When buying an apartment in a building under construction, you trust your money and future housing to the developer. Therefore, at the first stage, it is important to choose a reliable developer with a good reputation.
Find out how many years the company has been operating in the real estate market, how many projects it has already commissioned. Share information about the developer with your loved ones, perhaps they have useful information or personal experience.
Look at the feedback from equity holders about the quality of the built housing, compliance with the delivery deadlines, assess the overall level of trust in the developer. Sometimes reviews on the developer’s website differ from real opinions on forums and social networks.
Analyze the developer’s current projects at different stages of construction, evaluate their scale, technical characteristics. Pay attention to the availability of social infrastructure – kindergartens, schools, clinics, shops, convenient parking, commercial premises. This indicates a comprehensive approach from the developer. The sales office and the company’s website can also say a lot – how transparent and customer-oriented the developer is.
Be sure to study the project declaration, constituent documents, construction permits, certificate of ownership or lease agreement for the land plot. Request data on the company’s financial stability, accounting statements. Assess whether the developer offers mortgages from large banks – this indirectly confirms its reliability. If the developer is a participant in federal programs or has received awards at professional competitions, this is also a good sign.
Find out whether the developer builds under DDU (equity participation agreements) using escrow accounts. This scheme protects the rights of equity holders. Buyers’ money is kept in special accounts in the bank and is transferred to the developer only after the house is completed. If construction is frozen, people are guaranteed to get their invested funds back. Even if the developer offers other “favorable” purchase schemes (bill of exchange, through a housing cooperative), it is better to choose a proven escrow account.
Carefully read the DDU. It is worth paying attention to key points – the price of an apartment in a new building, delivery dates, liability for delay, quality of finishing. If the developer offers a non-standard contract with vague wording – this is a reason to be wary. It is better to involve a lawyer to examine the contract – this will help to avoid risks.
To summarize: the ideal developer has been working on the market for a long time and stably, has experience in successfully implemented projects, builds high-quality new buildings, strictly complies with the law, uses DDU with escrow, provides favorable mortgages from reliable banks. And does not put pressure, but gives time to make a decision.
