Purpose: purchase of housing
Terms and conditions
The dwelling to be acquired by means of the grant may not be owned by the beneficiary’s spouse, a direct-blood ascendant or descendant, sibling, half-brother or half-sister, adoptive parent or adopted child.
It is allowed to purchase the dwelling into the ownership of parents who are beneficiaries.
The dwelling can be acquired into the ownership of a child up to 15 years of age.
If the grant application was approved before the 2016 call for proposals and the guideline 2014-2015 therefore applies to the beneficiary, the dwelling may be acquired into the ownership of the beneficiary’s child up to 10 years of age.
In order to conclude a transaction on behalf of a minor, the consent of a court to the real estate transaction involving the minor needs to be submitted to the notary prior to the entry into the notarised contract for purchase and sale.
The desired dwelling must meet the objectives set out in the Guideline on Home Grant for Families with Many Children and improve the living conditions of the beneficiary and his/her household.
Having found a suitable dwelling, the beneficiary will seek the approval of KredEx for the acquisition, providing a description (the form is available here) and photos of the desired dwelling or, in the case of a dwelling offered via a real estate portal, the web address or expert assessment of the dwelling.
KredEx will give the beneficiary the consent to the acquisition of the dwelling or refuse consent if the desired dwelling does not meet the objectives of the grant (it is too small considering the number of family members, depreciated, needing overhaul, etc.).
The beneficiary is required to seek KredEx’s approval of the purchase of the desired dwelling even if the beneficiary intends to acquire the same dwelling that was indicated by the beneficiary when submitting the application. In this case, the beneficiary will send a free-form notice to KredEx.
Notarised purchase and sale transaction
Having received KredEx’s consent, the beneficiary will make an appointment with a notary for the entry into the transaction with the seller(s) of the dwelling and inform the notary of the grant.
At the request of the notary or the seller, KredEx will provide the notary with a written confirmation of the award and payment of the grant. The beneficiary will have to submit a corresponding application to KredEx, which may be sent by e-mail.
Then the beneficiary will conclude a notarised contract for sale providing for the rights in rem with the seller(s) of the dwelling.
To have the purchase price of the dwelling paid, the beneficiary will provide KredEx with the following:
1) a copy of the first transcript of the notarised contract for sale providing for the rights in rem;
2) the payment request (the form is available here).
The payment request has to be signed by one of the parents either digitally or in handwriting.
Disbursement of the grant
To enable the beneficiary to acquire the dwelling, KredEx will pay the grant in part or in total to the seller(s) specified in the notarised contract for sale within 10 business days and inform the beneficiary of the payment date. Notary fees and state fees are not covered by the grant.
The whole household must take the purchased dwelling into their use as a permanent residence of the household and obtain a corresponding registration in the population register within 3 months after the disbursement of the grant, unless the purchased dwelling needs renovation (improvement).
A report (the form is available here) on the use of the grant must be submitted within 30 calendar days of the date when the dwelling acquired by means of the grant was taken into use and registered in the population register as the residence of the household.