Staged payments buying property

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dron
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Staged payments buying property

Postby dron » Sat Jun 18, 2011 7:35 am

We are selling our villa in Medovo, and have been asked if we would accept
a large deposit, then the balance paid over a period of time. Has anyone
had any experience of this method. No doubt many pitfalls.
Cheers
Dron

plumb-bob

payments

Postby plumb-bob » Sat Jun 18, 2011 7:50 am

as long things are in black and white it should be ok
final payment then keys and notary documents ect
after all were can you borrow money interest free

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Postby brianj42 » Sat Jun 18, 2011 8:22 am

My opinion. Black and White means diddly squat in BG as we have all seen over the lifetime of MYBG. Countless people are still dealing with the fallout of problems they have, mostly with everything nicely in "Black and White".

Bulgarian contracts to me are like insurance companies, ok until you need to claim and then the small print bites you on the bum and you're left high & dry (Or wet if its a flood claim).

If it was me, and you had no choice in the matter, then I would treat this like you would a Uk mortgage. The house stays 100% in your name until the final payment...No negociation. And. They have any default over 2 months and you keep the house. And at that point they lose everything they've paid. No keys until finished paying.

I know one person who has done this and it worked out fine, but I know another who also let them move in and is still chasing €50k 4 years on and can't seem to do sod all about it.

Sorry, but Bulgaria, Real Estate, Contracts, Part Payments, Money...Each piece of this puzzle I trust no b**ger.

caveat venditor
Last edited by brianj42 on Sat Jun 18, 2011 8:39 am, edited 1 time in total.

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rgawith
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Quite agree

Postby rgawith » Sat Jun 18, 2011 8:37 am

I have done it with a small old house - buyer paid a 20% deposit and is then paying monthly instalments for 5 months until amount paid off. But no title or keys given to her and if she defaults then loses all.

I know a couple of agents that sell this way and do give title and keys on payment of instalment but with caveat that title is transferred back if buyer defaults, however all well and good until have to test this option.

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Re: Quite agree

Postby brianj42 » Sat Jun 18, 2011 8:42 am

rgawith wrote:I know a couple of agents that sell this way and do give title and keys on payment of instalment but with caveat that title is transferred back if buyer defaults, however all well and good until have to test this option.


100%

Its a slightly different story to selling, but just read Shebry's Tale of woe about getting his house back through the Bulgarian courts, I wouldn't think you would have less of a journey.

The length of the thread alone is enough to put you off.

http://www.mybulgaria.info/modules.php? ... ght=shebry

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Postby booboo » Sat Jun 18, 2011 8:45 am

brianj42 wrote:
If it was me, and you had no choice in the matter, then I would treat this like you would a Uk mortgage. The house stays 100% in your name until the final payment...No negociation. And. They have any default over 2 months and you keep the house. And at that point they lose everything they've paid. No keys until finished paying.



Sound advice BUT I don't think UK mortgages work this way..lol

Where would the mortgage payer live for 25 years while waiting for the keys?

I would have thought if the deposit is large enough, then keys could be given immediately as long as the monthly payments are maintained. In effect like a long term rental, BUT you must make sure you are getting way more than normal rental income in my opinion to take the risk. Bear in mind you should be insuring the property in the meantime. If it is not furnished (by you) then the risk is minimal. BUT it does beg the question, unless you are asking astronomical amounts why the buyers cannot raise the funds via personal loan, or credit cards etc. It will of course mean interest payments but surely they would feel more comfortable owning the house from the outset, rather than trusting you (it works both ways) to honour the deal once they have paid in full.

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Postby brianj42 » Sat Jun 18, 2011 9:09 am

booboo wrote:
Sound advice BUT I don't think UK mortgages work this way..lol



Kinda, but the mortgage company own the deeds of the house from day one until its fully paid. You get the deeds once you've paid it all. If you default the mortgage company get the house.

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Postby booboo » Sat Jun 18, 2011 9:11 am

brianj42 wrote:
booboo wrote:
Sound advice BUT I don't think UK mortgages work this way..lol



Kinda, but the mortgage company own the deeds of the house from day one until its fully paid. You get the deeds once you've paid it all. If you default the mortgage company get the house.


Sorry Brian, I just meant the keys bit :) :)

FAYESY

Postby FAYESY » Sat Jun 18, 2011 2:14 pm

Ok the husband & I last year asked about a chap where you could pay a deposit of £500 then monthly payments of £300.

I was told not to do it - but after extensive web searches I could find no dirt on Paul Hawtin.

Fast forward to this year in fact 2 months ago & we found another of Paul's houses on ebay - went to see it & a week later we had paid the deposit & reduced the monthly payment as £300 was a bit tight to £200.

We have the keys. WeI have a proper contract my lawyer was happy for me to sign. So far the people are lovely. Paul is often in the UK so I deal with his partner Pav & its going well. 28 more payments & the house is mine!

We are free to do any renovation work, its our home we can just make payments we can afford.

Going well so far - & this man has sold lots of houses this way. It can & does work.

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maybe

Postby rgawith » Sat Jun 18, 2011 4:13 pm

Paul was the person I was talking about who I know does this. And so far I believe all is pretty much going to plan for everyone concerned but my only point was that these contracts are untested so far as if someone stopped paying and was in the house and had done renovations - how easy would it be to evict them, how easy would it actually be to get title back if they challenged it....

Until something goes wrong and it ends up in the hands of lawyers there is no way of really knowing how good these contracts are or what would happen.

That would be my worry anyway.....

I have had to evict squatters from my house in the past and that was hard enough and they had no right to claim the house, even though they tried.


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