Pros and cons and precautions of buying a house with a lump sum payment

Lump sum payment means that the buyer pays the house price in a lump sum within a certain period of time after signing the purchase contract with the developer (agreed by both parties in the contract).

Pros: Usually there is a discount for a one-time payment. Since a large amount of money can be transferred to the developer's account at one time, it is of great significance for the return of funds as soon as possible, so the developer prefers this method, and often gives buyers a certain discount.

Cons: This payment method requires the buyer to have sufficient funds to back it up, and it is difficult for most people to raise such a large amount of cash in a short period of time. And the risk of one-time payment is also very large, when the buyer gives all the money to the developer, it can be said that the initiative is no longer in the hands of the buyer, once the project is delayed or there is a problem with the quality of the house, the buyer is more passive.

Tip: A lump sum payment is for buyers who have sufficient funds and the developer is in good standing, preferably if it is an existing home. Even so, it is recommended that the buyer pay 90% of the total price in a lump sum and the remaining 10% at the time of occupancy, which needs to be agreed in the contract in advance.

Installment payments are generally made after a down payment of 20% to 30%, followed by payment as the construction progress of the project. It is usually divided into 3 or 4 phases, and about 70% of the house payment is paid when the real estate is capped, and the house payment in the last installment is generally less, and all the house payment is paid at the time of check-in. There are two types of installments: interest-free installments and low-interest installments.

Pros: Effectively solve the huge risk that needs to be taken when making a one-time payment. For off-plan housing projects, buyers can pay the housing payment to the developer in several installments according to the progress of the project image, and pay the final payment until the commercial housing is accepted.

Buyers can use the remaining unpaid installments to urge the developer to ensure that the house is delivered on time and in good quality. Compared with a loan, there is no need to pay more interest, and all you need to pay is the house payment.

Disadvantages: Although the payment was made in several installments, it still did not overcome the drawback of the need to raise a large amount of money in a short period of time. Under normal circumstances, a project is from the opening of the sale to the acceptance of occupancy, but in one or two years, even if it is paid in three or four installments, each installment has to pay more than 100,000 or more, the pressure is still very great, and there is usually no discount for installment payment.

Suggestion: Buyers who have a high monthly income, are unwilling to pay for anything other than the house payment, and do not agree with spending tomorrow's money today can consider choosing this payment method.

Pros: A lump sum payment to buy a home can get a bigger discount than a loan payment.

In fact, it makes no difference whether the loan is a one-time loan or a one-time loan.

It should be noted that it is necessary to check the procedures of the developer, whether the relevant documents are complete, whether the formal "Commercial Housing Sales Contract" can be signed, and pay attention to the contract conditions.

If you consider "discounts on payment methods" and "want to save interest on overpayments on loans", then choose a one-time payment.

The precautions for one-time payment for buying a house are: pay attention to your own purchase level and understand the local purchase policy; Pay attention to whether the property rights of the house are clear; Pay attention to whether the identity certificate of the buyer and seller is true and valid; Pay attention to whether the delivery of the house is in accordance with the agreement; Pay attention to whether the intermediary company has black-box operations, etc.

[Legal basis].Article 7 of the Administrative Measures for the Sales of Commodity Housing.

Commercial housing for sale shall meet the following conditions:

1) The real estate development enterprise of the commercial housing for sale shall have the business license of the enterprise legal person and the qualification certificate of the real estate development enterprise;

B) to obtain a certificate of land use rights or approval documents for the use of land;

3) Holding construction project planning permits and construction permits;

4) has passed the completion acceptance;

5) Demolition and resettlement have been implemented;

6) Water supply, power supply, heating, gas, communications and other supporting infrastructure have the conditions for delivery and use, and other supporting infrastructure and public facilities have the conditions for delivery and use or have determined the construction schedule and delivery date;

7) The property management plan has been implemented.

Legal analysis: 1. It should be clearly stipulated in the contract that if the loan is not successful, the contract must be terminated unconditionally and all the deposit and the paid housing payment will be returned; It is necessary to clearly agree on the specific time for the handling of the property right certificate, and at the same time to stipulate the liability for breach of contract if the property right certificate cannot be delivered on time; 2. Agree on the shelf life of the house and its ancillary facilities and the solution to the quality problems; Buyers can ask the developer to clearly write out the shared area and the area in the suite, and attach a plan drawing of the project's shared area; When signing a formal contract, make sure that there are no gaps in the contract.

Legal basis: Administrative Measures for the Sales of Commercial Housing

Article 3 The sale of commercial housing includes the current sale of commercial housing and the pre-sale of commercial housing. The term "commercial housing for sale" in these measures refers to the behavior of real estate development enterprises to give the buyer the commercial housing that has passed the completion and acceptance, and the buyer pays the house price. The pre-sale of commercial housing in these measures refers to the act of real estate development enterprises giving the commercial housing under construction to the buyer in advance, and the buyer pays the deposit or house price.

Article 4 Real estate development enterprises may sell commercial housing on their own, or they may entrust real estate intermediary service agencies to sell commercial housing.

Article 5 The construction administrative department is responsible for the sales management of commercial housing nationwide. The provincial and autonomous region people's construction administrative departments are responsible for the sales and management of commercial housing within their respective administrative areas. Municipalities directly under the Central Government, cities and counties of the people's construction administrative departments, real estate administrative departments (hereinafter referred to as the real estate development departments) in accordance with the division of responsibilities, responsible for the sales management of commercial housing within the administrative area.

Legal analysis: Precautions for one-time payment: 1. It should be clearly stipulated in the contract that if the loan is not successful, the contract must be terminated unconditionally and all the deposits and paid housing payments will be returned; 2. It is necessary to clearly agree on the specific time for the handling of the property right certificate, and at the same time to agree on the liability for breach of contract if the property right certificate cannot be delivered on time; 3. It is necessary to agree on the shelf life of the house and its ancillary facilities and the solution to the quality problem.

Legal basis: Civil Code of the People's Republic of China

Article 470:The content of the contract is agreed upon by the parties and generally includes the following clauses:

1) The names and addresses of the parties;

b) the subject matter; iii) quantity;

iv) Quality; 5) Price or remuneration;

6) the period, place and method of performance;

7) Liability for breach of contract;

8) Methods of Dispute Resolution.

The parties may conclude a contract with reference to the model texts of various types of contracts.

Article 500 In any of the following circumstances in the process of concluding a contract, a party shall be liable for compensation if it causes losses to the other party:

1) Conducting negotiations in bad faith under the pretext of concluding a contract;

2) Deliberately concealing important facts related to the conclusion of a contract or providing false information;

3) Other conduct that violates the principle of good faith.

Article 502:Contracts established in accordance with law shall take effect upon their establishment, unless otherwise provided by law or otherwise agreed by the parties.

In accordance with the provisions of laws and administrative regulations, if the contract shall go through formalities such as approval, follow those provisions. If the failure to go through formalities such as approval affects the effectiveness of the contract, it does not affect the validity of the provisions of the contract on the performance of obligations such as reporting for approval and the validity of the relevant clauses. If a party who should go through formalities such as applying for approval fails to perform its obligations, the other party may request that it bear responsibility for violating such obligations.

Where, in accordance with the provisions of laws and administrative regulations, the modification, transfer, or termination of a contract shall go through formalities such as approval, the provisions of the preceding paragraph shall apply.

Legal analysis: Precautions for one-time payment for buying a house include: pay attention to your own purchase level and understand the local house purchase policy; Pay attention to whether the property rights of the house are clear; Pay attention to whether the identity certificate of the buyer and seller is true and valid; Pay attention to whether the delivery of the house is in accordance with the agreement; Pay attention to whether the intermediary company has black-box operations, etc.

Legal basis: "Measures for the Administration of the Sales of Commodity Housing" Article 7 Commodity housing for sale shall meet the following conditions:

1) The real estate development enterprise of the commercial housing for sale shall have the business license of the enterprise legal person and the qualification certificate of the real estate development enterprise;

B) to obtain a certificate of land use rights or approval documents for the use of land;

3) Holding construction project planning permits and construction permits;

4) has passed the completion acceptance;

5) Demolition and resettlement have been implemented;

6) Water supply, power supply, heating, gas, communications and other supporting infrastructure have the conditions for delivery and use, and other supporting infrastructure and public facilities have the conditions for delivery and use or have determined the construction schedule and delivery date;

7) The property management plan has been implemented.