The question of whether a purchased apartment should be privatized is asked by people who bought real estate on the primary or secondary market. What will happen if we do not engage in privatization? Is it dangerous to refuse the procedure or is it better to protect yourself and your property? Read on to learn more about the necessity and feasibility of the procedure.
The essence of privatization is the transformation of municipal housing into private ownership. As a result of the procedure, the citizen becomes the owner of an object that he previously could only use (for example, on the basis of a social tenancy agreement). The concept of privatization first began to be used starting in 1991 - it was then that people began to engage in privatization en masse. According to statistics, today at least a third of housing still belongs to the state.
- Is it mandatory to engage in privatization or is it voluntary?
- Positive aspects of privatization
- Privatization of a purchased apartment: possible problems and risks
- Who needs privatization
- Conclusion
Is it mandatory to engage in privatization or is it voluntary?
The law states that registration of privatization is not the responsibility of citizens, but their right. Consequently, the answer to the question of whether the apartment should be privatized is negative. Each family is free to make this decision, having assessed all the pros and cons of registering real estate as their own. As already noted, today more than a third of housing belongs to the municipal fund.
Most often, people decide not to privatize for a number of reasons:
- It's easier. Families in non-privatized apartments live in them on the basis of a social rental agreement. It gives the right to register your children here, as well as close relatives or just acquaintances;
- According to the law, it is impossible to evict such a family “to nowhere”. After the death of citizens registered in a municipal apartment, their heirs acquire the right of lifelong residence;
- It's cheaper. There is no need to carry out major repairs on your own - all work is carried out by the Housing Office. In addition, the family does not have to pay property taxes.
Citizens living in a non-privatized apartment are only required to pay on time for used utilities and maintenance of the property.
As for the privatization of a purchased apartment (for example, with a mortgage), the feasibility of privatization is in question here - the buyer already becomes the full owner of the property. Therefore, there is no need to re-register ownership.
New law: how to calculate tax on the sale of an apartment for individuals
Before selling an apartment, the owner needs to find out whether, as a result of the transaction, he will have an obligation to pay income tax, how the tax base for calculating personal income tax will be calculated, and which deduction is more profitable to apply. Despite the fact that income tax in Russia is paid taking into account many rules, exceptions and clarifications, it is not difficult to calculate the amount of personal income tax yourself.
We recommend reading: Maternal 2020
Let us tell you in more detail how the tax on the sale of an apartment is calculated in 2020-2020. The new law does not provide special conditions for pensioners and other benefit categories. As a general rule, the obligation to pay personal income tax on the sale of an apartment, house and other real estate applies to all citizens of the Russian Federation, but there are exceptions when it is possible to avoid paying tax or reduce its amount. More on this later in the article.
Positive aspects of privatization
Here are the main arguments for why to privatize an apartment:
- A citizen cannot be evicted for utility debts. You can try to collect the debt in court, but even so the person will not be deprived of his property;
- An apartment is a guarantee of a calm and comfortable existence in the future. The cost of real estate is growing exponentially, so if you have the opportunity to privatize a property for free, you should not miss the chance;
- The ability to make decisions about the registration and discharge of other citizens. It is much easier to evict a former spouse who refuses to privatize;
- The object can be inherited, and in general the owner’s rights are not limited. If he wants, he exchanges the apartment for a larger one with an additional payment; if he wants, he uses it to generate passive income by renting it out.
If you do not privatize the apartment, you can only count on living in it on the basis of a social tenancy agreement. With purchased real estate, everything is different - the purchase and sale agreement already serves as a sufficient basis for registering property rights in Rosreestr. Therefore, the privatization of the purchased apartment is not important - in fact, it already completely belongs to the buyer.
Is it necessary to privatize an apartment purchased with a mortgage | Adviсe
Citizens often contact the Chistye Prudy Academy of Sciences with questions about privatization and mortgage lending. How to privatize an apartment with a mortgage and is it necessary to do it at all? If an apartment purchased with a mortgage in a new building, does it need to be privatized? We will answer these and other equally pressing questions:
Who owns a non-privatized apartment?
The owner of non-privatized housing is the state. Citizens living in an apartment under a social tenancy agreement have the right to contact the municipality and privatize their housing. But if an apartment is purchased with a mortgage, then nothing needs to be privatized.
In the early 90s, the process of privatization of state property, including real estate, began in Russia. Then, the apartments in which they lived became the private property of citizens.
But in 2020, changes occurred in the legislation of the Russian Federation, which recognized privatization as unlimited. Therefore, some people privatize housing, while others prefer to live in municipal housing. But this applies to those who already live in their own housing.
What should those people who bought an apartment with a mortgage do?
If you bought an apartment with a mortgage on the secondary market, and it is already registered with Rosreestr, you have in your hands a stamped extract from the Unified State Register of Real Estate. It clearly states that you are the owner of a particular property. This means that your apartment does not need any privatization.
In the Russian Federation, according to the law, it is impossible to buy a municipal non-privatized apartment. If a citizen has entered into a purchase and sale agreement for housing, then it is automatically considered privatized. There is no need to do anything with the apartment anymore. You can privatize apartments that are only owned by the state, and citizens live in them on the basis of a social tenancy agreement.
Why is privatization needed?
Privatization is the transfer of municipal housing into the ownership of citizens free of charge. Such transfer belongs only to the real estate in which citizens live on the basis of a social tenancy agreement.
The privatization process is carried out to obtain the opportunity to carry out all possible transactions with real estate - donate, sell, bequeath, mortgage. Article 2 of the Federal Legislation of Russia on privatization states: social tenants receive occupied residential premises free of charge.
This right applies only to Russian citizens who have the right to use municipal premises.
Apartment mortgage
In Russia, since the beginning of 2020, banks and other financial institutions began to reduce mortgage rates. This facilitates faster loan repayment. Among the population, the topic of purchasing apartments and houses with mortgage lending is still relevant. Let's look at some reasons for mortgages from citizens:
- The population does not have all or part of the amount to purchase housing
- Possibility of renting out an apartment
- Excellent opportunity to expand or improve living conditions
- Buying an apartment with a mortgage is a great way to invest in your own rather than rented housing.
- Possibility of early repayment of mortgage (maternity capital, etc.)
- Possibility of choosing mortgage programs for state support for different segments of the population
Whether the apartment was purchased with a mortgage or with cash from citizens does not matter. Until the final repayment of the loan, the housing is pledged to the bank. Immediately after the apartment is re-registered to the buyer, the housing becomes his property. Mortgage lending is not a reason for privatization.
When the buyer repays the loan, the deposit is canceled and any transactions can be made with the apartment without the participation of the bank. Until the loan is repaid, the consent of the bank or other institution is required for sale, donation, exchange, redevelopment, rental, etc.
Any real estate purchased with a mortgage immediately becomes the property of the buyer, but with the encumbrance of the bank.
Military apartment mortgage
Military mortgages provide an opportunity for citizens involved in military service to receive a loan on preferential and favorable terms. They can especially count on larger loans. Let's consider the issue of military mortgages. Based on the Federal Law of the Russian Federation No. 117 “On the mortgage savings system of military citizens,” the latter have the right to preferential mortgage lending.
Service living quarters provided to citizens of the Russian Federation liable for military service are related to the nature of their service. According to the Federal Law, such housing is provided for the duration of military service. Upon dismissal or change of place of service, citizens liable for military service have the right to privatization and ownership of the apartment.
Law No. 117 Federal Law specifies a savings mortgage system for military personnel. That is, regardless of the presence or absence of housing for a military man or his family members, he can purchase this property using mortgage lending. After full payment of the preferential loan, the person liable for military service becomes the full owner of the apartment.
Such housing also does not need privatization.
Privatize an apartment purchased with a mortgage in a new building
The citizen who has privatized his home becomes the full owner. He can carry out any operations with it in the real estate market. An apartment in a new building, and even purchased with a mortgage, does not need privatization.
If an apartment in a new building was purchased under an equity participation agreement, under mortgage lending, then privatization of such housing is not necessary. The exception is new housing allocated by the state as a waiting list or a preferential contingent. In this case, the property is subject to privatization.
The Chistye Prudy company is ready to provide all possible support in providing mortgages to our clients. We have many years of experience in finding exactly your apartment available for mortgage lending. We work closely with banks and can easily select a profitable loan scheme for you.
Our specialists and lawyers will take care of the problems of collecting the necessary documentation and mortgage paperwork. AN will do everything possible to ensure that the bank's decision on your mortgage is quick, profitable and positive. We will advise you on all issues related to privatization and mortgages. The Miel company guarantees the legal purity of the transaction.
Buying or selling an apartment in Moscow and the Moscow region in a new building or secondary housing is simple and safe with us!
Call +7, leave a request or come to the office Chistoprudny Boulevard, 5. Metro Chistye Prudy, Moscow
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Source: https://prodam-kuplyu-kvartiru.ru/articles/nuzhno-li-privatizirovat-kvartiru-kuplennuyu-v-ipoteku/
Privatization of a purchased apartment: possible problems and risks
Privatization can begin in relation to municipal or state housing. With purchased residential buildings and apartments, everything is simpler - privatization is not needed here. During the process of concluding a purchase and sale agreement, the property will be transferred from one owner to another. Based on this document, the fact of transfer of ownership will be officially registered. Thus, the new owner does not need to prove his right to the property - it is already legally his. Proof of this fact is the certificate of ownership, which must be obtained at the end.
Similar rules apply to cooperative housing, the privatization of which is not a prerequisite. To get a cooperative apartment, a person is required to pay all share contributions in full and obtain a certificate of absence of debt. The document must bear the signature of the chairman and accountant - only in this form does it serve as the basis for registering the right of ownership.
However, when buying an already privatized apartment, you need to carefully study the seller’s documents. Otherwise, the following problems may occur:
- Persons will be registered in the privatized apartment, who after some time can declare their rights to the object. For example, a person will return from prison;
- Other persons who are not among the owners may be registered in the apartment, but they retain the right to reside in this living space;
- During the privatization process, the previous owners excluded children from the transaction, who, after reaching adulthood, can seek protection of their rights in court, up to the termination of the contract and declaring it invalid.
Therefore, even at the stage of checking documents before concluding a purchase and sale transaction, it is important to once again clarify the data on registered and resident persons and whether there are any minors among them. Otherwise, privatization carried out by the previous owner may play a cruel joke on the new owner.
Owned apartment for less than 3 years - is it worth buying, risks
The period of possession is not calculated in calendar years, but in months, so the period of ownership of an apartment for sale must be at least 36 consecutive calendar months. The calculation can be carried out before the certificate of title to the house is issued - when opening an inheritance and accepting it, it is recommended to calculate the time from the moment the certificate is received. Changes affecting tax legislation in the housing market have significantly changed the method of calculating personal income tax. Starting from 2020, it is impossible to sell housing at a greatly reduced price to reduce the taxpayer’s burden.
Privatization is often called denationalization. This means that after privatization the object becomes private property, which is confirmed by a certificate of ownership. In this case, the owners can be one or several people, as with shared ownership.
The apartment is sold in 2020 for 5 million rubles. When calculating taxes, you can use a property deduction.
Privatization of housing is a widespread phenomenon in Russia; most of the housing stock was previously in state or municipal ownership and was privatized by citizens. After privatization, they receive ownership of the apartment, and therefore the opportunity to sell it.
If the apartment is sold at a price higher than the cadastral value, then the price from the contract is used to calculate the tax base.
Already in 2020, it is necessary to take into account the cadastral value of housing. Amount subject to taxation – maximum amount:
- Or negotiable price;
- Or the cadastral value multiplied by a factor of 0.7.
Who needs privatization
It is recommended to pay attention to the possibility of privatization for people who have heirs and who want to leave their property to them on the basis of a will agreement. Also, privatization is “shown” for people with good family relationships and those people who are able to maintain their property themselves. In any case, privatization serves as a kind of additional guarantee of the safety of one’s property. In any case, each person is free to make his own decision; no one is forcing him.
What rights do “refuseniks” have to living space?
The law does not directly regulate relations with those whose rights were not taken into account during the denationalization of property.
The Supreme Court gives the answer. The “refuseniks” retain the right to lifelong ownership of property. After all, their refusal meant that they did not acquire ownership rights, but retained the right to use housing for the rest of their lives.
The ex-husband and wife lose the right to use the property. But there are no “refuseniks”. Therefore, it turns out that the new acquirer will not be able to evict those who refused to participate in privatization.
The problem of eviction of failed owners is very difficult to solve. Therefore, it is better to refuse the deal if “refuseniks” are registered.
The purchase and sale agreement includes a clause regarding citizens retaining the right to use the property. If such a condition is not specified, then it is considered that the contract has not been concluded. Whether or not to agree to sign such an agreement is a personal matter for the buyer.
However, it must be taken into account that by signing, he agrees to allow other citizens to live in the purchased housing.
Therefore, it will not be possible to submit demands to the seller to remove citizens from registration. After all, the contract initially indicated that after the sale, citizens with the right of residence would remain.
To avoid problems, it is better to ask “refuseniks” to leave a written statement that they are leaving and renouncing their rights to the apartment.
Documents for purchasing a privatized apartment
Any housing of this type has not one, but several owners. They can be both adults and children, so this fact must be clarified. If we are talking about the sale of property where one of the co-owners is a child, then the seller must show permission for the sale obtained from the guardianship authorities. It will guarantee the fact that the child will be able to obtain similar housing for use. Information about all registered residents must be in the certificate from the BTI.
It is also worth asking if the seller has a legal spouse . As a result, it may turn out that the apartment was received after marriage, so in a legal sense it will be classified as common property. In such a situation, the spouse does not have the right to sell or rent out the apartment without obtaining the consent of the spouse.
Unfortunately, the sale of such housing can be refuted not only in the absence of permission from the spouse. It can be annulled in court if the real estate seller is declared incompetent. To save yourself from such “surprises”, you can ask for a certificate from a mental or drug dispensary. But you should only ask for such documents if there are clear suspicions of the seller’s insanity.
It is advisable to check the seller's passport for any erasures or blots . It is useful to check the expiration date, as it may be expired. The next step is to check all documents related to the property. Particular attention is paid to the presence of debts on the apartment and possible encumbrances.
