Property Barter

What is bartering? The literal meaning of bartering is equality which is used in various transactions and exchanges especially property transactions. In the past when paper money or bills were not invented, people used the so-called method of exchanging goods for goods for their transactions and exchanges, it was also called galloping. They say exchange or exchange.

Property Barter

What is bartering?

The literal meaning of bartering is equality which is used in various transactions and exchanges especially property transactions.

In the past when paper money or bills were not invented, people used the so-called method of exchanging goods for goods for their transactions and exchanges, it was also called galloping. They say exchange or exchange.

 

Why bartering?

The property bartering method has many advantages over the cash purchase or sale of the property which is called a win-win transaction.

Today due to the large increase in the value of real estate as well as the lack of liquidity and existing banking and legal restrictions on bank transfers of high amounts and strict tax laws, owners have more incentive to exchange or barter their property which this method causes no need for transferring large amount of money.

 

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Inflation, extreme fluctuations in property prices and the daily decrease in the value of the Iranian currency led to the owners are afraid of the fluctuation of the period between the sale of the property and the purchase of a new property. They do the process of finding customers, selling property, looking for the desired property and actions in this direction is a very time-consuming process that sometimes takes more than a year and during this period of time, there is a possibility of any random events which in the case of bartering property, the transaction activity is done faster and it requires spending much less time from each of the owners or parties of the transaction.

In carrying out cash transactions usually due to the difficulties of moving high amounts, there is the possibility of any fraud or problems that lead to legal proceedings which is a very time-consuming process and sometimes it takes several years. In the bartering method, the owners will proceed with the related transaction with more confidence.

Real estate exchange or barter despite having many advantages may involve risks or disadvantages for each party which are usually caused by lack of knowledge of real estate laws which can be offset by help and presence of trustworthy and expert in real estate legal matters and writing the contract correctly to prevent such problems and proceeded with more confidence in bartering.

 

Why bartering

In order to carry out a real estate transaction in the form of bartering, the agreement of the parties to the transaction is required first.

After the agreement parties to carry out this transaction and after seeing each of the parties and confirming the transaction property, each of the properties is valued by a certified expert and the transaction parties are present in one of the offices of a reputable real estate agency that has accurate legal information regarding property bartering and transactions, they should write agreements or entrust all their activities to their trusted legal real estate advisor from the beginning.

If the bartering contract is drawn up in the office of a legal and valid real estate agency, all the ownership documents of each property, the identity of the owners of the contracting parties, and other items required to complete the transaction are examined by the relevant expert, and if there are any problems or errors in the writing, they will prevent writing of the contract.

Note: In order to enter into a bartering contract like other legal real estate contracts, instead of the owner, the presence of one of the people specified by the law as the owner's successor or the problems that the owner may have which is included in the article of the parties to the detailed transaction, the barter contract can be done..

 

Should the exchange only take place between two properties?

Bartering may be done from any movable or immovable property but in connection with property bartering, one property may be exchanged with several other properties or with real estate, a car, gold coin or shares of a company or project or movable or other items.

It is possible that the value of the two properties being bartered may not be the same, in this case, according to the agreement of the parties to the transaction, the difference in the value of the property is in Iranian Riyal or the price is agreed based on the needs and requests of the parties to the transaction which is also known as bartering sale.

 

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Types of bartering:

The types of bartering are: simple bartering, construction bartering, forced bartering, settlement bartering, judicial bartering, contractual bartering and special bartering.

 

In the bartering transaction which of the party will benefit and which one will lose?

If the valuation of the property and property of the parties is done intelligently and fairly by the relevant expert, the transaction will be beneficial for both parties and each of the parties will benefit according to their needs and use their purchased property in a beneficial way.

 

Is there a possibility of fraud in bartering or exchange contracts?

In the contract of bartering, like other contracts, fraud can be done in various ways. The most important of these is the act of setting up the contract in unofficial and illegal real estate offices as well as the presence of an illegal lawyer with fake and unverified documents.

Therefore the most important factors when concluding any contract is first to ensure the authenticity of the desired real estate office and then to view the property and to check and inquire about the background and authenticity of the real estate documents and the identity of the owner or owners of the real estate, then to adjust the clauses of the contract.

 

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Be careful that any written contract (even a contract without a tracking code) must be stamped with the official seal of a licensed legal real estate consulting office and if it does not have the official seal of a legal real estate consulting office, in case of problems and the need to follow up through the authorities judicially, proving the authenticity of a contract is very difficult and sometimes impossible.

In some cases, the borrower's property whose deed is mortgaged by the bank may be traded or bartered. In this case, the amount and repayment of the loan and its conditions should be inquired from the relevant bank and the full conditions of the loan and information should be noted after checking the conditions of acceptance of the buyer, proceed to enter into a contract and deal with the borrower's property.

 

How is the real estate consultant's commission calculated in bartering contracts?

In making transactions using the bartering method, in fact, the percentage of the real estate consultant's commission is calculated and paid between the parties of the transaction in relation to the value of the properties involved which is called the transaction price.

 

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Bartering is exchange of movable or immovable property with each other, for the exchange of property with money and based on the rational valuation momentarily, the properties is exchanged with each other in a way that is beneficial for each of the parties to the transaction. This contract may be for the builders through the bartering of the unit with building materials or raw materials for building construction.

 Translator: Mr saman sayah