Legal advice

Are there any risks when selling real estate in installments? The buyer offers to make a down payment, and then pay a certain amount monthly. What happens if he stops paying?

27.02.2023 Aleksandrs Koposovs, the member of the board

If ownership is not transferred to the buyer, i.e. if the request for corroboration of property rights is not signed, then the risk of not receiving payment is minimal. But when you sign a request for corroboration of property rights and transfer ownership rights of real estate, you may not receive payment and lose the object of purchase. The seller will only have the right to claim the remaining part of the payment, which he will be able to complete only through the courts. It is not a fact that the court decision will be executed if this person has no property after the decision is made.

It is possible to pledge this property as a security for the fulfillment of obligations to pay in installments (mortgage). In this case, if there are unfulfilled payment obligations, it is possible to sell the mortgaged property at an auction and repay the debt from the funds received from such a sale.

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