12 Tips for Those Buying an Apartment in a New Building

For those who buy apartments in new buildings, it is often necessary to wait for the coveted keys for more than a year. What should you do to make this time pass peacefully? And what should you know to avoid unpleasant surprises from the developer? We share tips on this relevant topic.

1. Try to buy housing through a DDU

If the developer works under a participation agreement – in accordance with Federal Law No. 214 – this means that they have a construction permit, and generally, all documents are in order.

The most important thing is that a DDU protects you from selling the same apartment twice. If the developer goes bankrupt, your claims will be secured by a pledge.

2. Find out if banks trust the developer

It is good if the future building is financed by several banks, not just the one that finances the developer. Even better if the main creditor is a well-known bank with solid financial resources. In case of insufficient funds to complete construction, reliable banks will more likely provide additional financing rather than freeze the project.

3. Check the investment attractiveness of the building

Pay attention to the location of the building, landscaping of the territory. How private is the courtyard area, are there equipped children's playgrounds and adult recreation zones, is there parking?

Today, many modern residential complexes house shops, cafes, and hair salons on the first floors, which is very convenient. Moreover, most objects of social and cultural or commercial purpose are accessible within a 5–10-minute walk.

4. Evaluate apartment formats and layouts

Modern residential complexes, such as ЖК «Южное Бунино», offer the most diverse living spaces – from small studios to exclusive two-level apartments and apartments with patios.

Regardless of the size of the apartment you purchase, its layout should be designed according to ergonomic principles. Make sure that the floor plan meets standards for living space design.

5. Are there apartments with finished interiors?

An apartment with a finished interior is a modern and very convenient solution: no trips to building supply stores or dusty renovations. You simply move into a ready-to-live-in home and decorate it according to your taste.

6. Monitor the developer’s reputation

Pay attention to how many buildings the developer has constructed and what problems occurred during construction. Try registering on a forum dedicated to the building, meet future neighbors. Through communication with other participants, you will learn about all disadvantages and advantages of the new building.

7. Don’t forget to verify documents

Developers who have nothing to hide will provide you with a complete list of documents in accordance with Federal Law No. 214. These are not commercial secrets.

These documents include: construction permit, technical and economic justification of the project, expert conclusion on project documentation, the project documentation itself, and a document confirming the developer's rights to the land plot.

8. Clarify the possibility of hidden additional payments

The contract should specify that the apartment price can only change in case of discrepancies with the actual area after a BTI measurement before the building is put into operation.

However, participants are usually expected to pay registration fees for the DDU from 20,000 to 100,000 rubles. Additionally, many developers include payment for utilities from the date of signing the act of putting the building into operation until keys are received – on average, from 10,000 to 50,000 rubles.

9. Remember the need to register the contract

If the developer submits the contract for registration, it should contain a clause specifying the deadline for submitting documents to Rosreestr and the obligation to provide the registered contract to the participant.

If documents are not submitted on time, the participant has the right to claim compensation for losses.

10. Demand penalty payments for breach of obligations

The contract should include conditions for paying penalties. According to law, the penalty is calculated at 1/300 of the Central Bank's refinancing rate on the day of fulfillment, based on the contract price. If the participant is an individual, the penalty is paid at double the rate – 1/150 of the Central Bank's rate.

11. Consider the global crisis situation

Law No. 214 provides several ways to ensure the developer's obligations to buyers. These include a pledge of the land plot or lease rights, bank guarantee, and civil liability insurance.

Additionally, amid the crisis, developers sometimes agree to changes in standard contracts, which was nearly impossible just a few years ago.

12. Know the difference between putting into operation and handing over an apartment

When a building is put into operation, some participants begin to demand keys, although it usually takes another half year. If the building’s operational date is postponed, buyers often assume that the developer has problems.

In fact, the operational date is a planned date set by the developer. However, the handover of apartments to participants should occur no later than the date specified in the DDU.

Text: Alexandra Kaldina

Illustrations: ЖК «Южное Бунино» in Yamonovo (MICS)