Buying and Selling A Room And A Share In A Mortgage

Today we are going to look at some features of buying and selling a room and a share in a mortgage

There are times when you need to buy or sell not an entire apartment, but a share or a room in it.

Let’s figure out what is the difference between these concepts, and what are the features of such transactions.

What is “room” and what is “share”

A room is a dedicated part of an apartment, a room with certain square meters and a separate cadastral number.

A share is not part of an apartment, but part of the ownership of it. Usually, the fraction is determined by the fraction.

Features of the deal with room and share

Preferential purchase right

One of the main features of transactions with shares or rooms is the pre-emptive right to purchase.

The bottom line is that if you want to sell your share or a room in an apartment, you must first offer to buy it out to the owners of the remaining shares or rooms. If you do not do this and sell the property to strangers, such a transaction can be invalidated. The apartment has two rooms and two owners –

For instance, to persons, Steve and Gerald want to sell his room and offer to buy it to Steve. But for any reason Steve refuses, then you need to get from him a notarial waiver of the pre-emptive right to purchase. If Steve does not want to write a refusal, then Gerald can send him a statement of intent to sell his room through a notary. And then get again from a notary a certificate of the transfer of the application. It will indicate the response received or it will be written that no response has been received. In this case, Gerald can sell the room to anyone, at his discretion.

Transfer of real estate as collateral

When buying a share in a mortgage, it is required to pledge not the rent share, but the entire property as a whole. The rest of the participants in shared ownership must also formalize their shares as a pledge of the bank. Moreover, this must be done before issuing a loan.

When owners of a share do not agree

If the other owners of the shares do not agree to issue their shares as a pledge, then some other real estate can be provided as security. In this case, the share that is being bought does not need to be pledged to the bank, since the loan will be secured by another property. The collateral for it must be formalized before the loan is issued.

Risk associate with selling secondary real estate

There are some obvious risks invoved in selling real estates and you need to them and also what to do to minimise them. what risks there are when selling secondary real estate and how to safely exchange an old apartment for housing in a new building at minimal cost therefore become important for a successful transaction.

Obviously, if there are no questions with the purchase under the preschool educational institution, the sale of an old apartment without the involvement of a professional agent takes a lot of time and effort, and in some cases, it can even result in significant financial losses. What is the difficulty of selling “secondary housing”

Most of the transactions in the secondary real estate market are complex. This is a whole chain of sales and subsequent purchases. These are deals with apartments in which there may be minor children among the owners, deals with housing that was purchased with the help of subsidies or mortgages and is still pledged by the bank.

The correct appraisal of real estate is also important: you need not sell cheap and at the same time not overcharge the price so that the sale does not stretch out for several years. In addition, when selling an apartment on your own, questions of legal security and payment security always arise. It is not so difficult to find a buyer, how to carry out a deal correctly afterward.

The main risks

In case of legal errors in the execution of documents, the transaction may be invalidated. The same result awaits the seller when submitting an incomplete package of documents. At the same time, you will not be able to return the funds spent in the registration process.

Financial risks. 

If you choose the wrong payment method and incorrectly register this clause in the contract, the buyer may simply not pay for the purchase after the transfer of ownership.

Tax costs. 

In some cases, they can be excluded with a competent approach to the deal. For example, if the apartment being sold is owned for longer than the minimum tenure period (depending on the situation, 3 or 5 years), no income tax will be charged. Sometimes it is more profitable to postpone the purchase for a couple of months in order to save on personal income tax.

Possibility of claims regarding the quality of the sold apartment. The buyer has the right to present a claim within the required time frame from the date of transfer of rights, even if he previously accepted a home that does not comply with the terms of the contract. In this case, the seller may be required to pay monetary compensation or even terminate the transaction.

How to avoid risks

The easiest way to ensure the security of the transaction and save time is to contact real estate agents. As a rule, specialists are ready to offer a full range of services – to find an apartment, prepare documents, register property, and take from 3 to 6% of the contract value for their work. 


The services of professionals are highly required during the sale of a house to minimize the risk and legal errors that are common during the sale of properties. The professional or real estate agent if engaged for the sale will do the necessary appraisal of an apartment, its pre-sale preparation, advertising placement, search for a buyer and displays at a convenient time, legal support of the transaction, and control over the implementation of mutual settlements. 

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