The real estate finance expert and former banker, Suhail Asiri, gave advice to those who are about to buy a property.
Asiri mentioned that a lot of what is going on in the councils talk about real estate and bank financing without sufficient experience in answering this, even that some service providers in the financing agencies do not answer the question adequately because of the lack of loss of the customer and that the people who are about to buy the property may be ignorant Some financial matters or the amounts required to be paid before the property is emptied, or even with the guarantees required to be requested by the seller of the property, or in the event that there are basic defects in the property after emptiness, who bears them.
He explained that everyone who wants to buy a property must have sufficient knowledge of some financial matters.
He said: “For example, but not limited to, it is required to pay the value of the advance payment, which constitutes 10% of the value of the property and is deducted from the value of the financing. Providing an advance payment of 100,000 riyals.
He added: “Real estate disposal tax, which constitutes 5% of the value of the property, is required. If the customer’s first home is covered by less than one million riyals from the state, and more than that is borne by the customer, i.e. for what is higher than the value of 1 million riyals.”
He continued: “For example, if a person buys a property worth one million and 200 thousand riyals, the amount that must be provided by the customer is 10 thousand riyals over the amount of 200 thousand riyals, which constitutes 5% of the value of 200 thousand riyals.”
And he continued: “The administrative fees, which constitute 1% or 5,000, whichever is less than the amount given to the customer, and some financing agencies in personal financing take administrative fees and sales difference fees, and the amount exceeds more than 5,000 riyals. At this point, we touched on personal financing because most customers need financing.” to be a down payment for real estate financing.
Fourthly, he added: “The real estate appraisal fees here vary from one financing agency to another, and range from 1400 to 2000 riyals, according to the financing agency’s policy.”
Fifthly, he clarified that the real estate broker’s bid amount is required, which constitutes 2.5% of the value of the property, and it is by agreement between the seller and the buyer, and most of it is owed by the buyer.
He pointed out that if the property is a residential land, “not every land is accepted through the financing agencies except after obtaining the minimum requirements of the property, for example, but not limited to, the streets are asphalted, and that the plan is connected to electricity, and some financing agencies do not accept the purchase of residential land until If the minimum requirements for the property are met.
And he continued: “For example, but not limited to lands that are abandoned or unapproved plans, here are the amounts that must be paid before emptying the property in the event of purchase by financing agencies: the advance payment is 30% of the value of the property and the real estate disposal tax is 5% of the value of the land Residential, administrative fees, real estate appraisal fees, and the quest amount is 2.5% of the value of the property.
And he went on to say: “To know your right regarding the basic defects after emptying, for example, but not limited to cracks in the property or subsidence in the enclosures, or basic problems that greatly reduce the value of the property. Who is responsible for these repairs? .”
And he continued: “At the beginning, you must know the types of contracts currently in use in the financing agencies, which are Murabaha and Ijara, and you must know that there are many formulas in real estate financing, such as Istisna’a, Tawarruq, and other contracts, but we will focus on the types that are popular with financing agencies, which are Murabaha – Ijarah.”
And he continued: “If the real estate is in the form of a lease, then the basic defects in the real estate are borne by the financing entity, since the real estate deed is in the name of the financing entity or one of its subsidiaries.”
He added: “But if the instrument is a Murabaha, these defects are borne by the buyer, since the instrument is in the name of the buyer, but it is mortgaged to the financing entity until the full value of the financing is paid and the mortgage of the property is released, but there is a way for the previous owner or seller to bear these defects, but we recommend starting Negotiating and informing the previous owner and resolving it amicably.
He indicated that if there was no response, it would be as follows:
1- A request to prove the condition of a property is submitted to the court. It is considered an urgent case and is decided upon within a week. A real estate expert is delegated to inspect this property and issue a report of the basic defects. This report is delivered to the judge in the court.
2- A session is set for this case and a judgment deed is issued by the judge.
3- According to the judgment deed, a case is filed against the former owner or the former seller with the court, and in the event that the judge requests between him, the deed is presented and the case is decided.
