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Preconstruction Real Estate ?
| Real Estate Preconstruction FAQ |
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| Written by Panama Real Estate |
Preconstruction Real Estate Questions and AnswersShould a buyer use the services of a realtor when purchasing preconstruction properties? Yes, a realtor has relationships with developers that can be quite beneficial to the buyer. He/she can negotiate the terms of the contract for you and advise you on the best course of action depending on your needs; (the developer may not since it?s not always in their best interest to do so), the realtor may know some vital information regarding the financial status of the developer. The realtor is also in a position to inform you when new pre construction opportunities arise before they are even made public. This means the buyer may have an exclusive opportunity to get in on the ground floor of pre construction prices. Your realtor will find out information about the pricing in similar buildings being built in the neighborhood along with information about civic and cultural developments. Furthermore the developer compensates the realtor, so in effect you are getting the services of the realtor for free. Since the purchase price of the property is the same with or without a realtor it makes sense to have a person who is not just a real estate agent advise you, but a real estate consultant. What it the PRE SALE REQUIREMENT? Most construction lenders (Banks)require to the developer to sell 50% of the building in order to give them the loan. Pre-selling of buildings and resort condominiums has become a standard process, and virtually every condominium is pre-sold today. Once the required pre-sales have been reached and construction has begun it is a sure sign of a successful development. As a purchaser what protection do I have buying a pre-sale? While I can't speak for every location in the country, here in Florida the purchaser of a pre-sale condominium is protected in several ways. The most important protection under Florida law is your money or deposit is held in escrow until the condominium is completed and only released at a proper real estate closing where the unit is transferred to you unless the developer specifically indicates in the contract that a portion on the deposits will be used for construction. What is a Public Offering Statement? A Public Offering Statement includes condominium documents, association by-laws, and the pre-construction purchase and escrow agreement. Under Florida law, purchasers have fifteen (15) days from receipt to review and complete or rescind any pre-sale purchase and escrow agreement. Why buy a pre-sale when I can buy one already completed? Two basic reasons: (1) Limited location and availability. (2) By purchasing at pre-sale you are able to buy at a reduced price, and coupling this with the appreciative expectations upon completion makes it a very wise investment. Many people have purchased pre-sales for reason number 2, and many of these people have sold their units even before the building is completed. How much money do I need to contract a pre-sale condominium? Usually 20% down. 10% at contract and 10% at ground breaking Can I sell my pre-sale purchase before completion? Yes you can with a written permission from the developer Thank your for your time, and we look forward to a long and profitable relationship with all of our clients. For more information on upcoming pre construction projects and how to invest in them, please feel free to contact us . |
Panama Real Estate News
| What Your Dollar is Really Worth in Panama and China |
Today's comment is by Chuck Dolce, senior writer for The Sovereign Society, former broker and member of the Chicago Mercantile Exchange for nearly 17 years, where he specialized in stock index and short-term interest rate futures. He's been on location in Panama, reporting from our 2008 Total Wealth Symposium. It's Saturday in Panama and the last day of the Sovereign Society's Total Wealth Symposium. Markets are closed and other than some weekend oil posturing, there's not too much in the news. So while most of the conference has been focused on making and protecting money - I haven't said much about the country of Panama itself. So if you'll indulge me... |
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