ArmInfo.Considering the unstable political situation and the fact that our compatriots have some concerns especially about buying an apartment and having loan obligations, today we will talk to Arthur Kocharyan, the head of Sales division of IDBank.
-The main question that we hear from those who want to purchase an apartment, is how can we be sure that the projects will be implemented and we will not have unfinished buildings and loss of money, as there are many cases when the buyers wait for their apartments for years?
Of course, it would not be right to deny that there are such risks, but they are manageable. Let me explain how: the entire amount of the provided mortgage loan is frozen in a special account opened in our Bank in accordance with the law, prior to receiving the final act of the building and issuing the final ownership certificate of the apartment to the buyer. This means that if the developer does not build the building on time or builds it with violations, and the buyer does not receive a 100% completion certificate, then the mortgage borrower has the right to repay the frozen amount in full repayment of the loan and take back the rest, thus having no other obligation to the bank.
I think the option of freezing mortgage loans by 100% is the most important factor that the client should pay attention to when buying an apartment. This insures him against the main risk and in case the construction works are not completed on time, he does not have to repay the mortgage loan, in fact not receiving an apartment in return. Moreover, it is important that the amount be frozen by 100%, so that in case the developer does not comply with the provisions stipulated in the contract, the buyer will be able to repay his entire loan.
-That’s a good solution, I’d say it’s perfect. But will there be developers in the Armenian market who will agree to sell the apartment on the condition of receiving the money after completion?
We prefer that developers. They construct the buildings by their means, at their risk, and not the buyers. This also speaks about the responsibility of the developer: in general, if the developer is ready to work under this condition, then the probability that he will not finish the building or resort to fraud is close to zero.