If you plan to invest in a property that is still under construction, there are key factors you must consider to make the right decision and avoid potential problems in the future. Below, we’ll discuss the most important aspects to keep in mind when purchasing an apartment under construction.
1. Reliability of the Developer and Contractor
One of the first things to pay attention to is the reputation of the developer and the contractor. Research their previous projects, ask for recommendations from other buyers, and ensure they have all the necessary permits and licenses for construction. A reliable developer guarantees that the work will be completed according to plan, and that all legal standards and deadlines will be respected.
2. Legal Documentation
One of the most crucial steps is to review the legal documentation. Make sure the developer holds a valid construction permit and that the land on which the building is being constructed is free from mortgages, legal disputes, or other encumbrances. Additionally, ensure all documents are compliant with current laws and regulations in Montenegro. It’s recommended to hire a lawyer specialized in real estate to ensure that all your interests are protected.
3. Contract Review
The contract for purchasing an apartment under construction must be detailed and clearly defined. Pay particular attention to clauses regarding completion deadlines, payment schedules, potential modifications to the apartment, and the warranties provided. The contract should specify what happens in case of construction delays or project changes. It’s essential to have clearly defined rights and obligations at all times.
4. Completion Deadlines and Possible Delays
Although the contract will specify the planned completion date, delays can often occur due to various reasons—weather conditions, material supply issues, or technical challenges. It’s good to consider this possibility in advance and ask the developer about their history of meeting deadlines. Also, check if the contract includes a penalty clause for delays, which can provide additional security.
5. Payment in Construction Phases
When buying an apartment under construction, payment is often made in phases. This allows you to monitor construction progress before investing the full amount. This payment method protects both the buyer and the developer, as you pay according to the completed work. It’s important to be familiar with all phases and payment deadlines to avoid unpleasant situations.
6. Final Inspection and Warranty
Once the apartment is completed, before receiving the keys, a thorough inspection of the final works is necessary. Check the quality of materials used, the finishing of walls, floors, installations, and other elements. In case of any discrepancies, insist on corrections before making the final payment and taking possession of the apartment. Also, inquire about the warranties for materials and installations.
7. Costs and Additional Expenses
Beyond the price of the apartment, there are several additional costs to consider. These include property transfer tax, notary fees, registration in the land registry, and potential costs for a technical inspection of the apartment. It’s good to make a detailed assessment of all costs in advance to avoid surprises with additional expenses after the purchase.
8. Future Development of the Area
When buying an apartment under construction, it’s essential to consider the surrounding environment. Is it in a developing part of the city? How is the transportation connectivity, proximity to schools, kindergartens, shops, or other essential amenities? Inquire about future development plans for the area, as this can significantly affect the quality of life and the value of your property in the future.
Conclusion
Buying an apartment under construction can be an excellent investment opportunity, but it requires careful planning and research. Timely checks on the developer, legal security, clear contracts, and a thorough inspection of the final works are key factors that will help you avoid potential issues and secure a quality property. While the process can be lengthy and sometimes demanding, with the right approach, you can make the right decision and invest in a property that meets all your needs and expectations.
