May 25, 2023, 11:10 am | Read time: 4 minutes
The myHOMEBOOK series “The Path to Homeownership” highlights the individual steps in buying real estate–from the initial desire to the handover of keys. In this article, real estate agent and myHOMEBOOK author Christopher Hnida explains what is important at the closing.
Buying a property is a decision that requires careful consideration. As part of our six-part series “The Path to Homeownership” on real estate acquisition, this article focuses on the penultimate phase: the purchase process. What should you know about the notary appointment, the purchase contract, and the handover of keys? Real estate expert Christopher Hnida provides the answers at myHOMEBOOK.
Overview
How does the notary appointment proceed?
Before the notary appointment, buyers and sellers receive the contract text as a draft and can review it thoroughly. It may be wise to consult a professional if you’re not familiar with the field. Once all questions are resolved and the parties agree to the terms outlined in the contract, they meet at the notary’s office for signing.
The notary reads the contract from start to finish and usually explains a few key points. Naturally, you also have the opportunity to ask questions. If everything is as desired, the parties sign the contract, making it legally binding. However, you won’t receive the keys immediately. You can also wait a few weeks before buying paint and painter’s tape. There are still a few more appointments to follow.
How does the handover of keys work?
The timing of the handover of keys is also known as the “transfer of benefits and burdens.” This is usually linked to the payment of the purchase price. All benefits, such as the ability to live in or rent out the property, transfer to the buyer. The buyer also assumes all burdens, such as paying operating costs and the so-called “risk of accidental loss,” for example, due to fire or similar events.
A protocol is kept for the handover appointment. For proper billing, it is important to record all meter readings. It is also crucial to note that the property’s condition is as agreed.
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When do I have to pay the purchase price?
This is determined by the purchase contract. When buying a property still under construction, installment payments are agreed upon based on construction progress. The basis for this is the MaBV, the Broker and Developer Ordinance. For an existing property, the purchase contract specifies conditions for the payment of the purchase price. These usually include:
- The entry of the priority notice of conveyance in the land register in favor of the buyer
- The presence of the administrator’s consent
- Secured deletion of any land charges still on the property that the buyer does not assume
The agreement of these (and possibly other) conditions is the reason for dispensing with the previously common notary escrow account. This trust account was used for money transfers when buying a property. The purchase price is therefore transferred directly to the seller upon the notary’s request. This usually happens within four to six weeks after the notary appointment.
When can I move in?
You can move in immediately after the transfer of benefits and burdens. From this point on, you are actually in possession of the property and can also begin renovation work. You are also able to sign a rental agreement if you wish to rent out the property.
More articles from “The Path to Homeownership”: