Transfer of money when buying an apartment

When selling real estate, the notary is not obliged to certify the transfer of money. The parties to the transaction have the right to settle independently in any currency and under their own responsibility. After settlement, the seller and the buyer simply confirm the transfer of money with a notary.

When selling an apartment, cash and non-cash payments are allowed. Let us consider what features each method of transferring money has and what is better to choose.

Cash payment when buying an apartment

According to the resolution of the National Bank of Ukraine, when paying in cash, the amount cannot exceed UAH 150,000. If the amount is larger, in such a situation non-cash settlement is used. However, not all sellers want to sell housing with non-cash settlement, while the amount in cash is too small. Most often the transfer of money, despite the decree, is carried out in cash.

In practice, it is not uncommon for the parties to agree to write down a lower value of the apartment in the contract in order to save on state duty and Pension Fund fees. But in such a case the buyer takes a serious risk. If for any reason the transaction is recognized as invalid, the buyer will be refunded exactly the amount specified in the contract and will not be able to make any claims.

There are three ways of transferring money in cash when buying an apartment:

• Preliminary settlement. The buyer gives money to the seller, after which the contract of sale of real estate is concluded and notarized. At the time of the transaction, the seller still has the right to the property, while the buyer has already given him the money.

• Settlement upon change of ownership. The transaction is duly formalized, after which the money is transferred to the seller. In this case, at a certain point, the buyer already has the title but has not yet handed over the money.

• Mixed settlement. The transfer of money takes place after the signing of the agreement, but before the notarization of the change of ownership of the residential property. This method is the most popular in Ukraine. Sometimes the buyer also uses a receipt for insurance.

In the case of cash payment, a separate stage is the verification of banknotes for authenticity. It is carried out at the moment the money is handed over. It can be an independent check with the help of a detector, which is available in most notary offices. You can also check the authenticity of cash in a bank, but you will have to pay for this service.

Cashless payment when buying an apartment

The purchase of real estate worth more than 150,000 hryvnias must be made with non-cash settlement. In this case, the money is transferred from the buyer's account to the seller's account only in the national currency. Accounts can be opened in different banks, it does not matter the city. But if the accounts of the parties are opened in the same bank, you can save on fees, as banking operations within the bank are free of charge and fast.

In cashless payments, the parties - the Buyer, the Seller and the Bank - conclude a contract. According to this agreement, money is transferred from account to account only after certain conditions are met and certain documents are available. The seller can provide a notarized copy of the sale and purchase agreement in order to receive money on his account.

Cashless payment is often chosen by those who are afraid of falling into the hands of fraudsters. The transfer of money is carried out under the control of the bank, that is, the risk of fraud is reduced to zero. The contract specifies only the real value of the housing.

A notary can certify a real estate sale and purchase transaction only if there is documentary evidence of non-cash settlements in the national currency. Documents are issued in the bank after one of the following operations:

• the buyer deposits cash through the cash desk, after which the bank transfers the money to the seller's account;

• the money from the buyer's account is transferred to the seller's account.

It is also possible to use the option of a deposit with a notary. First, the buyer transfers the amount specified in the contract to the notary's account by any means. The notary then transfers the money to the seller's account after the foreclosure.

In a cashless transaction, the parties may incur additional costs, for example, for opening an account, for the bank's participation in the transaction, for transferring money from one bank to another, for cashing out money and for buying currency. Even before the transaction is concluded, it is necessary to decide who will bear these costs.

If you plan to sell or buy an apartment, but it is not clear which method of payment is better to choose - cash or non-cash, you should entrust this process to professionals. The staff of Mayak Real Estate Agency includes realtors, lawyers and a notary, which guarantees safe and legal transactions with both cash and non-cash payments.