How to privatize a garage in a garage cooperative correctly?

A large number of garages in Russia were built back in Soviet times, when citizens created cooperatives for this purpose.
And at the moment there are people who believe that the paid share for a garage space is confirmation of ownership rights to it. In reality, the paid share serves as the basis for the emergence of ownership rights to the property, and in order to obtain ownership rights it is still necessary to go through the registration procedure with government bodies and assign the property a cadastral number.

Property that does not have a cadastral number and is not included in the Unified State Register cannot be anyone’s property, and, therefore, it cannot be sold, bequeathed, or leased. Any transactions with property are possible only if there are ownership rights to it.

In addition, if the city administration decides to seize this plot of land and build other facilities on it, then, if there is a privatized garage, the owners will receive compensation in the amount of the cost of the garage and the land plot under it.

• 1 Privatization of a garage in a garage cooperative 1.1 Grounds
• 1.2 What documents are needed to privatize garages? 1.2.1 The procedure for collecting documents for garage privatization
• 1.2.2 Sample

Privatization of a garage in a garage cooperative

Reasons

Participants in a garage-building cooperative (GSK) have preferential rights to privatize land plots located under garages. If the shareholder has paid the share in full, then he is considered the full owner of the garage; in order to transfer it into ownership, it is necessary to go through privatization procedures.

The privatization procedure itself consists of two main stages: registration of ownership of the garage and registration of ownership of the land plot underneath it.

IMPORTANT When carrying out the garage privatization procedure, it is important to consider its type. If the garage is a separate building, then it is possible to privatize it yourself. If the garages are combined into one large building and have common walls, then to privatize one of them you will need to obtain the permission of all other owners. If one or more owners are against it, it will be necessary to obtain a notarized refusal from them.

The easiest way to formalize the privatization of garages is not for each owner individually, but by uniting and entrusting the registration of ownership to the chairman of the GSK. You can obtain the consent of all owners for privatization at a meeting of GSK participants. At the meeting, it is worth discussing in detail the need for privatization, the list of documents that need to be collected, and choosing a proxy to draw up a power of attorney to act on behalf of the entire cooperative.

What documents are required to privatize garages?

The list of documents for registration of ownership of garages from GSK is quite large and its collection requires painstaking work. This is often entrusted to professional lawyers, with whom a corresponding agreement is concluded. If you have the time and desire to understand the documents, you can do it yourself.

The procedure for collecting documents for garage privatization

1. Obtain from the chairman of the garage cooperative a certificate with information about the state registration of the GSK.
2. Submit a certificate to the BTI department, on the basis of which they will issue an extract with the legal address of the garage location. In addition, you will need to order a technical plan there.
3. Order a cadastral passport from the Rosreest office.
4. Submit an application for privatization to the Rosreest branch. The application can be submitted in person by contacting Rosreestr, through State Services or through the MFC. To do this, you will need to provide the following package of documents:
   Cadastral passport,
5. Technical plan,
6. A copy of the applicant’s identity documents,
7. A document from the chairman of the GSK stating that the share for the garage has been fully paid,
8. Memorandum of association and charter of the garage cooperative,
9. Extract from the tax service on tax registration of the garage cooperative,
10. Certificate of state registration of the cooperative,
11. Minutes of the general meeting of the GSK, based on the results of which the chairman was elected, as well as the document on his appointment,
12. Land lease agreement for a cooperative with the city administration,
13. Permission to operate a garage cooperative,
14. List of cooperative members,
15. Extract from the Unified State Register of Legal Entities indicating the number of the garage cooperative,
16. A document confirming payment of the state duty.

Sample

A sample application for privatization is available.

Deadlines

If the correct package of documents is provided, an extract of ownership from the Unified State Register will be ready within one month.

The general scheme for registering the privatization of a garage in a cooperative looks similar; in practice, various nuances and features may appear at each stage, which can ultimately affect the complexity, cost and speed of the privatization process.

Nuances

It is important to consider points such as:

• When was the cooperative created?
• What were the grounds for obtaining a land plot,
• Did you have a building permit?
• Was the plot of land purchased by a legal entity,
• Other important aspects.

IMPORTANT it was possible to privatize a garage for free until March 2020. Now this procedure is paid, that is, in order to transfer the property into ownership, it will be necessary to buy it from the administration. In the case of GSK, it will be possible to register only the building itself free of charge, since it was built with funds from the members of the cooperative.

Privatization of a land plot under a garage

The second stage of privatization - privatization of a land plot under a garage - for citizens who independently complete privatization includes receiving documents from the administration on the allocation of a plot of land and registering ownership of the land. To do this, you must provide documents to the Rosreestr office.

Documentation:

• Land transfer deed
• Identity documents
• A document confirming payment of the state fee.

In case of registration of privatization collectively, the following package of documents is submitted to the Rosreestr branch of the legal representatives:

• Collective statement from all members of the cooperative,
• An act confirming the transfer or permission to provide a site for construction,
• Document confirming payment of state duty,
• Power of attorney for the representative and a document proving his identity.

Chances of being left with nothing

If you keep postponing the privatization process, you may end up with nothing at all.
The state may need exactly that piece of land on which the garage is located. Then, at the end of the lease period, you will have to leave this plot, losing your property. Such situations are not uncommon nowadays; they arise as a result of the construction of new roads or railway lines, or the expansion of housing construction. The possibility of confiscation of a plot of land also exists for those who have privatized a garage, but such citizens will certainly receive full monetary compensation for the lost property. Having in hand documents confirming ownership of the garage, you can sell it. A non-privatized garage cannot be sold, bought, donated, exchanged, or bequeathed. Therefore, in order to avoid getting into any unpleasant situation, you should not think about the need for privatization and put it off; it is better to start acting and bring the privatization process to the end. This is interesting: What to do if you refuse privatization

How to legalize a garage without documents?

It is also possible to privatize property if the garage was erected without documents, as an unauthorized construction. If the garage was erected on a personal plot intended for the construction of a private house or cottage, then a building permit is not required at all.

Such buildings can be legalized in two ways:

1. Legalize self-construction through the appropriate commission in the city or district administration.
2. Legalize through going to court with recognition of property rights.

In both cases, a desire and a statement alone will not be enough; you will also have to take care of proving that the building does not pose a danger to people and the environment and complies with accepted construction standards, as well as confirming your rights to own this property.

We pay garage tax

As soon as the garage is registered with Rosreestr as a real estate property, the privatized garage tax will begin to be charged on it, the rate of which depends on the cadastral value. Its calculation is carried out using a special method, taking into account purely market factors - the type of building, its location (whether it is prestigious or not), etc. If calculated correctly, the cadastral value should be close to the market value. These will be the tax rates. Regions of the Russian Federation are given the right to set their own rates for real estate in the range of 0-0.3% of their cadastral value.

Refusal to privatize

In the case of privatization according to a simplified scheme, the consent of the municipality is not required. In other cases, it is necessary to obtain permission from the city authorities.

The likelihood of refusal is possible based on Article 28 of the Privatization Law in the following situations:

• If a plot of land is part of a protected area, belongs to the lands of forest or water funds,
• If the plot of land belongs to public lands,
• If a plot of land is in reserve for state needs,
• If the site has another owner (not municipal authorities).

If there are other justifications for the refusal to privatize, it can be challenged in court. A positive court decision is possible if there is a good evidence base.

Privatization of a garage through court

Obtaining a court decision on privatization is necessary in the following cases:

• If the garage was built unauthorized, without permits,
• If a previous decision of the administration denied privatization.

To go to court in both cases, in addition to the claim, you must provide documents that will confirm the existence of legal grounds for transferring the plot and garage into private ownership.

The statement of claim must include the following information:

• Name of the court,
• Personal data of the plaintiff and defendant,
• Information about the garage: date of acquisition, legal address, grounds of ownership, who owns it and on what basis,
• List the reasons why it is not possible to carry out privatization according to the standard scheme,
• Note the purchase of the garage legally and the timely payment of shares,
• Outline your requirements for recognition of ownership rights to the garage,
• List all documents attached to the claim,
• Indicate the date of compilation, the applicant’s signature and its transcript.

The claim is sent to the court office with copies and originals of the attached documents.

A sample statement of claim is available.

Costs of privatization:

• Preparation of a technical passport at the Technical Inventory Bureau - 10,000 rubles,
• Preparation of a cadastral passport - the amount varies depending on the region,
• State duty for registration of property rights – 1000 rubles,
• The state fee for filing a claim is 300 rubles,
• Professional assistance from lawyers – from 20,000 rubles,
• Notary services – 200 – 3000 rubles, depending on the established prices for services and the range of necessary services.

Is it possible to privatize a garage like an apartment?

Privatization refers to the transfer of state property into private ownership through the appropriate legal procedure. Remember the “voucher privatization” of state property in the Russian Federation or the free privatization of housing from the State Housing Fund, the completion date of which was once again extended this year. Is it possible to put the so-called privatization of cooperative garages on a par with these procedures?

The property of members of the State Joint Stock Company is neither state nor municipal; rather, it belongs to the type of common ownership. And it cannot be transferred into private ownership through privatization. The condition for joining the GSK is that members of the cooperative make property contributions and shares. Part 4 art. 218 of the Civil Code of the Russian Federation explains that a member of the GSK who has fully contributed his share is the owner of his garage.

Therefore, legally, the garage in the GSK is not subject to privatization - it is already the property of the owner.

Deadlines for garage privatization

The timing of the privatization procedure is specified in Federal Law-122:

• Review of documents by the city administration takes up to two weeks,
• Receipt of a certificate of ownership within 10 days from the date of application,
• The time required to collect a complete package of documents is individual in each case.

In practice, the privatization process from the moment of collecting documents to receiving a certificate of ownership takes about one month.

As you can see, privatizing a garage in a garage cooperative is not so easy and quick; this process has many hidden pitfalls for the unprofessional eye. Therefore, this issue should be entrusted to professional lawyers who will protect you from errors in the preparation and submission of documents and speed up the procedure for obtaining a certificate of ownership of property.