How to avoid risks when paying your deposit on a house
31/10/2018 20:29 | Source: Vnexpress
You may lose your money without having any home if you decide to pay deposit without knowing clearly the seller and the house you intend to buy.

A deposit is a civil security measure that is regularly used on a property transaction. Personal real estate specialist Phan Cong Chanh (HCMC) has recommended some tips for property buyers to avoid risks before, during and after signing a deposit contract:

Before paying deposit

After negotiating the price, you should check the following questions:

1. Is the owner the real owner of the property?

You need to check whether name, photo, ID card number written on the Certificate of Ownership match personal information of the one who introduces himself as the property’s owner. 

You should also bring a photocopy of the Certificate of Ownership to the local administrative agency for inspection. Typically, the People Committee of the commune/ward or Head of the neighborhood know whether the property’s owner is the real one or not.

2. Is the property located in a planned zone?

To find out if the property you intend to purchase is in a planned zone or not, you can go to the Department of Urban Management or the Department of Planning Inspection at the People Committee Office of the district where the property is located.

3. Is transaction on the property blocked? 

This information will be checked when you bring a photocopy of the Certificate of Ownership to the Notary Public Office. Notarization will be impossible if the property enters into litigation due to property disputes or the enforcement of judgment, etc.

How to avoid risks when paying your deposit on a house 1
Before paying deposit on a property, you need to check all details
to avoid troubles in the future

4. Drafting a deposit contract

The party preparing the deposit contract will be the beneficial owner. Deposit contract is the first important document signed by both parties. In this section, you should ask a lawyer or experienced consultant for help.

Considerations before signing a deposit contract

- Deposit contract may or may not be notarized. If not, the contract will remain in force under Article 328 of the Civil Code 2015.

- You also need to check all relevant terms such as location map, number of sheets, plot number, personal details, home address, purchase price, handover date, payment periods, tax, fees, etc...

- To avoid future troubles, when signing contract, you should ask for attendance of both the seller and his/her spouse. 

After signing a deposit contract

- If you need a bank loan, after signing the deposit contract, you should contact banks to learn about borrowing procedures. You should also consider your finance situation to choose the most suitable lender.

- Resolve with existing tenants if the home is rented.

- Financial preparation.