The real estate sector is very broad and it involves different professionals whose functions, although different, can be confused.
When it comes to selling or buying a house, and especially in the second case, it is important that you know what the role of all of them is and what their function is to know who and where to turn.
Promoters, construction companies and real estate: how they differ
Generally speaking, the difference between a developer, a construction company and a real estate company is the role they play in the construction and sale phase of a property, which we can divide into three:
When carrying out a construction project (a block of flats, urbanization or a group of single-family houses), it is necessary to own the land where it will be developed, and this is usually the exclusive property of a real estate developer.
Afterward, it is necessary to execute the said project, that is, build it. This is where real estate builders come into play, with a whole series of associated professionals (bricklayers, farmworkers, electricians, plumbers, etc.).
Sale of homes
Finally, and once the houses are built, it is time to market them to recover the investment. This is where real estate companies come into play.
However, it is true that, on certain occasions, especially when we talk about large corporations, some companies have their own promoter, their own construction company and even a wide network of commercial offices that work in association, which can lead to confusion.
Obligations and responsibilities of real estate developers
Real estate developers are entities that have the initiative to promote the construction of homes for their subsequent sale, which is why they are present in all phases of the construction process.
Real estate developers have the power to decide, drive, plan and finance a new building, and they are also in charge of promoting all the resources to carry out a construction project, from buying the land to getting the money to execute it.
On many occasions, the promoters are associated with prestigious construction companies to strengthen the project and help market the product. In fact, although many times it is the promoters who invest money through loans from banks, other times they look to third parties to obtain financing and/or opt for off-plan sales, which is an advance of liquidity.
When we want to buy a house off-plan or when we consult with a developer, it is very important that we inquire about their financial support, because it is what will give us guarantees.
Some of the tasks of real estate developers are:
- Find the plot or land to build.
- Commission the project to a team of architects.
- Prepare all the documentation that the project requires.
- Obtain building licenses, authorizations and administrative permits, etc.
- Contract the corresponding insurance (civil liability insurance, property damage insurance and surety insurance)
- Finance the project.
- Supervise the construction.
- Search for buyers and/or commercial agents.
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From the legal point of view, the figure of the real estate developer (as a physical or fiscal subject) is subject to Law 38/1999, of November 5, on Building Planning. This Law regulates the obligations and responsibilities of each party involved in a construction project to ensure ” the quality of the finished product and the adequate protection of the interests of the users.”
According to this law, the promoter assumes the civil liability of all the agents involved in the real estate project, and is responsible, for 10 years, for material damage caused in the building “due to vices or defects that affect the foundation, supports, beams, floors, load-bearing walls or other structural elements”.
In short, this means that the developer must guarantee to the owner that, during the legal period of time, any material damage due to a defect in performance will be fixed or that he will receive compensation instead.
On the other hand, the developer has the obligation to deliver to the future owner all the documentation of the work executed or any other document required by the Administration for the mortgage application, to register basic services, etc.
What is the role of real estate agencies like Sky Marketing in the sale of homes?
Real Estate Agencies (or simply real estate) are companies that are in charge of selling properties, looking for buyers or acting as intermediaries between a developer and its buyers.
The main objective of real estate companies is to establish the best strategy to sell homes, usually through marketing and recruitment actions, both from individuals and developers.
One of the great advantages of having for this work is that our collaborators and employees know perfectly the market situation, and are able to offer each client the type of home they need or that best suits their profile, budget, etc.
The real estate agencies are in charge of showing the house, managing the information related to it, the purchase and sale paperwork, evaluating the situation of the real estate market and agreeing on the conditions with the owners, in addition to advising their clients.
Thus, from nova city Islamabad, different functions are carried out, which we can include in three large groups:
- Administrative functions. Drafting of contracts, search for legal representatives, information on rights and obligations to the owners, etc.
- Business tasks. Deal with clients, promotion and marketing through online platforms and real estate portals, preparation of market studies, valuation and appraisal of homes, database management, search for buyers, etc.
- Negotiation tasks between client and owner/promoter.
Hiring real estate, both to sell and to buy a house, has many advantages.
For starters, the sale will take place more quickly, since buyers looking for flats or houses often turn to these types of companies.
On the other hand, real estate companies have a wide range of real estate (houses, flats, apartments, chalets, single-family homes, etc.), so they can offer you the options that best suit your needs.
In both cases, hiring the services of a real estate agency is synonymous with centralizing the sale through a single interlocutor who performs the entire process and all the bureaucratic procedures, usually the most tedious and technical.
The immediate result is time and money savings, as well as the security of avoiding setbacks.
In this case, we offer you some more advantages: we are the number one online real estate agency in sales and you will not have to pay us commissions (you will only pay a fixed amount when your apartment is sold). And if you are a buyer, we help you get the best financing.
With all this information, we can already establish five differences between promoters and real estate:
- Promoters are present throughout the construction process, while real estate agencies only intervene in marketing.
- The promoters own the land and the houses built, while the real estate agents act as intermediaries.
- The objective of the promoters is to recover their investment, while the real estate companies charge a commission (variable or fixed, as in this case) per sale.
- The promoters have civil liability, as established by law.
- The real estate companies carry out cross-cutting work among whose functions the management of the procedures related to the sale of the property stands out.
Do you have any more questions? Contact us!