parties. For example, if a property has several owners, each of them will pay for their own cell.

The standard rental period for a safe deposit box is one month. During this time, the parties must draw up the necessary documents, as well as register the transfer of rights to the real estate property in Rosreestr.

Buying a mortgaged apartment

If the apartment was previously purchased with a mortgage, but subsequently the citizen decided to sell it, he must request written permission from the bank. Without this document, the transaction may be cancelled.

The sale of a mortgaged apartment can be carried out in one of the following ways:

• The borrower independently repays the debt and then sells the home. The lender's permission is not required, because there will be no encumbrances.
• The buyer rents safe deposit boxes: he places money in one for the seller, and in the second for the bank. This way, you can pay off the mortgage instead of the owner, and leave part of the money for him in the form of the difference.
• Re-registration of a mortgage for a new borrower. This is unprofitable for the bank, because it is necessary to check the integrity of the candidate. If the application is approved, the encumbrances from the previous borrower are removed, and the buyer becomes the debtor.

When purchasing mortgaged real estate, the list of expenses is determined by the parties independently. If the bank sets a fee for re-issuing documents for a new borrower, it must pay it.

The total amount of all mortgage costs

For secondary housing

If we take a standard transaction, for example, for the acquisition of a secondary 2-k. apartments worth 3 million rubles with a 20% down payment in a Russian city with a million population, then the final costs for borrowers will include:

• estimate – approximately 4,000₽;
• insurance (property only) – 3,600₽;
• state duty – 1,000₽;
• rent of a safe deposit box for payments – 2,000 RUR.

For a new building

In transactions with apartments under the DDU from the developer, the number of expenses will be lower due to the fact that at this stage there is no need to insure the apartment, and there is no need to evaluate the property yet.

The total costs for a new building under construction of similar cost will be as follows:

• state duty - 1 thousand rubles;
• letter of credit or nominal account - 2 thousand rubles.

We invite you to familiarize yourself with the Orders for the main activities

If, in addition, the client uses the services of a realtor/lawyer, insures his life and health, and also in the case of using additional services directly from Sberbank, then the amount can increase significantly.

A potential borrower should know in advance what costs when applying for a mortgage will be included in the final cost of the loan. In addition to the main costs, which include insurance, real estate valuation, payment of mandatory notary and registration costs, additional ones may be charged - for processing a loan application, transferring funds between parties to a transaction, paying for the services of a lawyer and realtor. They need to be taken into account at the stage of choosing a bank and mortgage program.

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