Diana Kabakchi - Leading Expert of the Real Estate Market according to Forbes
Today we will divide this expert article in two parts. The first part is the checklist itself ✅, which is divided into thematic blocks, and the second is the comments of the leading expert of the real estate market according to Forbes. For each of the questions we will give not only the most important details, but precise instructions on what exactly you, as a buyer, should pay attention to, why and where exactly to expect pitfalls.
Are you promised an international hotel brand in a residential complex or a premium class complex that you chose?
- It’s an excellent reason to clarify a number of questions from the seller, both in general terms and at the very time before the sale and purchase of the advertised real estate takes place, to clarify the details and after that, to be sure to register it in the contract. Why should it be mentioned in the contract? The answer would seem to be obvious. But nevertheless, let us pay attention to the fact that sometimes apartment complexes are advertised to be of one kind, but represented in the contract differently. Everybody can see that when advertising a real estate object, the formal description is "Design documentation on the advertised site", but not everyone see it on that very advertised site. Let's skip the details of the subtleties of advertising, the main thing we want to warn you against is from advertising promises and we would like to advise you to have a professional approach and accurate verification of the developer, residential complex and official documents. Let’s start with getting answers to the first block of general questions.
What should be done first? - To check the reputation of the construction company. Therefore, block of questions # 1 - Questions about reputation.
1. CHECKING THE DEVELOPER'S REPUTATION:
✅ What projects are completed?
✅ Were they delivered on time?
✅Are there any reviews about the project?
✅ Who are the partners of the construction company?
✅ How long has the company been on the market?
✅ How many completed residential complexes?
✅ What kind of experience does the company have in construction?
✅ What construction technologies are used?
✅ What are the company's clients talking about?
✅ Is there any information about the company in the media?
✅ What is the developer's site? How many languages does it have?
✅ What is the official website of the residential complex?
✅ Are employees listed on the website? is there any photos of them?
✅ When was the company's website registered? Check here - https://who.is
✅ When was the company's facebook / linkedin / twitter / youtube registered?
✅ What interest does the company attract in these social networks? Are there any views, comments?
✅ Company documents, pay attention to the date of registration of the organization and to all dates in all documents.
✅ What are the guarantees of construction?
✅ What will happen in case of bankruptcy of the developer company?
✅ Is the buyer legally protected in the event of company bankruptcy? How exactly?
✅ We all believe in best, but maybe there are any bank guarantees? Any others?
✅ Request a construction schedule (must be provided immediately);
✅ Chronology of construction;
✅ Online broadcast of construction;
✅ What construction technologies are used?
4. MANAGING COMPANY:
✅ Why will my apartments be rented out?
✅ What kind of experience in management, if any. Ask to show the calculations on a current example
✅ Is there an IT solution for monitoring and managing apartments remotely? (ask for a demonstration)
✅ If the sales department says that a global brand and its management company will be brought over... It is worth asking a question whether it will manage your apartments? If yes, ask for a management contract.
✅ Can a management contract be signed immediately?
✅ What does the global hotel brand have to do with my apartments?
✅ Which hotel brands has the developer already attracted?
✅ Do you have any successful experience with hotel brands?
✅ If a company provides guaranteed income, what is it based on? (The developer knows how to build - CONSTRUCTION, but management is a completely different business - MANAGEMENT; What have you already managed?, it is worth asking without modesty)
✅ What are the guarantees of the quality and standard of your management?
✅ Can I see the Booking.com admin panel/reports for the period?
✅ What services are available for you as a resident - guest - investor?
✅ Is there a contact or public agreement on cooperation with the hotel brand? (pay attention only to wet seals.)
✅ Is there any agreements with the management company? Which one? (pay attention only to wet seals)
✅ Is there a photo report from a public event on the signing of a memorandum or cooperation agreement?
✅ How do you track the occupancy rate?
✅ Will my apartments be rented out evenly with my neighbor's?
✅ What is the standard of renovation and its quality?
✅ Is there a design project? (what is the list of building materials? who is the manufacturer? the showroom?)
5. QUALITY AND CONSTRUCTION TECHNOLOGY:
✅ Building foundation. What technology was used, pillow or pile?
✅ What formwork technology is used? (because the quality and texture of the surface of monolithic structures also depend on the formwork)
✅ The facade of the building. Who is the manufacturer and who carries out the installation, what materials are used?
✅ Windows. The manufacturer, what is the sound insulation?
✅ Parking, is there free parking or parking for rent and ownership?
✅ Availability of infrastructure for the residents of the complex. The pool is at least 20 meters in length. The presence of a recreational area is required (at least 2500 square meters, for a comfortable stay)
✅ Elevators. Manufacturer. (contract)
✅ Fire-fighting system
✅ Availability of gas
✅ Ceiling height. Not less than 3 meters.
6. Legal side of the issue:
✅ The contract must state the infrastructure, if there’s any provided. It also must include the consequences in case of default.
✅ What are the consequences of the developer failing to fulfill the obligations to deliver the object on time?
✅ Is the hotel brand that is promised to run business in the complex specified in the contract? (if the developer does not mention it in the contract then this is a reason to think about its reliability)