Common mistakes when buying a property and how to avoid them

Purchasing a home or investment property is one of the most significant financial decisions you will make. Along with the excitement, however, there are real risks if the process is not properly structured. To protect your capital in the long term, it is necessary to understand both the market environment and the legal and financial specifics of the deal.

In this article, we will tell you about the most common mistakes when buying a property and how to avoid them.

Legal mistakes when buying a property

Legal clarity is the foundation of every secure deal. Underestimating it can lead to serious financial and legal consequences.

Insufficient ownership verification

One of the most common mistakes is failing to check whether the property has mortgages, liens, or other encumbrances. If the property is burdened, you risk acquiring a property with obligations or becoming involved in legal proceedings.

It is also important to establish whether the seller is the sole owner and whether there are heirs or co-owners whose consent is required.

Incorrect recording of the sale price

The practice of recording a lower amount than actually paid in the notarial deed carries a serious risk. In the event of a court annulment of the deal, you will only have the right to receive back the officially recorded amount.

All payments outside the contract remain without legal protection.

Unprofessionally drafted preliminary contract

The preliminary contract defines the rights and obligations of the parties. Using template forms often misses key clauses – deadlines, penalties, specific property parameters. Lack of clarity in the contract can lead to disputes and financial losses.

Professional legal review and properly prepared documents are the safest protection for you as a buyer.

Financial mistakes and improper budgeting

Financial planning is not limited to having the funds for the purchase price. It includes careful assessment of your long-term commitments, the monthly loan installment, and all accompanying costs of the deal.

Paying a deposit without mortgage approval

Many buyers pay a deposit before having written approval from a bank. If financing is denied or the property appraisal is lower than expected, you risk losing the amount paid.

Overestimating your own capabilities

Emotional attachment to a specific property can push you to take on excessive financial commitments. If the monthly installment exceeds 30–35% of your income, the financial risk significantly increases.

Underestimating additional expenses

Transfer costs often reach 7-8% of the property's value and include:

• local tax – payable to the respective municipality upon transfer of ownership;

• notary fees – paid for notarizing the deal;

• registration fee – covers the registration of the deal in the Property Register;

• broker commission – remuneration for mediation and full assistance with the deal;

• bank fees and insurance – costs for property appraisal, loan issuance, and mandatory insurance.

If not planned in advance, these expenses can create serious pressure in the final stage of the deal.

Mistakes when inspecting the property itself

The exterior often creates a misleading sense of security. Behind a well-done renovation or modern interior, there may be structural problems, worn installations, or future expenses that are not visible during the first inspection.

Ignoring the location

It is important to analyze the infrastructure, transport accessibility, and future development plans in the area. A property that seems quiet today may be located near a future construction project.

Lack of inspection when buying "off-plan"

Buying under construction requires careful research of the investor and builder – completed projects, financial status, and adherence to deadlines. Check the building permit and all project documents.

Incomplete technical inspection

Besides ownership documents, you must ensure there are no discrepancies in the area, missing cadastral documents, or technical problems. A professional inspection by a specialist can save you future repair costs.

How to avoid these mistakes?

A structured approach significantly reduces risk, including the following:

1. Conduct a full legal check – including issuing a certificate of encumbrances and checking the property's history

This guarantees that there are no hidden risks such as mortgages, liens, or ownership problems.

2. Secure bank approval in advance – before paying a deposit

This way, you will be sure of the actual budget you can use and avoid the risk of losing the deposit if financing is denied.

3. Plan your budget realistically – including all accompanying expenses

Include local tax, notary fees, registration fee, commissions, and bank expenses in advance to avoid pressure at the end of the deal.

4. Have a technical inspection by a specialist – to avoid hidden defects

A professional assessment can reveal problems with installations, structure, or moisture that would otherwise lead to significant repairs.

Investing in professional assistance from the beginning can save you serious financial and legal problems in the future.

Conclusion

Buying a property requires a careful balance between emotion and rational analysis. Hasty decisions, incomplete checks, and underestimating costs are among the most common reasons for unfavorable consequences.

With the support of Stonehard Premier, you can go through the process in a structured, secure, and informed way, minimizing risks and protecting your investment.

Key takeaways

To protect your interest as a buyer, it is important to follow several basic principles:

• legal verification is priority number one;

• the actual sale price must be recorded in the notarial deed;

• transaction costs (7-8%) must be planned in advance;

• do not pay a deposit without confirmed bank financing.

Following these rules significantly reduces the risk of financial losses and ensures a calmer and safer transaction.

FAQ – Frequently asked questions and answers

Why is it risky to buy a property "off-plan"?

The risk is related to delays, changes in quality of execution, or financial difficulties of the builder.

How to check if a property has encumbrances?

By issuing a certificate of encumbrances from the Registry Agency.

How long does the legal check take?

Usually between 5 and 10 working days, depending on the complexity of the case and the speed of the institutions.