Registration of the act of reception-transfer of the apartment in a new building

The act of reception-transfer of the apartment is the main document recording the handover of an apartment in a new building to the ownership of the investor. This process makes it possible for the investor to verify that the property complies with the terms of the contract and the requirements of building standards. It is important to understand the procedure for issuing an act of reception-transfer in order to know how to protect your rights during this.

The essence and meaning of the act of reception-transfer of the apartment from the developer

The act of reception-transfer of the apartment is the main component in the process of acquiring real estate, regulating the transfer of ownership rights to housing from the developer to the buyer. This document is a necessary step for registering ownership of an apartment defining important aspects of the agreement between the parties:

1. Confirmation of transfer of ownership. The act records the fact of transfer of ownership of the apartment from the developer to the buyer, when the buyer becomes the official owner of the property.
2. Proof of the terms of the transaction. The act contains information about what conditions regarding the apartment were agreed upon between the parties, such as the price, terms, finishing, etc.
3. Compliance of the apartment. The investor has the opportunity to view the apartment before signing the act. This way they can make sure that the housing meets the terms of the contract and building standards requirements.
4. Certificate of no claims. If the investor has no complaints or additional requirements for the quality of construction or the condition of the apartment at the time of inspection, this should be certified by the act of reception-transfer. The form is signed by both parties.

So, the act of reception-transfer of the apartment is an important document that determines the legal status of the investor as the owner of real estate and protects their interests in the process of purchasing housing.

Reception of an apartment in a new building: main stages

Before signing documents and accepting the keys to a new apartment from the developer, it is important to conduct a detailed inspection of the property to make sure that everything complies with the terms of the agreement and construction quality standards. During this inspection and signing of the act of reception-transfer, several important steps should be taken into account:

• When inspecting the apartment, a representative of the developer and you, as the buyer or your representative, should be present with the appropriate document confirming your rights to this apartment. You can also invite a lawyer or family member for additional support and an unbiased evaluation of the condition of the apartment.
• Carefully inspect the apartment and check it for defects, damage or poor-quality work. Pay attention to walls, ceilings, floors, windows, doors, plumbing and electrical wiring.
• Check whether the condition of the apartment corresponds to the terms of the contract, in particular, check the price, terms, equipment, etc.
• If you find flaws or damage, be sure to record them in detail, take photographs or make a video recording.

Inspection report – checking compliance with documents

Checking the conformity of housing with documents is an important procedure in the process of obtaining a new apartment in a new building. This stage makes sure that your property meets the terms of the transaction and quality standards. Here you should follow a certain sequence of activities:

• Start with final inspection. You should make sure that all work agreed and specified in the documentation is properly completed. For example, check whether the apartment is plastered, the screed is cast, the door is installed, etc.
• It is also important to check the availability of all components and materials provided in the apartment. If the developer claims that they will be delivered later, this is contrary to the provisions of the act of reception-transfer of apartment. If you see any pieces missing, request their installation before signing this act.
• Checking the area of the apartment is also important. It must correspond to the dimensions specified in the documentation. If in doubt, ask for measurements to be taken in your presence.
• Take time over signing the act of reception-transfer if you have any doubts or unresolved issues. Demand that the developer corrects any deficiencies before signing the act. Remember that a signed act may complicate further efforts to eliminate deficiencies, so carefully check the property's compliance with the documents.

Performance quality: what is important to check

After you have convinced that the apartment complies with the terms of the contract and the act of reception-transfer, it is time to check the quality of the work performed. Carry out a thorough check so that in case of discrepancy you could file a detailed complaint against the developer. A sample check could be as follows:

1. Strength of plaster: run your hand over the plaster, it should not crumble or deform.
2. Slopes and joints: they should not pass the cold and have visible defects.
3. Doors and windows: make sure that the door and windows are installed properly and are free of visual and functional defects.
4. Equipment: check whether the equipment (plumbing, electrical appliances) corresponds to the parameters stated in the documentation.
5. Sockets, switches and wiring: be sure to check the operation of electrical points.
6. Tap water: check its quality, it should not have an unpleasant odour or taste.
7. Communications: make sure that communications (electricity, water supply, heating) work correctly.
8. Tiles and wallpaper: if the apartment is handed over from the developer with a fine finish, check the absence of cavities under the tiles and the wallpaper quality.

Fault detection report: what to do if you find a deficiency?

If during the inspection of a new apartment you discover deficiencies, faults or inconsistencies with technical documentation, it is important that you act carefully and consistently:

1. Postpone signing the act. If you have any complaints about the quality of work performed in the apartment or its technical characteristics, do not rush to sign the act of reception-transfer. Instead, you should probably consider filing a fault detection report.
2. Preparing a fault detection report. The fault detection report is a document in which the investor (you) lists all the defects and complaints about the apartment. This act is usually drawn up together with a representative of the developer. It describes all identified issues and inconsistencies in detail.
3. After drawing up a fault detection report, the developer has a certain period to eliminate the deficiencies. In case of refusal, they must provide an explanation of the refusal and instructions for further action.

Only after eliminating all faults and deficiencies, if you are convinced that your apartment complies with the terms of the agreement and quality standards, should you sign the act of reception-transfer. Remember that the signed act suggests your reception of the apartment without the right to further claims. In case of difficult situations or the developer’s refusal to eliminate faults, it is sometimes appropriate to contact an attorney or real estate specialist who will help defend your rights and interests.

Why do you need a fault detection report?

Fault detection report is an official document that is drawn up in the event that a real estate buyer (investor) is not ready to receive an apartment or any other property in the condition in which the developer or seller transfers it. This report contains a list of all identified faults, defects and non-conformities that the developer or seller must correct before the final transfer of ownership.

At the time of drawing up the act of reception-transfer, the developer or seller cannot refuse the comments and claims expressed by the buyer. However, the objectivity and validity of these comments is often assessed by an independent expert in order to avoid subjective disputes between the parties. Fault detection report helps determine the amount of work that needs to be done to correct deficiencies and sets a time frame within which this must be done.

How to draw up a fault detection report

The claim against the developer, a sample of which is given below, may differ in different countries as far as entering data form is concerned, but the main components should be as follows:

• object name: indicate the address of the apartment or building;
• reasons for drawing up the report: indicate that the act is drawn up after inspecting the apartment and fault detection;
• type of work that needs to be performed: provide a list of defects with notes, for example, deadlines for elimination;
• signatures of the parties: sign the report as confirmation that you pointed out the faults, and the developer’s representative or the seller took note of them.