Analyzing both my own experience of purchasing real estate in Ukraine and the experience of our clients I can say with certainty that the institution of brokers accompanying the buyer at the time of purchase of real estate, as a rule, is detrimental to the buyers themselves.
There is a certain paradox. On the one hand, the broker's commission (in most cases) is paid by the buyer, on the other hand, the broker is no less, if not more, than the seller is interested in making the deal happen, and therefore is fully on the side of the seller and indulges him in everything.
Accompanying our clients, we have repeatedly entered into heated debates with brokers who were very zealous in trying to convince our lawyers that there were no obstacles to conclude transactions even for real estate objects that had significant defects. Sometimes we were even offered additional remuneration for "convincing" our client in the purity of the legal component of the transaction.
Of course, if we are talking about the sale of real estate, which was acquired in a clearly fraudulent way or other illegal way, clearly conspicuous even to the average person, then large real estate agencies, such as "Blagovest" or "Park Lane", etc., will beat their chests, standing on the guard of the interests of the buyer, talking about their reputation, liability insurance and other nonsense. But on other documents, where there are certain problems or documents subject to proper execution, they may lie, moreover, they may try to convince you "that you should not pay attention to such trifles at all and you can close your eyes".
For such "competent" and "honest" brokers I have invented a very good test for decency: I offer to draw up a contract that he assumes material responsibility for all possible losses of the future owner. After the offer to bear real, not virtual responsibility, such brokers become more scrupulous in researching the "pitfalls" of the proposed property.
Moreover, we always recommend to be more attentive to the contracts on the basis of which buyers pay commissions, because even the largest agencies do not conclude direct agreements on payment for their services, and offer, taking advantage of a certain turmoil and nervousness at the time of the transaction and the transfer of large sums of money from the buyer to the seller, to sign agreements on the provision of information services to search for real estate, which, as it turns out, you provided not in the agency itself, and some entrepreneurs. All this is explained by good intentions - to save on taxes. But it is not easier for you, having concluded such an agreement, you only buy information, and in case of problems you are left alone with them: brokers, from the legal point of view, in the transaction did not participate, and just sold you the phone number of the seller, nothing more. In the worst case, the broker will call the investigator as a witness in criminal proceedings on the fact of fraud, which happens in 1 case out of 10000.
And now I want to draw the attention of future buyers to the main "pitfalls" that you may encounter, studying the legal component of the forthcoming transaction on the purchase of real estate:
1. Sale of real estate, the owner of which is a legal entity.
2. Sale of real estate by a trustee of the owner.
3. Sale of real estate whose title has changed hands more than once in the last 12 months.
4. Sale of real estate, the owner of which are residents of Donetsk or Luhansk region.
5. Sale of real estate that was under a lien that was removed by court order.
6. Sale of real estate, the title to which is established by a court decision.
7. An offer by the seller to conclude the transaction at a value underestimated by several times.
I will now discuss each item in more detail:
1. Sale of real estate, the owner of which is a legal entity.
At first glance in such cases there is nothing dangerous, but it is only at first glance. If with the owner - a natural person all is clear: there is a person, there is a passport and code + consent of the spouse - then you can go to the transaction, but with a legal entity everything is not so simple. It's all about POWER. It is necessary to thoroughly study: in whose authority is the decision to sell and, very importantly, at what price. Many brokers and even notaries will tell you that the extract from the register says it all: if there are restrictions on the powers of the manager/director, then you need to request additional documents, and if there are no such restrictions, then nothing additional is needed.