Buying off plan

You’ve finally made it! Your idea of investing in real estate has come a long way and now that you have imagined your future ideal home, you are finally ready to take the step to live or invest in it. However, one question remains and not the least important one: what are the different steps towards buying off plan? Swissroc Properties gives you the keys to making your real-estate dream come true.

WHAT YOU NEED TO KNOW ABOUT BUYING OFF PLAN

The quote-part terrain system (the system of buying your share of the land to build your property)

Real-estate development is marketed under the quote-part terrain system. In concrete terms, it is a system used as part of an off-plan purchase within a co-owned property.

However, this means that all future co-owners in this programme simultaneously purchase their share of the land, known as the “quote-part” and individually sign a contract with a general construction firm.

The future owners then acquire their share of the land before work begins. The payment of invoices relating to the work is made in instalments as the various stages of the project are completed.

The vente à terme system (sale with a delayed transfer date)

This type of purchase is achieved by the payment of a deposit, usually between 5 and 20% when the deed of sale is signed. The balance is paid when the property is delivered, i.e. when ownership is transferred.

The purchase fees are calculated based on the total price of the building and will be higher than in the case of a quote-part terrain purchase.

Usually, no mortgage financing is needed for the payment of the initial deposit (10-20% of the purchase price), because this amount corresponds to the required equity contribution. No debit interest will therefore have to be paid.

This type of purchase offers advantages in terms of acquisition fees, because these are calculated based on the quote-part terrain and there is no interim interest, as the financial institution will only release the funds on completion of the work.

The stakeholders

• The broker: coordinates communication with the developer, the general contractor, the notary and the buyers; informs you about the contractual terms and conditions necessary for construction to run smoothly all the way until you purchase your property.

• The general contractor, commissioned by the developer for the construction of the real-estate project: oversees the progress of work throughout construction; hires quality craftsmen and assists you in your various choices of materials; responsible not only for supervising construction but also for the delivery of the property.

• The notary: advises you of all the legal particularities and subtleties linked to your acquisition; responsible for the drafting and signing of the authenticated deed of sale; finally, assembles all of the guarantees related to mortgage financing (mortgage note; personal debt).

• The bank: draws up the buyers’ bank contracts for their project; ensures that the sales prices are consistent with the property market and that all future co-owners have the means to purchase their property.

• Pension institutions: for people using their pension savings, i.e. their 2nd or 3rd pillar LPP, in the form of equity (withdrawal or collateral).

Also with Swissroc Properties

• The mortgage-financing consultant, e-Potek. This mortgage consultant is there for all the procedures related to your mortgage financing. A financing consultant analyses your personal situation and offers you the best possible financing plan. Once this is approved, e-Potek’s mission is to obtain the best certificate of financing from the bank in charge of the development. The role of the consultant does not stop there; his/her analysis makes it possible to identify the tax implications linked to potential withdrawals from pension funds and thus to avoid certain tax pitfalls.

THE PROCESS OF BUYING OFF PLAN WITH SWISSROC PROPERTIES

Buying a new build property consists of eight key steps involving different contacts and partners. From the financing certificate, which is the first step, to the handing over of the keys, here are the eight steps to follow.

8 steps to the handing over of the keys!

1- The certificate of financing is free of charge and easily obtainable on the e-Potek website, which will indicate your borrowing capacity in just a few clicks.

2- The certificate of financing from the bank remains the main condition for confirming the reservation of your property. e-Potek helps you to answer all your queries and establish a high-quality financing application that meets all requirements. The goal? To obtain the best financing solution.

3- The reservation of your property is the second essential condition for its acquisition. In practice, it is simply a matter of signing a reservation agreement and paying a deposit at the notary’s office. It is carried out with the broker and binds you with the latter and with the developer.

4- The allocation of the property, which is certified by the developer, is implemented once the bank financing has been confirmed and the reservation conditions have been met, i.e. the convention agreement has been signed by the client and the developer, and the reservation deposit has been paid to the notary.

5- The signing of the credit agreement with the bank chosen for your project is carried out in collaboration with e-Potek, which assists you throughout this step and also with establishing the terms and conditions regarding your capital.

6- The signing of the contract with the general contractor confirms your choice of fittings for your property. The client adviser assigned to the project and Swissroc Properties accompany you throughout the construction of the real-estate project.

7- Signing at the notary’s office is a key step. Indeed, all future buyers are invited and must pay for their quote-part terrain, the first invoice from the general contractor and the notary fees.

8- The general contractor becomes your main partner during the construction phase. It contacts you as work progresses for the settlement of the invoices. You will need to transmit instructions directly to your bank to carry out the payments.

So now you know the main steps of an off-plan sale. There is no doubt that by following this process, buying a new property will be a guaranteed success!

Swissroc Properties, a subsidiary of Swissroc Group, accompanies you throughout the construction of your future property as a real-estate broker at your service.

DO YOU HAVE ANY QUESTIONS ABOUT BUYING OFF PLAN?

Would you like more information? Do you have any other questions about real estate? Our team at Swissroc Properties is here to advise you and respond to all your requests.