Purchasing an apartment during the construction stage is possible under a share participation agreement in construction or through a housing cooperative. In the latter case, the shareholder actually receives neither guarantees nor rights. Such apartments are cheaper, but in addition to the previously mentioned factors, there is also a high risk of falling for scammers. Therefore, if it is possible to choose between preschool and housing cooperatives, the first should be a priority.
The shared participation agreement is subject to Federal Law No. 214 “On Participation in Shared Construction”, which regulates the rights and obligations of shareholders and the developer, therefore, there are more guarantees that the housing will be received on time and in the way that was originally promised by the insurance company. Otherwise, the developer will be held liable before the law, and the shareholder is guaranteed to receive compensation for damage. But it is important to understand the following - protection at the legislative level will only take place if the agreement is registered with Rosreestr. Since 2014, this procedure has become mandatory.
Entering a DDU into Rosreestr means the following:
- the DDU itself and the developer’s documentation have been verified;
- everything is in order with the design, permitting documentation and declaration;
- the construction company provides services within the framework of Federal Law No. 214, which means the rights of the shareholder are protected by the state.
It is important that when the DDU is entered into Rosreestr, the repeated fraudulent sale of the apartment is excluded, as is the case with housing cooperatives.
How to check the registration of a share participation agreement in construction and what to do if the DDU is not on the lists - we will talk about this in detail below.
Why do you need to register a child-care center and how is it done?
Relatively recently, there were many cases when, according to the DDU, one apartment in a building under construction was sold in parallel to several buyers. Equally common were situations where an unscrupulous developer began selling apartments without having construction permits. There were a lot of defrauded shareholders, so the state introduced compulsory registration of preschool education institutions in Rosreestr.
When carrying out registration, Rosreestr employees are required to check that the developer has permits and the absence of encumbrances (in the form of an already completed sale to another person) on the future apartment of the potential shareholder. Before the DDU is registered in the Unified State Register of Real Estate (USRN), it is impossible to make monetary settlements with the developer, since the agreement is considered invalid.
Usually, the registration of DDU is carried out by developers. To reduce the burden, they submit documents for registration in batches. That is, they wait until they have several shareholders, and only then submit all the papers for registration at once. This process can take quite a long time.
When registering a DDU, you can immediately order an extract from the Unified State Register in your application. This is the only documentary evidence of the fact that registration has been completed and your transaction with the developer has been assigned a number in the relevant state register. After receiving such an extract and the DDU with Rosreestr marks, you can make monetary settlements with the developer under the contract. You can also order an extract from the Unified State Register of Registration separately, for greater confidence.
The shareholder can find out that the DDU is registered from the developer; although, if desired, he can register the agreement himself. In general, checking the DDU helps make sure that everything is really in order with the contract.
What to do if the contract is not registered
- You should find out the reason for the refusal and correct it (provide the entire list of documents, correct errors in the contract).
- If the reason is the developer, then it is better to make sure once again whether he is trustworthy. If everything is in order, you should ask the developer himself what’s going on with the registration.
- After this, you must resubmit the documents to the registration service.
Now you know how to quickly check the registration of a preschool educational institution in Rosreestr without leaving your home. It will take you about 5 minutes. We wish you a pleasant check.
Checking the DDU agreement by its registration number
There are two methods to obtain information about registering documents for the purchase of an apartment in a building under construction.
- Order an extract from the Unified State Register of Real Estate. This method is considered the most reliable and fastest. Firstly, you receive a document confirming that the childcare center is registered in the prescribed manner. Secondly, receiving such an extract takes no more than 10 working days.
- Request for registration of preschool education on the Rosreestr website. In this case, you will not receive supporting documents. But you can get information almost instantly. However, the site works intermittently and may distort information, and the data is not immediately entered into the database. The document may already be registered, but information about this may not yet be available on the website.
In short, checking the equity participation agreement on the Rosreestr website is not the best way to ensure the authenticity of the DDU. But if it is most convenient for you, then you need to do the following:
- Go to the Rosreestr website. At the bottom of the page, in the “Electronic services” section, select the “Reference information on real estate online” section and click on it.
- A large table will open in front of you, in which you can use various information to check the DDU. In this table, the registration record is designated as “Restriction Number” in the lowest block of the “Rights/Restrictions” table. Paste your registration number into the appropriate cell.
- Fill in the property details in one of the blocks above.
- Enter the captcha and click the “Generate request” button.
One DDU should appear in front of you. But the system sometimes works inaccurately, and there may be several of them. Find the combination of numbers that matches your DDU number.
If it is there, then everything is in order. But if it is not there, this may mean that the child care center is not registered. However, it may also be that the information has simply not been entered into the system yet. Therefore, you can check the DDU again after some time.
Sources:
Federal law on participation in shared construction.
Rosreestr website.
What is registration of preschool educational institution in Rosreestr
DDU is an agreement on shared participation in the construction of an apartment building or non-residential building . The document is formed through the cooperation of citizens or legal entities with developers. In the future, the buyer becomes the owner - immediately upon delivery of the object and its commissioning.
Such relations are regulated by law , namely Federal Law of December 30, 2004 No. 214-FZ. The presented act sets out the obligations of the parties. The buyer is required to contribute a certain amount of money, which the developer must use for further construction. It is upon the transfer of funds that the DDU is issued.
It is registered with the state body - Rosreestr , which gives the buyer the right to consider himself a legal shareholder. To carry out the procedure, the developer must submit all documents giving him the right to build the facility. If the shareholder knows how to check whether the DDU agreement is registered with Rosreestr, he can be confident in the legality of the developer’s actions.
Important! When registering, the developer submits to Rosreestr documents that confirm the legal status of the construction itself and its company (as an organization entitled to this). It is mandatory to prepare permitting statements for development: permission from the local municipality to use the land, a signed engineering plan of the structure, etc.
Why is it needed?
As already mentioned, in this way buyers can find out about the legality of the process. Moreover, if the developer suddenly has problems and the construction is “frozen,” shareholders will be able to prove the existence of ownership rights and receive compensation. In this case, participation must be registered in the register - only then the buyer becomes the full owner of the property.
Attention! The buyer is not recommended to transfer funds to the developer until the registration procedure has been completed with Rosreestr. Otherwise, the assignment of rights in shared construction cannot be considered legally protected.
Reasons for checking registration
Gives you the status of a shareholder and makes it possible to return your money. Without registering a DDU, you will not be considered a shareholder under the law, no matter how much money you actually invest in construction. And it will also be impossible to return money in case of unscrupulous construction.
Now many people are trying to get their own apartment. However, not everyone can afford to buy a ready-made home, even with a mortgage.
There are two ways to independently check the registration of an agreement in Rosreestr. This is possible 1-2 weeks after signing the document and transferring funds. The extract proves a person's ownership of the property at the time of request. The situation may change the next day.
Confirmation that the property has passed the contract registration check in Rosreestr is a stamp indicating the registration number and the corresponding signatures.
You can find out about the readiness of documents in Rosreestr at any time. To do this, it is advisable to order an extract from the Unified State Register of Real Estate on the official website of this institution.
In accordance with Law 214-FZ, simply signing an equity participation agreement (DPA) with the developer is not enough. The agreement is considered valid and comes into force only after its state registration by Rosreestr. It is from this moment that the buyer becomes a shareholder and can use all the methods of protecting rights provided by law.
Attention! If the developer refuses to provide complete information, it is better not to waste time and choose another housing option.
Registration deadlines
Starting from 2020, the period for registering a child-care facility has been reduced to 5 working days, but if submitted through the MFC, then 7 working days. However, if this is a primary contract, then 18 days, since they will check and enter the developer’s data into the register.
And finally: if a refusal to register is received, the reasons must be stated in it. Illegality of documents, bankruptcy of the developer, forgeries - all this is discovered at the registration stage and can cause refusal. That is why this procedure protects against fraud on the part of the developer even before depositing money into shared construction.
Why are registrations sometimes denied?
To successfully register an equity participation agreement with Rosreestr, both the shareholder and the developer must prepare the necessary package of papers. First of all, this is a permit for the construction of residential premises. It is not necessary to provide it, but it must be ready. The registrar will check this by contacting the authority that issued it.
Also state the body that controls shared-equity construction in a given region is obliged to confirm that the developer complies with all the requirements of current legislation. You will also need a house plan, which will indicate the number of floors, number of parking spaces, etc. The registrar will not forget to check the availability of a valid insurance contract or agreement with a credit institution.
Registration of an agreement may be refused if:
- there is a lack of any document that must be attached to the DDU;
- all the papers are available, but some of them are formatted incorrectly;
- the application for registration was submitted by a person who does not have the right to do so (this can be done by the shareholder, the construction company or their representatives acting under a notarized power of attorney).
In case of refusal to register an agreement, you will find out exactly the reason, the state. The authorities will definitely indicate it in the response letter to the applicant. If you believe that the reason for the refusal was unlawful, you may well go to court to restore justice. If Themis is on your side, the agreement will be registered, but this will delay the signing of the agreement and receipt of the coveted apartment.
How to find out if a contract is registered
There are few options for finding out whether an agreement has been registered. The surest way is to have a certifying signature, stamp and registration number on a copy of the contract. You can contact the developer directly, use numerous online services or multifunctional centers (MFCs) that provide services to the population.
It is mandatory for the shareholder and the developer to have an agreement with the appropriate registration mark in the Roregister, but the agreement may be lost or there may be reasonable doubt that the registration was carried out properly.
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A citizen must understand that shared housing construction has never been and never will be at the expense of his share and even the funds of the shareholders of the entire house under construction. Housing construction is a complex process that is impossible to complete without large investments.
It is not enough to have the right to a land plot, but also:
- Perform preparatory engineering and related work before construction.
- Prepare, adapt and coordinate all project documentation.
- Have established industrial connections for the supply of building materials.
- Provide a full cycle of construction administration and relations with government agencies.
To build a residential building, you need at least one major investment, without which no construction organization will begin construction. In some cases, a construction organization forms its own investment fund for the next construction project, but much more often free capital from third parties is attracted.
Precisely in view of the fact that many individuals and legal entities are involved in shared-equity construction, who are in dynamic relationships with government bodies, and the population’s interest in participating in shared-equity construction is rapidly growing, there is a problem of knowing whether a specific shared-share agreement has been registered.
We are talking not only about the fact that the agreement is registered, but also about:
- to whom – data of an individual;
- what structure is it connected to?
- who is the developer;
- registration date.
There is no guarantee that the developer’s demand to begin payments under the DDU to the shareholder is justified. Before paying the equity holder, you should be sure that the agreement has been certified by Rosreestr and his funds will be under reliable protection.
Some developers save on organizing the process of receiving payments from shareholders. One can understand them, money is constantly needed in construction, but we are talking about the personal funds of a citizen, even if it is a loan from a financial organization.
DDU is not an apartment, but a long process of obtaining it through construction, and this takes a significant amount of time. The shareholder must be absolutely sure that his funds and rights are under the protection of the state and that he will ultimately become the owner of the apartment (and this is cadastral registration).
Why do you need to check information?
It’s not for nothing that they say: trust, but verify. You should not blindly trust an organization that promises to register a contract.
Therefore, you need to know how to check your registration. It’s good if the company turned out to be conscientious and actually completed the deal. But, unfortunately, this is not always the case. There are still many defrauded investors.
If there is no immediate information about official registration, it makes sense to wait a little. Still, it takes time to go through bureaucratic procedures. If nothing has changed, if the contract is never registered, then all that remains is to go to court to demand the return of the funds paid.
Before going to court, you must order a paper extract.
A contract without registration is an ordinary piece of paper that means nothing. An unscrupulous company will be able to dispose of real estate at its discretion: resell it to other citizens, stop construction. Therefore, you can pay money only after official registration.