What does privatization of an apartment provide - the pros and cons of real estate ownership

What is privatization?

Privatization is the transfer of municipal (state) property into private hands .
Tenants of residential premises and members of their families who live in apartments under a social tenancy agreement have the right to privatization. If this is a land plot - a lease agreement or an act of transfer of land for indefinite use. Based on these documents, a person has the right to become the owner of real estate.

Privatization concept

Privatization means the registration of a piece of real estate owned by the municipality.

The legislation very precisely defines the procedure and the list of necessary documents to carry out the procedure.

There are also a number of restrictions that completely limit the right to accept housing free of charge. For example, this procedure is possible only for those persons who permanently reside in the premises under a social tenancy agreement.

Housing that belongs to the non-privatized category is real estate leased, the rights to which are limited. To the point that state permission is a prerequisite for registering a new family member.

Privatization and property: what is the difference, what is the difference?

Privatization began in 1991, when state/municipal property began to be actively transferred into private hands. This also affected ordinary people who had the opportunity to receive free housing from the state. In particular - apartments, land and private houses. However, to this day, despite all the years that have passed, this procedure remains something incomprehensible and strange. Let us take a closer look at how privatization differs from the transfer of rights to real estate and what their features are.

What does a privatized apartment mean?

The privatization of municipal real estate began in Russia more than 25 years ago and continues successfully to this day. Throughout the entire time, people argue about what is more profitable: living in your own housing or in public housing? It is impossible to answer this question unambiguously. It all depends on the specific life situation.

What is a “Privatized apartment”?

Privatization is the procedure for transferring objects from the state or municipal housing stock into private ownership. Re-registration is available to everyone who has a title document for housing. That is, a social tenancy agreement or a move-in order.

The procedure is always carried out on a voluntary basis. It is impossible to force someone to become the owner of municipal property. Transactions made under duress can be easily challenged in court. After the re-registration is completed, the persons registered in the apartment become full owners of the property on the basis of shared ownership. Each of the privatization participants receives a certain share in the apartment, which they can dispose of at their own discretion.

The procedure is regulated by Federal Law No. 1541-1 “On Privatization...”, as well as the Housing and Civil Codes.

What is a “Non-privatized apartment”?

Non-privatized housing is part of the state or municipal fund. Employers and their families have the right only to reside in the territory allocated to them by the state. One of two documents serves as the basis for moving into housing owned by a municipal entity:

• warrant (issued until 2005);
• social tenancy agreement (issued starting from 2006).

After re-registration of housing from municipal property to private property, it loses its “non-privatized” status.

Non-privatized housing includes:

• municipal apartments;
• service apartments;
• dormitories;
• residential property located in one of the closed military camps.

From this list, the law allows the privatization of only real estate owned by the municipality. Provided that they are not withdrawn from circulation and are not in disrepair.

If you want to register ownership of a service apartment, you must first transfer the property from service to municipal. This can only be done with the consent of the owner, that is, a department or organization. As soon as the housing is transferred to the balance of the city and a social rental agreement is concluded with you, you can begin privatization.

To find out the status of housing, just look at the receipt for housing and communal services. There, in the “owner” column, there is detailed information about the owner of the property. Also, information about the owner of square meters can be obtained from an extract from the Unified State Register or on the official website of Rosreestr.

The main differences between a privatized apartment and a non-privatized one

Now let's look at this issue in the same way if your apartment or dacha is not privatized. Living in a municipal apartment under a social tenancy agreement, you will not be the owner, but the tenant, and the right to dispose of the apartment will be quite limited.

In this case, I would like to explain everything in detail using an example. So, if the apartment is privatized, then if the grandmother wants to give her only granddaughter an apartment, it will be enough to write a will. If she does not write it, then by law it will still go to her as the only heir, for example, or to another relative who, by law, will be first in line.

Pros and cons of privatization

Depending on the legal status of housing, the property and non-property rights of residents will vary significantly. Therefore, before you start re-registration, carefully study the consequences of privatization and analyze whether there is any benefit to it or whether it is better to leave everything as it is. To make it easier for you to make a decision, read the advantages and disadvantages of privatization.

1. Tenants of an apartment become its owners and receive the right to dispose of square meters at their own discretion. The new owner of the property can sell it, rent it out, mortgage it to the bank, exchange it, or indicate it in the will.
2. Real estate is given free of charge. Applicants will only need to pay for the services of the registrar and some other government services.
3. Redevelopment no longer requires approval from the local administration. It is enough to obtain permission from the BTI.
4. The risk that the owner will be evicted from the apartment for debts to utility services is minimal.

1. There is an obligation to pay monthly fees for major repairs. Maintenance of the house and surrounding area.
2. It is impossible to select a privatization object. The tenant has the right to re-register ownership only of the apartment in which he currently lives and in respect of which he has entered into a social rental agreement with the administration.
3. There is an obligation to pay annual property tax. The amount of which is 0.3% of the cadastral value of the property.

As you can see, after purchasing their own home, citizens are assigned a number of financial responsibilities that can be avoided by remaining in a municipal apartment. It’s up to you to decide whether to privatize your home or not, but just in case, we advise you to read the expert recommendations below.

Deprivatization

Let's find out what deprivatization of an apartment is? Surprisingly, this is the reverse process of privatization .

If the housing was not sold, gifted or inherited, then you can submit an application to the municipal housing management authority. In Moscow, for example, this is the Directorate of the Housing Fund Department.

The application must be accompanied by technical documentation for the property, an extract from the house register (see how to obtain an extract from the house register) and a document confirming that there are no arrears in payment for utilities.

As a result, the apartment will become municipal , and residents will use it under a social tenancy agreement.

In this case, residents will lose the right to free privatization in the future. It is advisable to carry out such manipulations only in one case - if your privatized apartment is located in a building for demolition.

However, every year the terms of free privatization are extended, and tenants of state apartments get another chance to re-register them in their name. You can decide whether you personally should privatize the apartment or not until March 2020.

Next, we suggest watching a video that explains what deprivatization of residential premises is, and also when it is possible.

We hope you now know what it means to privatize an apartment and for whom this process is beneficial.

What is property?

Property concept

Ownership of real estate is the ownership of an object by a legal or natural person. It is impossible to privatize such housing.

The procedure for transferring ownership is also different. This could be a regular purchase and sale transaction or a gift or inheritance agreement.

How to privatize several land plots?

What you need to look at is the title and title documents of the owner in order to understand who exactly is the owner and on what basis. You can also see the extract from the Unified State Register of Registered Rights to the property.

The economic essence of state privatization. Transformation of a state unitary enterprise as a way to privatize state property.

Only after this the owner will have the right to own and dispose of the apartment. An apartment can be privatized either for one person or for several persons, provided that they do not already have another privatized apartment.

Privatization, in contrast to denationalization, involves not only a change in the subject of ownership, but also the form through the acquisition by citizens or their associations from the state of local enterprise councils into private (collectively shared or joint) ownership.

But a vehicle should be towed only when it interferes with the full movement of other vehicles.

Until this moment, children may not have been included in the homeownership, and many unscrupulous parents took advantage of this situation, sold their homes and left their children practically on the street.

The essence and mechanism of privatization

Privatization of property is the process of transferring real estate from the original owner, represented by the state, to an individual - a citizen and members of his family.

Legal document for the procedure:

• social tenancy agreement for obtaining ownership of housing;
• a long-term lease agreement or an act of transferring land for indefinite use for the privatization of land plots.

The process of transferring real estate is carried out on a voluntary basis, the initiator is a resident citizen who has expressed a desire to register municipal real estate in his name. When privatizing an apartment, who is the owner depends on the number of persons involved in registering the transaction. If the transfer from the authorities passes to one individual, then the property after completion of the process will become his individual property, if to several participants, then each will own a certain share, and the real estate will become the object of shared ownership.

The right to privatization can only be exercised by citizens of Russia once in their lifetime with the consent of all registered residents, including minors who have reached the age of 14 years. After privatization, ownership rights are transferred in shares to all participants, with the exception of citizens who voluntarily renounce their due portion.

The implementation mechanism includes obtaining the consent of residents and submitting the following documents to the MFC:

• applications for the process;
• passports of residents and birth certificates of minor children;
• extracts from the Housing Office about the registered residents;
• certificates confirming early non-participation in the privatization of real estate;
• technical passport indicating the total area and cadastral value;
• agreement giving the right of residence or orders;
• consent of guardianship and trusteeship authorities with the participation of minors;
• notarized refusal of persons entitled to receive a share.

Thanks to the participation of the MFC in 2020, the process is extremely simplified, registration is carried out remotely to avoid queues, and photocopies of documents are made by specialists during a visit with simultaneous submission of documentation.

Assessing the need for privatization

• What is the right to use residential premises?

To make a decision in favor of privatization or against it is necessary to highlight the differences between a privatized apartment and a non-privatized one and determine how significant they are in each specific case. Non-privatized housing is objects owned by state or municipal authorities, which transfer to residents, on the basis of a social tenancy agreement, the right to live without the possibility of performing legally significant actions.

The difference between a privatized and non-privatized apartment according to a number of significant parameters is presented in the table:

The undeniable advantages of privatization lie in obtaining absolute ownership of a property practically free of charge, including only payment for government services. Among the disadvantages, one should highlight the increase in maintenance costs, including liability in the event of force majeure situations.

When weighing the pros and cons when making a decision, you should pay attention to the following factors:

1. Person status. For example, it is not advisable for a single pensioner with no relatives to take on additional financial expenses and service risks.
2. Condition of the property. The privatized property of a “dilapidated” object requires major repairs at the expense of its own sources, and an illiquid plot of land will cause difficulties in the sale, while the right to further participation in the privatization process will be lost due to use.

Privatization and property: what is the difference, what is the difference?

Is privatization different from registration of ownership? This question worries people who are just planning to transfer ownership of an apartment or already have separate housing. Despite the similarity of concepts, privatization has fundamental differences from property.

Let us try to explain what is the difference between these concepts and what should we pay special attention to? For better clarity, let’s also consider a real-life example.

What is the difference between privatization and property rights?

Based on the identified main characteristics of the concepts under consideration, let's compare them.

So, privatization differs from property rights:

1. The cost of re-registration. If privatization is a free procedure, then receiving property under a sales contract implies the purchase of a movable or immovable object at a market price. Heirs and donees who are close relatives of the donors receive property free of charge.
2. Subject composition. When privatization, one party to the transaction is necessarily an agency, municipal association or state, the second is an individual or legal entity. When registering property rights, the participation of the state and the municipality is not a mandatory condition; most often, agreements are concluded between individuals or legal entities.
3. The basis for obtaining property. Only tenants and members of their families can privatize a real estate property and only on the basis of a social tenancy agreement for an apartment or a long-term lease of land. When purchasing or receiving property as a gift, such requirements are not imposed.
4. Method of obtaining property. Privatization is implemented in a single form, while the acquisition of property rights can occur in various ways: as a result of inheritance, the conclusion of a purchase and sale agreement, after registration of a deed of gift, etc.

Let's look at an example from life when, by wisely combining methods of obtaining property, you can significantly improve your living conditions:

Grachev Ivan Borisovich was engaged in selecting the best way to purchase living space on the most favorable terms. At the time of the search for housing, the man lived in a municipal apartment and had a social tenancy agreement in hand, which made it possible to privatize the property at any convenient time. Grachev had no relatives, which means it was useless to hope for an inheritance. Over the course of several years, Ivan Borisovich managed to save a small amount of money, which would be enough for a one-room apartment in a residential area. Having soberly assessed the situation, Grachev decided to take advantage of the right to free privatization; after re-registering the apartment, the man sold it at the market price, added the funds he previously had to the proceeds and bought more comfortable housing in one of the prestigious areas of the city.

Property and privatization

The difference between property and privatization is that privatization is a special case of ownership, valid only for real estate when transferred directly from municipal authorities on the basis of regulatory law No. 1541-1 of 07/04/1991. For example, a privatized apartment is private property, the rights to perform legal actions are no different from taking possession in any other way: as a result of donation, purchase, inheritance, etc. What is the difference between a privatized apartment and a purchased one? There are no differences in the legal field. The difference is:

• in title documents (sale and purchase agreement instead of privatization certificate);
• in the costs incurred during the purchase in the form of a negotiated price, based on the market value, in contrast to the interpretation of Article 1 of Law No. 1541-1 on free transfer;
• having the right to choose (purchase is carried out at the request of the citizen, privatization only on the basis of a social rental agreement or perpetual lease of a plot).

The table shows in detail how privatization differs from property ownership according to a number of criteria:

When choosing between privatization and property acquired on the basis of other transactions, one should be guided by the undeniable advantages of the one-time right to transfer property values ​​from the state to an ordinary citizen without involving funds. However, it is necessary to assess the degree of importance of an object in undivided ownership from the point of view of alienation, comparing maintenance costs with the risks in the event of unforeseen situations, shifted to municipal authorities when limiting ownership exclusively to the right of residence.

The difference between privatization and registration of ownership

The exact definition of privatization objects can be gleaned from the Housing Code of the Russian Federation, which duplicates the provisions of the Civil Legislation regarding such objects.

But the Law on Privatization introduces restrictions on certain residential properties that are not subject to general provisions.

Articles on the topic (click to view)

• Federal Law 178 on the privatization of state and municipal property 2020
• Legalize an extension to a private house in 2020
• Requirements for residential premises according to the Housing Code of the Russian Federation
• Acquisition limitation periods for land, movable and immovable property: judicial practice in 2020
• Consent to move into residential premises: sample
• Dividing a personal account in a privatized apartment
• Acquisitive prescription for movable property: period according to law

Super-intensive traffic, panoramic glass windows, rooms with separate entrances on the ground floor.

There are a number of objects that simply cannot be privatized (apartments in dilapidated buildings, housing in closed military camps).

By private we mean an apartment purchased for real money from the owner. Under privatized - the former municipal, when the employer privatized it free of charge.

Privatization and property rights difference

In order to understand whether privatization is needed or not, you need to understand how these concepts are different and what is better. First of all, you can never be evicted from a privatized apartment, even for debts on housing and communal services. You fully have the right to dispose of your property, and after that it will become so.

That is, you can then donate it or bequeath it as an inheritance.

Registration of property rights or privatization

Are we talking about Moscow?

registration lines 12 days. The cost of state duty is 2,000 rubles. Agency services prices vary from 7,000 rubles. About registration and state registration of citizens' ownership of residential premises - an apartment or a residential building - is carried out.

The right to privatize residential premises is an unconditional right granted to a citizen of the Russian Federation by Law. To do this, you need certificates of the place of residence of all residents registered in the apartment before 1991, an extract from the “house register” about the composition of the family, or she herself.

The main differences between a privatized apartment and a non-privatized one

In order to understand whether privatization is needed or not, you need to understand how these concepts are different and what is better.

First of all, you can never be evicted from a privatized apartment, even for debts on housing and communal services. You fully have the right to dispose of your property, and after privatization it will become so.

Now let's look at this issue in the same way if your apartment or dacha is not privatized.

What is the difference between apartment registration and privatization?

The difference between these concepts lies in the fact that only municipal and state-owned residential premises are subject to privatization. After privatization, property rights are registered in the register.

In other words, as a result of privatization of property, ownership rights are acquired. In fact, privatization is one of the grounds for acquiring ownership of real estate.

But ownership of an apartment can be obtained through other transactions - donation, purchase and sale, exchange, and so on. Although it all depends on the specific context.

If we judge formally, then privatization is a way of acquiring property rights, and registration of ownership of an apartment means entering information into the Unified State Register and receiving the corresponding paper from there. In other words, it is possible to register property both after privatization and after a regular purchase, inheritance, exchange, and the like.

The difference between privatization and registration of ownership

Denationalization can be carried out on the basis of legal acts and is regulated by government institutions.

Privatization of apartment and registration

In general, registration requires permission in writing from all registered residents and permission from the authority with which the social tenancy agreement (landlord) was concluded. The latter can allow occupancy if, in the end, the living space for each tenant is no less than the “accounting norm.”

To make a positive decision on discharge, the court must have compelling reasons. The most common of them: • the tenant does not comply with the rules of the hostel established by law (causes inconvenience to neighbors, breaks property, etc.); • the citizen does not pay rent.