It is not always easy for the buyer to understand the terms in the home listings. JCat Real Estate will explain how a direct deal differs from an alternative deal and help you make your choice.  

In search of the ideal option for an apartment or house, buyers often pay attention to the features of the object itself, rather than a description of the type of transaction. At the same time, the type of apartment sale largely influences the terms and conditions of the contract and determines the buyer's risk. 

There are three main options for transactions in the purchase and sale of real estate:

direct (free) - a simple sale option;

alternative ("alternative") - a complex type of transaction in which several types of real estate and several people are involved;

chain - several "alternatives" that occur simultaneously.  

According to experts, in Russia more than 70% of real estate transactions take place according to an alternative scheme. This is due to the fact that few people can afford to simply sell their homes without purchasing other living space in return. That is, in fact, in most cases, residents of Russia "change" apartments and houses for other real estate objects - this is exactly what the alternative sale of an apartment allows. 

Free (direct) deal

This type of buying an apartment or house is possible if the seller has another home. In this case, he simply sells the object and takes the money that the buyer gives him. A direct deal is a great option for both parties, as they are then independent of third parties and other entities.

As part of such a transaction, the buyer transfers funds directly to the seller, and in return receives ownership. 

There are criteria by which the free sale of an apartment or house is determined:

at the time of signing the contract, the object must be free;

according to official documents, there should be no registered tenants on this living space;

when signing the contract, the seller must indicate another place of residence;

the buyer can settle in immediately after signing the contract.

Ideally, the apartment should not have any encumbrances , but the presence of such circumstances does not make an alternative deal out of a direct deal - in this case, the type of restrictions is simply indicated.

Pros of a direct deal:

Speed. Since the apartment and money are ready, you can conclude a contract in just a couple of weeks.

You can issue a standard deposit. This will be enough to secure the right to purchase.

Minimum risks of "failure" to sign the contract. The deal depends on only two people, so the likelihood of trouble during its conclusion is minimal.

But even this seemingly ideal option has its drawbacks:

The temptation to refuse the services of a realtor and not cope with the verification. The simplicity of this transaction can be deceiving - for example, one of the tenants may be registered in the property, or the apartment may have a minor owner. It can be quite difficult to check such nuances on your own.

High price. Apartment owners understand that people are willing to overpay to get real estate "here and now". This is the reason for the high price tags for objects.

The likelihood that the direct sale of an apartment will be a disguised alternative. Sellers often imitate a free sale, although they themselves do not own additional living space. When the buyer agrees to such conditions, sellers begin to quickly look for a new home and delay the conclusion of a deal under any pretext.

Of course, this type of deal has much more advantages, and with a competent approach, all the Real Estate Agent in Minto disadvantages can be prevented. But in practice, "clean" apartments are very rare, since few people can afford to keep a living space as a financial asset. Often, buyers who were initially set up for a free deal, after a long search, still agree to an “alternative”.

Alternative deal

The main feature of the "alternative" is the goals of the seller. In this case, he needs not only to sell this object, but at the same time to look after and buy for himself new (alternative) housing with the proceeds, otherwise he will simply have nowhere to live. 

If, at the same time, another seller also has an alternative sale of an apartment, then this variant of events is called a "chain of alternatives".   

In such a situation, all participants are dependent on each other: until the buyer gives the money, the seller cannot buy a new apartment. At the same time, until the owner of the apartment for sale finds a new version of the living space for himself, he will not be able to move out of this object. 

"Alternative" assumes that two contracts are signed at the same time - this is an important condition for the transaction to take place. 

The main parties to such an agreement:

the buyer of the first apartment;

the seller of the first apartment, at the same time he becomes the buyer of the second (alternative) apartment;

the seller of the second (alternative) apartment.

Such a transaction is rightly considered more complicated and risky, and the more participants and apartments get into the transaction, the more thorough preparation the event requires. Also, the difficulty lies in the fact that with a chain of alternatives, one of the participants can suddenly “change their minds” and disrupt the deal for all other buyers and sellers.