Payment of the price when buying a real estate

Payment of the price when buying a real estate

 

1. The transfer of the money to a notary's account, for which purpose we need to express an agreement with the notary. Part of the deal with the notary may be that the sale amount is transferred to the seller only after the notary has entered the contract and is satisfied that there are no prior entries for the real estate burdens (such as the right of use, construction, right to superstructure). This is a guarantee to me as a buyer that the money will be received by the seller only after the risk to me is limited to a minimum.

 

2. The transfer of money to a seller's current account, which is provided to the buyer. There is a risk that the seller will receive the money under the contract without the buyer being guaranteed to the maximum extent that he has received the ownership of the property. In the event of abuse by the seller, I will have to take a long court battle to get my money back, and in some cases may even "drink cold water" because the seller has spent everything and no property against which a forced execution took place.

 

3. Money can also be transferred through a special form of payment that ensures the maximum performance of the contractual obligations of both parties and is called the letter of credit. Although in practice the letter of credit is mainly used in trade with foreign partners, I can consider using it also for payment under a contract for the purchase of real estate. To do this, I have to fill out an order for opening a letter of credit indicating:

 

my full details as an orderer - three names, address for correspondence, telephone;

the full details of the seller to receive the money - three names, address, in the case of UL - registration elements and UIC on the BULSTAT register;

amount and currency on the letter of credit (selling price);

required documents for the use of the letter of credit - of the utmost importance in order to ensure the maximum acquisition of ownership of the property. Here I can say:

 

term of validity of the letter of credit - the time the bank will be able to pay the seller's amount;

way of payment of the amount that may be "on sight" - payment of the full amount to the seller when he personally or through a proxy appears in the bank;

Once I have created the Letter of Credit and I have secured the payment on it by my own means, the Seller remains responsible for fulfilling the conditions stated in the letter of credit, to appear in the bank and to submit the documents I have indicated. When bank employees are convinced of the availability and the accuracy of all the documents submitted, the bank will pay the seller's (selling price) amount to the seller, which gives me a guarantee that the amount will be paid once the transfer of ownership has been proved to the bank by the seller .