{"id":43743,"date":"2024-10-01T15:59:49","date_gmt":"2024-10-01T12:59:49","guid":{"rendered":"https:\/\/www.ekonomit.fi\/?p=43743"},"modified":"2024-10-07T16:13:07","modified_gmt":"2024-10-07T13:13:07","slug":"congratulations-on-your-new-home-key-considerations-for-real-estate-transactions","status":"publish","type":"post","link":"https:\/\/www.ekonomit.fi\/en\/blog\/congratulations-on-your-new-home-key-considerations-for-real-estate-transactions\/","title":{"rendered":"Congratulations on your new home \u2013 key considerations for real estate transactions"},"content":{"rendered":"\n

Buying a home is like a marriage<\/h2>\n\n\n\n

Feelings and perceptions often guide the home-buying process. Choosing a home isn\u2019t a legal procedure, but buying one is. When dealing with contracts worth hundreds of thousands of euros, it\u2019s essential to keep emotions in check – no matter how tempting the dream of that perfect man cave in the basement is.<\/p>\n\n\n\n

Purchasing an apartment (shares) and buying real estate are not identical in terms of content or regulation. They\u2019re clearly related, but still different. For simplicity, we\u2019ll refer to both as \u201creal estate transactions\u201d below.<\/p>\n\n\n\n

Preparations before finding a home<\/h2>\n\n\n\n

When preparing for a real estate transaction, it\u2019s a good idea to sort out your finances ahead of time. When you find your dream home, it\u2019s nice to be ready so that making an offer doesn\u2019t get delayed by loan negotiations, comparing banks, waiting for collateral, or waiting for loan approval in general.<\/p>\n\n\n\n

Sellers may not always accept conditional offers that depend on financing coming through. They\u2019re also unlikely to wait around for the buyer’s financial situation to be clarified if a faster bidder comes along. The loan process can take weeks, and sellers don\u2019t always have the patience to reserve the property for you during that time.<\/p>\n\n\n\n

Investigating the property\u2019s condition<\/h2>\n\n\n\n

Once you\u2019ve made an offer, withdrawing it is usually not possible without financial consequences, such as penalty fees or compensation. However, you can make a conditional offer. A conditional offer becomes binding if a specific requirement is met, such as securing finances or a satisfactory property inspection.<\/p>\n\n\n\n

Most inspections are done without looking into the structure, so issues hidden inside walls may remain undetected, although potential risks are often noted in the report. The inspection brings these risks to the buyer\u2019s attention, which could bind the buyer to investigate further. If the buyer is made aware of risks, it\u2019s assumed they will address them carefully. If the buyer doesn\u2019t request clarifications or follow up, it may be harder to later claim compensation for issues that arise. Property inspections are a double-edged sword.<\/p>\n\n\n\n

What should I do if there\u2019s a defect in the property?<\/h2>\n\n\n\n

Buying a home usually goes smoothly, but sometimes life throws unexpected problems into the mix. Small issues are almost inevitable, but not every problem entitles the buyer to compensation or a price reduction, let alone the right to cancel the sale. The defects must be significant and affect the property\u2019s value.<\/p>\n\n\n\n

If problems arise after the transaction, they should be assessed without delay. Filing a complaint (known as a notification of defects) is necessary to preserve the buyer\u2019s right to make claims against the seller. Acting \u201cwithout delay\u201d doesn\u2019t mean rushing, but it does mean avoiding unnecessary waiting. In court cases involving real estate disputes, one of the first questions examined is whether the buyer has lost the right to make claims due to a delayed or incomplete complaint, even before the actual defect is investigated.<\/p>\n\n\n\n

Dispute or compromise?<\/h2>\n\n\n\n

Even if the case seems clear, and your sense of justice suggests you\u2019ll win in court, litigation always carries risks. In an ideal world, the same set of facts would always lead to the same outcome, but that\u2019s not guaranteed. After all, court cases are settled by humans, with all their imperfections.<\/p>\n\n\n\n

When assessing the outcome of a dispute, it\u2019s important to consider not only the possibility of winning, but also the chances of partial success or losing entirely. Settling often leaves both parties with a slightly uncomfortable grimace on their faces, it\u2019s the compromise you make when you feel you\u2019re right. Think of it as a quick lesson in marriage: you might be right, but how sensible is it to argue endlessly about the cleaning schedule with your spouse to achieve the “ideal” result? Sometimes, vacuuming every other week helps life flow more smoothly. Settling isn\u2019t the goal, but a reasonable compromise can be accepted – a bad one, however, should not. You can\u2019t vacuum every day!<\/p>\n\n\n\n

What happens if there\u2019s a defect?<\/h2>\n\n\n\n

At the end of the legal process, the court may, at the buyer\u2019s request, order the seller to pay a price reduction, compensation, or even cancel the sale. A price reduction adjusts the relationship between the property\u2019s condition and the price paid. If the seller acted negligently or recklessly, the court may also award compensation. This could include costs beyond the property itself, such as expenses for temporary accommodation. Additionally, the court may declare the sale canceled if the defect is so significant that the deal cannot reasonably be upheld.<\/p>\n\n\n\n

In conclusion<\/h2>\n\n\n\n

Buying a home will likely go smoothly and without major issues, just like most marriages. There will always be a few bumps along the way, but in the end, it\u2019s rewarding. And even when there are things left to do around the house, you\u2019ll sip your coffee on the new balcony, watching the sunset together. Congratulations on your new home \ud83d\ude0a.<\/p>\n\n\n\n

Jukka Pasanen<\/strong>
The author is an attorney, Master of Laws, and Master of Economics from the law firm Jurentia.<\/p>\n\n\n\n

\"Jukka<\/figure>\n\n\n\n
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New member benefit: Legal support for personal and business matters from Jurentia<\/h2>\n\n\n\n

As a member of Suomen Ekonomit -Business School Graduates Finland- you can get legal assistance from Jurentia on both private and business-related legal matters.<\/p>\n\n\n\n

Member benefits:<\/strong><\/p>\n\n\n\n