What threatens the buyer in the event of the collapse of the developer?

Posted: September 10th, 2013 | Author: | Money

The poor condition of the real estate industry has been discussed for some time, and it does not seem to change recently. Just as we cannot see the economic growth, we were waiting for many years.

reallyboring / photo on flickr

reallyboring / photo on flickr

Most apartments are sourced from developers. Keep in mind, however, that these are private companies with a specific capital and operating at a certain, specific market. Market, which does not look particularly stable, and from which, unfortunately, you can fall out. Each developer may collapse, no difference whether it is big or small. As a buyer of flat we have to go by a variety of procedures and steps that often require us to pay fees. Meanwhile, we are at the final straight before moving into our own new home.

At this point, the developer declares bankruptcy. What awaits us in this situation? To put it generally can make us wait for one of the three options that are most likely to occur. The first is that as a result of bankruptcy, you will get the apartment, and do not lose their money. The problem can only be that it will be delayed, which in this case may unfortunately occur. If a bank or insurance company gave us the assurance that we can count on a refund, but then unfortunately we are not be able to purchase a home. However, we shouldn’t have any complications beyond that. It may also happen that we do not recover the money paid and we will not be able to buy an apartment. This is, however, only when there was not a safe contract, so you should be interested in all types of insurance and guarantees.

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