What does the “net sale” of an apartment mean: features, conditions and recommendations

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Apartment is one of the most popular objects for transactions. Thousands of apartments are bought, sold, mortgaged or rented out every day. Selling your home takes patience. Buyers often ask to lower the price of a property, but the seller is unwilling to do so. Therefore, the sale of an apartment sometimes takes more than one month, and sometimes several years.

Today, real estate agents very often use the term "net sale". Undoubtedly, this concept draws attention to the apartment. From the article you will learn what the net sale of an apartment means.

The concept of "net sales"

There is no term “net sale” in the legislation. In practice, this concept has several meanings. Net sales are:

• sale of housing in a new building (no one has yet been registered in the apartment andno one has ever lived);
• sale of an apartment whose owners have other housing: a potential buyer will not have to wait for the owners to vacate the housing.

In simple words, the free (net) sale of an apartment is the sale of housing in which no one is registered. Sometimes, when communicating with a re altor, you can hear the expression "clean", or "free sale of an apartment." These terms have the same meaning, so both terms can be used.

But do not confuse the concept of “net sale of an apartment” with the legal term “clean apartment”. The latter means that the apartment was not seized, it was not pledged, and this apartment did not appear in illegal manipulations.

Let's take a closer look at what is a "net sale of an apartment"? What does this concept mean?

Meaning of Net Selling

Re altors and owners use the term "net sale" to designate a particular type of housing. As mentioned above, this means that the apartment has no debts, no restrictions and no registered people in it. Moreover, the owner does not need a clean apartment, the seller is only interested in receiving the money that will be received from the sale.

The most popular case of a net sale is the sale of living space that was inherited by several people. The sellers are only interested in getting their share of the inheritance.

By buying a clean apartment, you will be sure that you will not have to wait for the owners of the living space to find another suitable housing for themselvesand they will leave. This moment makes the deal much easier.

Apartments on sale have a drawback - they cost about 5% more than ordinary living spaces.

Virtues of net selling

Housing on a net sale, as a rule, does not require any additional documents. The apartment is completely ready for purchase - no restrictions are imposed on it and there are no registered tenants in it. These conditions allow you to make a deal within two to three days.

If you compare buying an apartment on a net sale with another option that is slightly cheaper, you will notice that the second option may end up becoming more expensive. Such a jump in price may be associated with inflationary phenomena during the transaction, which can be stretched for three months.

Speed of execution of the contract is the main advantage of a net sale. Free sale may be of interest to the buyer in several cases:

• desire to quickly close a deal: this will allow you to move in in a short time;
• if the buyer plans to take out a mortgage: banks are more willing to issue loans for the purchase of apartments of this kind.

Some complications

It's no secret that any deal can hide unexpected moments. Net sales are no exception to this rule. Here are examples of the troubles that can arise when buying an apartment on a net sale.

• Illegal sale of real estate. This means that the apartment was purchased fromscammers.
• Noisy neighbors or pets (e.g. dogs).
• Defects in repair. For example, leaking pipes, mold or cracks in the walls.
• The presence of insects in the apartment (ants, bedbugs, and so on).

How to identify pitfalls?

First of all, you need to carefully inspect the entire apartment. It will not be superfluous if you talk to your neighbors and find out more detailed information about the housing you are purchasing.

When you decide to buy an apartment on a net sale, you need to make sure that the sale of housing is really clean. Often sellers use the term "net sale" only to draw the attention of buyers to the apartment. It happens that the seller does not understand what the net sale of an apartment means. When buying an apartment, make sure that the property is really ready for sale, no one is registered in it, and the apartment is in a condition that completely satisfies you.

A few tips for the second home buyer

In order not to get into a difficult situation when making a deal, you need to pay attention to all the details and listen to the advice of professionals. With special attention it is necessary to buy secondary housing. What does the net sale of an apartment in the secondary housing mean? This implementation of housing that meets the requirements described below.

So, when buying a second-hand apartment, consider the following points.

• Are there any persons in the apartment whose rights may be infringed. These persons include persons with disabilities, children and individualswho are registered with a psychologist. Also, this group of people includes students who went to study in another city, people who serve in the army or are in prison.
• How many times this apartment was sold. Frequent resales are cause for concern.
• Reason for selling the apartment.
• The number of owners of the apartment. Ideally, if he is alone. But there are situations when there are several owners, and they are in unfriendly relations. In this case, a dispute may arise between the sellers, as a result, the sale will be delayed indefinitely.

To be sure of a quick transaction for the free sale of an apartment, you must order an extract from the USRN in Rosreestr.

In conclusion

Clean or free sale is not a legal concept. This phrase arose in the process of real estate work. A net sale implies the following provisions:

• the apartment for sale is not occupied;
• no one is registered in the apartment for sale;
• the seller of the apartment does not plan to buy other housing with the proceeds.

Experts recommend taking buying apartments on a net sale seriously. Before you buy an apartment, pay attention to all the nuances and pitfalls that are described in the article.