How to protect the buyer in a real estate transaction?

When purchasing an apartment or a house, a single signature can bind the buyer to obligations for decades. The question of how to protect a buyer in a real estate transaction does not begin at the notary's office, but already with reviewing the listing, the seller's representations, and the initial documents. In a sound transaction, the buyer does not rely on promises alone — it is essential that the agreed terms, verified facts, and payment conditions are set out in writing.

Buying real estate does not have to be a nerve-wracking process. Risks are generally preventable if sufficient time is taken before concluding the contract and if red flags are addressed calmly and systematically. The aim is not to distrust the seller, but to ensure that the buyer knows exactly what they are purchasing and on what terms.

Start with checking ownership and encumbrances

The first source to check is the land register. It reveals who is the owner of the immovable property and whether any mortgages, personal rights of use, servitudes, prohibition entries, or other encumbrances have been registered against the property or apartment ownership. For example, a property may be subject to a right of access in favour of a neighbouring property, or a mortgage in favour of a bank. These do not necessarily preclude the transaction, but the buyer must understand their actual effect.

In the case of mortgaged property, the notarial contract must clearly set out how and when the mortgage will be discharged. Typically, a portion of the purchase price is directed towards repaying the seller's bank loan, with the remainder paid to the seller. A mere assurance that the seller will "sort it out later" does not provide the buyer with adequate protection.

If the seller is married or the property belongs to multiple persons, it must be verified whose consent is required for the transaction. Even in a situation where only one person is recorded as the owner in the land register, the matrimonial property regime may affect the conclusion of the transaction. The notary verifies the prerequisites of the transaction, but it is in the buyer's interest to raise these questions well before the day of signing.

How to protect a buyer in a real estate transaction through the contract

The notarial contract of sale is the buyer's primary protective document. The notary explains the legal significance of the transaction and authenticates the contract, but the notary does not replace the buyer's separate legal counsel or technical expert. For instance, the notary does not inspect the building or assess whether the seller's description of the heating system, moisture damage, or quality of renovation corresponds to reality.

Everything material on the basis of which the purchase decision was made must be included in the contract. If the apartment is being sold together with kitchen furniture, appliances, a storage unit, a parking space, or a shed, this should be described with sufficient precision. The phrase "furnishings remaining by agreement" leaves too much room for interpretation later on.

The same applies to the seller's representations. If the seller states that the roof was recently replaced, that the underfloor heating works, that the construction works are lawful, or that the neighbour has no right of access through the yard, it is worth requesting supporting documents and, where necessary, including the relevant confirmation in the contract. It is much easier later to rely on a written agreement than to recall what the property listing or an oral conversation contained.

The contract should also clearly specify the time of handover of possession, the procedure for handing over the keys, and which meter readings are to be recorded. If the purchase price is paid before the handover of possession, the buyer must have certainty that the seller will transfer the property at the agreed time and in the agreed condition. Where necessary, a notary's escrow account may be used, under which the release of funds is linked to the fulfilment of agreed conditions.

Before purchasing, inspect not only the apartment but also the building

A buyer of an apartment is not only buying four walls. They become a co-owner in a building whose common parts, management, and future costs directly affect them. It is therefore advisable, before the transaction, to request from the apartment association or the seller information about the management plan, reserve fund, loans, outstanding debts, and planned works.

An apparently affordable apartment may entail a substantial monthly payment if the association has a renovation loan. Costly works may also be forthcoming in the near future, such as the repair of the roof, facade, plumbing, or heating system. Such circumstances do not automatically mean that the purchase should be abandoned. They help to assess the true purchase price and to negotiate a fairer price or terms.

Also check the utility bills from different seasons. Winter heating costs, electricity consumption, and any special charges often paint a more realistic picture than a single average figure quoted by the seller. If there are any outstanding debts in respect of the apartment, their nature must be established before the contract is concluded, and agreement must be reached as to how they will be settled. In the case of certain obligations, a new owner may find themselves involved in a dispute that could have been prevented by checking the documents.

Latent defects are not only a problem in older buildings

Property may present well on the surface, yet problems only become apparent during the first heating season or after heavy rainfall. Moisture, mould, a leaking roof, inadequate ventilation, unlawfully altered rooms, and a faulty heating system are typical causes of disputes. A newer property is not free from this risk — construction defects may also occur in a recently completed building.

The buyer should carry out a thorough inspection of the property, preferably together with an expert in the field of construction. This is particularly advisable in the case of a detached house, an older apartment, a renovated building, or a property with a complex heating system. The cost of an expert assessment may seem inconvenient before the purchase, but it can save a significantly larger repair cost and a subsequent dispute.

If a defect was known to the buyer before the transaction or was apparent with sufficient attentiveness, it will be more difficult to rely on it later. On the other hand, a mere contractual clause stating that the buyer has familiarised themselves with the property does not relieve the seller of liability. The seller must not conceal a material defect or provide misleading information about the property. Each case depends, however, on the nature of the defect, the parties' knowledge, what was agreed in the contract, and when the problem was discovered.

Do not pay for haste

A reservation agreement, an earnest money arrangement, and a preliminary contract can all be practical, but they must be read before signing with the same care as the final contract. It is particularly important to know what happens if the bank does not grant the loan, if the valuation report comes in below the purchase price, if a legal problem comes to light, or if the seller changes their mind.

The reservation fee should not remain a vague sum whose return becomes the subject of a later dispute. The document must set out the purpose of the fee, the deadline, the conditions for its return, and the obligations of each party. If the purchase is contingent on a bank loan, this must also be reflected in the contractual terms. Submitting a loan application is not yet a guarantee that financing will be obtained.

With regard to the purchase price, it is prudent to prefer a solution where the movement of funds is linked to the notarial transaction and clearly defined conditions of performance. Paying in cash or transferring a large sum before the documents, ownership, and contract have been reviewed may leave the buyer in an uncertain position.

Documents should be retained even after receiving the keys

A transaction does not always end with the handover of the keys. Retain the listing, correspondence with the seller, photographs, the handover deed, invoices, contracts, and all documents relating to the condition of the property. Should a dispute arise later, it may be precisely these that show what the seller promised, what condition the property was in, and when the defect appeared.

The handover deed should record the number of keys, meter readings, remote controls being transferred, documents, and visible defects. If any work or item is to be handed over at a later stage, set a specific deadline. A general promise to do something "at the earliest opportunity" does not protect the interests of either party.

If any point remains unclear before signing, it is wise to seek advice before, not after, the transaction. Eurocity Law Office can assist in assessing the terms of the contract, formulating the agreements necessary to protect the buyer, and clarifying which risks are real in a specific transaction. A document reviewed at leisure may prove to be the most valuable part of the entire purchase process.