Buying a flat step by step – loan and agreement, part 2

In the previous article we began describing the detailed process of buying a flat and its individual steps. We left off at the point when you had already chosen a specific property and wanted to move on to finalising its purchase. So today we show what the next steps look like – from choosing your dream flat to becoming its owner.

Preliminary agreement

If you have already chosen a property and it is quite popular among potential buyers, it is worth drawing up a preliminary agreement (umowa przedwstępna). Colloquially speaking, it will protect you from having the flat you have your eye on snatched from under your nose. At the same time, however, it obliges you to buy it. A preliminary agreement also requires an advance payment (zaliczka) to the owner of the property. These are usually not high amounts. The amount hovers around 1,000 PLN. Developers selling new flats, however, may demand a higher sum. Here advance payments under a preliminary agreement reach as much as 10% of the value of the flat.

Time for the loan

If you are buying the property with a loan and have already signed a preliminary agreement, now is the best time to finalise the loan. Depending on the bank, the route to obtaining a loan may differ, and you will get all the necessary information at the branch you choose.

The agreement for the purchase and sale of the property

The next step is signing the sale and purchase agreement for the flat, which takes place at a notary's office. The notary will need only your personal data and the seller's contact details from you. He will take care of everything else himself. After the relevant documents have been prepared, you will be invited, together with the flat's current owner, to sign the agreement. The whole thing should take no more than an hour. During the meeting the agreement will be read aloud and then checked by each party.

When choosing a notary, it is worth making sure that he will provide a comprehensive service and handle the formalities concerning civil law transactions tax (PCC). You are obliged to pay it. It amounts to 2% of the price of the flat you are buying, and most notaries pay it on behalf of their client.

Other formalities

Signing the sale and purchase agreement is only the beginning of dealing with the formalities. Remember that immediately after leaving the notary's office, payment should be made to the former owner of the flat. If you took out a loan, the bank does this for you.

Next you need to deal with registering your residence, which you will do at the city office. If the building in which you bought the property belongs to a TBS (social housing association) or a housing cooperative, you must also sign an agreement with them. Contracts with utility providers such as the water company, the electricity supplier and the gas supplier must also be transferred to the new owner. If the flat comes from the secondary market, these steps are carried out on the basis of a handover report with the meter readings, which must be signed by you and the former owner.

And that is it, the flat you have bought is officially yours. But if you want to live in it comfortably, you still have a few important matters to deal with. More on that in the next article.