Buying a home on designs from real estate promoters ~ Investment,finance for businesses

Sunday, August 22, 2021

Buying a home on designs from real estate promoters

 

Buying a home on  designs from real estate promoter

Buying a home on designs in Algeria

Who is the Algerian real estate promoter

A real estate promoter is every natural or legal person who initiates the operations of building new projects, renovating or rehabilitating, renovating or restructuring, or strengthening buildings that require one of these interventions, or preparing and rehabilitating networks in order to sell or rent them

Who can be a real estate promoter

Every natural or legal person, obtaining accreditation, affiliated with the Mutual Guarantee and Warranty Fund in real estate promotion and registered in the national list of real estate promoters, who practices the activity of real estate promoters

What is the real estate promotion field

The real estate promotion activity includes every process of realizing a real estate property for residential or professional use, all the acquisition and preparation of real estate containers for the purpose of construction, every process of preparing, rehabilitating, renovating, restructuring, or consolidating buildings

What is selling on designs

Sale on designs for a building or part of a building to be built or in the process of construction, whereby a contract called a design sale contract that includes and enshrines the transfer of land rights and ownership of buildings by the real estate promoter for the benefit of the subscriber parallel to the progress of the works, and in return, the subscriber is obligated to pay the price As the achievement progresses

What is the difference between a contract of sale on designs and a contract of preservation of rights

The right-reserving contract is the contract through which the real estate promoter is obligated to hand over the property to be built or under construction, to the owner of the right-custodianship, immediately upon its termination, in return for an advance paid by the latter, not exceeding twenty percent (20%) of the estimated price of the property. The advance is deposited from an account opened in the name of the owner of the right to preserve the right, with the escrow fund, and the ownership of a property that is the subject of the right-keeping contract is not transferred until the date of the final payment of the price of the preserved property. The construction, so that the payment is parallel with the progress of the works

What is the interest of the real estate promoter in selling on designs

Selling on designs gives the real estate promoter many advantages, mainly

**The possibility of financing the real estate project through the repayments paid by the owners without resorting to a bank loan that requires a mortgage

What are the conditions that must be met in the real estate promotion for sale on designs

In addition to selling designs, the following conditions must be met in the real estate promotion

1Obtaining accreditation, affiliation with the fund and registration in the national list of real estate promoters

2Subscribing a guarantee for his real estate project with the Guarantee and Mutual Guarantee Fund in the real estate promotion

3Conclusion of the sales contract on the designs with the acquirer

What are the mandatory provisions that must be included in the sales contract on designs

1Designs must be included in the sales contract

2The legal formalities of real estate registration and publicity

3Elements that prove promotion (accreditation, affiliation, registration with the national list of real estate promoters)

4Items that prove the original land ownership and building permit

5A detailed description of the building or part of the building that is being sold; - the estimated selling price, the payment schedule in accordance with the regulatory model

6Nature and legal guarantees, ten years and good performance, as well as the fund's guarantee certificate

7terms and conditions for rescission or termination of the contract

8How to review the price if there is an agreed clause

What are the terms of payment in the context of selling designs

Sale price payment in sales contracts is set to designs

According to the progress of the project completion works in accordance with the payment schedule stipulated in the contract

It should be noted that the payment of the first part is only after the conclusion of the sales contract on the designs

Is there a contract after the sales contract for me designs

No, the contract of sale on designs is a complete ownership contract, which is not followed by any other contract. After receiving the completed property

Who is responsible for managing the common property after handing over the property?

The real estate promoter is obligated to guarantee or order the property management guarantee for a period of two (2) years starting from the date of selling the last part of the building 

He must also commit to completing the necessary premises for property management and the doorman's residence, under the title of common areas

The National List of Accredited Realtors

https://www.fgcmpi.org.dz/Affiliation_en


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