We buy real estate, when to transfer money?
A real estate purchase and sale transaction is considered concluded if the following conditions are met:
- The conclusion between the seller and the buyer of the contract of sale
- State registration of the transaction (registration of the transfer of rights) in Rosreestr
- Payment by the buyer to the seller of the amount specified in the contract of sale, confirmed by a receipt (for cash payments) or a payment document for non-cash payments
- Transfer of real estate under the act of acceptance and transfer
Today we will discuss in detail the third point: payment under the contract.
When and how to transfer money to the seller so that everything is in accordance with the law?
There are only two options for transferring money, regardless of cash or bank transfer.
- The first option: the transfer of money on the day of signing the contract of sale.
- The second option: the transfer of money after the state registration of the transfer of rights.
The transfer of money on the day of the transaction (when signing the DCT) is not safe for the buyer. Since in case of refusal in state registration, he runs the risk of being left without property and without money.
The transfer of money after state registration is safe for the buyer and can be safe for the seller, only following certain rules. If the payment is in cash, then the payment is made through an individual bank safe (safe deposit box) with certain access conditions for the seller.
Most often, the condition for access is a sale and purchase agreement concluded between the buyer and the seller, with a mark from the registering authority on the registration of the transfer of rights. Sometimes another condition may be included additionally (individually, for example, an extract from the house book that family members have been deregistered in the sold apartment).
If the settlement is non-cash, then on the day of the transaction a letter of credit is opened, which is disclosed after state registration, and the basis document is the same sales contract marked by the registering authority.
In principle, the functionality of a letter of credit is the same as that of a bank cell. Only non-cash payment. Today, cashless payments are cheaper and safer than using a safe deposit box.
With such a settlement procedure, when the money is presented by the buyer in the transaction in full and is stored in the bank until the moment of state registration, and only after that is transferred to the seller, the interests of both the buyer and the seller are fully protected.
And you don't have to reinvent the wheel. Follow these rules and everything will go smoothly. Any “self-activity" in cash settlements can be a problem for either the seller or the buyer.
If you pay in cash, the seller must necessarily write a receipt for the receipt of funds for the amount specified in the sales contract.