Liability for breach of contract
It is worth noting that apartments in Sochi today are sold on the basis of a share participation agreement or a regular sale and purchase agreement, so such problems usually never arise. However, in the secondary housing market, such a situation can be encountered quite often.
To preliminarily secure a contract, it is common practice here to make a deposit and record it in writing. By making a deposit, the buyer ideally should receive a guarantee that the property will not be sold to someone else. The seller, upon receiving the deposit, feels at ease and is not afraid that the buyer will disappear, refusing to complete the transaction.
The deposit will remain with the seller if the transaction falls through due to the buyer. However, if the seller is at fault for the collapse of the transaction, they will have to pay the buyer double the deposit – so says the law. Thus, today a deposit (notarized) is one of the most reliable guarantees of a successful transaction for both parties.
Can you buy an apartment in a new building in Sochi with a deposit?
If the apartment is purchased from a developer, a deposit as a guarantee is not needed – the transaction is documented, and for most companies this is sufficient. However, you may still come across a situation where apartments in Sochi from a developer are sold with a deposit requirement.
The purchase of real estate with a deposit is described in the Civil Code of the Russian Federation. Here too is the definition of a deposit as a guarantee. It is always expressed in a specific amount of money that the buyer transfers to the seller as confirmation of their good faith in concluding the transaction. Subsequently, the deposit amount must be included in the full cost of the housing.
To protect against fraud, the transfer of money must be documented. This can be one of the clauses in the sale and purchase agreement or a separate document as an appendix to the main contract.
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