What is apartment privatization and why is it needed?

Maxim Frolov

Simple and accessible information about apartment privatization. Why do you need to privatize housing - The main stages and features of preparing documents and registering an agreement. General rules and costs, Advantages and disadvantages of privatization.

Until December 26, 1991, most citizens living on the territory of the USSR did not own their real estate, since it was essentially owned by the state.

After the USSR collapsed, a law was adopted that specified all the basic principles for the process of privatization of municipal and state housing stock for social use on the territory of the Russian Federation.

Now more than 80% of apartments in the country have already been transferred to privatized status. In this article we will understand what privatization of an apartment is, the necessary documents for it, who has the right to it, what is the tax on privatized housing, the price and how to privatize an apartment.

What is apartment privatization

Privatization of an apartment is a free Federal Law of February 22, 2021 No. 14-FZ “On invalidating certain provisions of legislative acts of the Russian Federation”, the transfer of real estate from state ownership to private ownership.
The program was launched in 1992. It was extended several times and finally made indefinite. It works like this. A person moves into an apartment that was allocated to him from the municipal or state housing stock, and becomes a kind of tenant. It’s just that he rents housing not from a private person, but from the authorities. And a person also pays for the use of real estate - only much lower than the commercial value. For example, in Moscow it is 26–29 Tariffs for housing and communal services for Moscow residents for 2021 / Department of Economic Policy and Development of the City of Moscow rubles per square meter, depending on proximity to the center. But the tenant does not dispose of the real estate, as well as a rented apartment.

In some cases (we’ll figure out which ones a little later), such housing can be privatized, that is, you can become its owner.

How privatization occurs in Moscow and St. Petersburg

The privatization of an apartment in Moscow is different in that, unlike many regions, citizens have the opportunity to submit documents both through Multifunctional Centers and through the official website of the Moscow Mayor.

Submitting an application for privatization online in Moscow is possible in the following cases:

The family consists only of adult citizens who have resided in the city of Moscow since July 21, 1991 or since birth;
There are no adults incapacitated or orphans in the family.

In St. Petersburg, the privatization process can be monitored on the regional website of public services, as well as by contacting Gorzhilobmen or the Multifunctional Center. Transfer of ownership of certain types of residential premises in St. Petersburg does not occur in certain situations:

The housing that is planned to be privatized is located in a closed military camp or is in disrepair;
Specialized premises (for example, a nursing home or foundation);
Premises located inside industrial facilities (schools, hospitals, boarding houses, etc.).

Non-privatized apartments belong to the state

Why is apartment privatization necessary?

After privatization, the new owner can do whatever he wants with the property.

To sell, donate or mortgage an apartment

When real estate belongs to the state, this, of course, cannot be done.

To leave housing as an inheritance

And to anyone. If the apartment is not privatized, this cannot be done. After the death of the responsible tenant, that is, the person with whom the authorities entered into a rental agreement, the relatives of this person will not be kicked out onto the street. But only if they lived in the apartment and were registered in it at the time of the death of the previous tenant. In this case, the state will extend the agreement with one of the family members.

If one person was registered in the apartment and he died, the property will be returned to municipal ownership in order to transfer it to a new tenant.

To leave the apartment empty

For some reason, a person may need to go to another region and obtain temporary registration there. Or go on a long trip abroad - for example, to study for several years. Or for some other reason, leave the apartment for a long time.

The only problem that can arise with your own home is the layer of dust that has accumulated during your absence. But when living in a state apartment, the authorities may decide that the person does not really need this property, since he has not used it for so long.

To register anyone

Literally: you can register whoever you want in your apartment. In non-privatized there are restrictions. Only a minor child will be able to register without delay.

The spouse, adult children and parents will be prescribed by the Housing Code of the Russian Federation, Article 70 “The right of the tenant to move other citizens into the residential premises he occupies under a social tenancy agreement as members of his family” with the written consent of everyone who already lives in the apartment. For others, the same permits will be required, as well as the landlord's approval.

Payment

For an apartment that you rent from the municipality or the state, you must pay not only utility bills, but also fees for the use of residential premises.

For example, in Moscow, starting from 2021, a fee has been established in the amount of 27.14 rubles per square meter of total living space in an apartment building with all amenities, with an elevator and a garbage chute. As a general rule, payments for housing and utilities are paid monthly by the tenth day of the month following the month to be paid.

It turns out that for an apartment on social rent with an area of 40 sq. m in Moscow you will have to pay 1086 rubles per month. Over the course of a year, this apartment will cost 13,027 rubles. Tax on a privatized apartment at a tax rate of 0.1% and a deduction of 20 sq. m will cost 1,400 rubles per year, assuming that the cadastral value of the apartment is 2,800,000 rubles. We calculate as follows: (2,800,000 RUR / 40 m²) × 20 m² = 1,400,000 RUR. This is the amount by which the state allows the tax base to be reduced. (2,800,000 R − 1,400,000 R) × 0.1% = 1,400 R is the amount of tax that you will have to pay for the apartment once a year.

It turns out that in terms of payment, privatized housing is more profitable than that provided under a social lease agreement. Perhaps in the future tax rates will be revised and increased, but the rent for rented premises may also increase.

In your own apartment, you can grant the right of permanent registration and residence to anyone, if the area of the apartment allows it. Only members of your family will be registered in the apartment in which you live under a social tenancy agreement.

Who can privatize an apartment

Getting housing for free is an attractive idea. But for this you need to meet several criteria.

A person who lives in an apartment on social rent

Not every housing complex of the Russian Federation can rent real estate from the state, Article 49 “Provision of residential premises under a social tenancy agreement.” To do this, the person must be registered as needing housing. When the social rental agreement is concluded, you can think about privatization.

However, sometimes an apartment may turn out to be state-owned for another reason. For example, a person moved into housing during the Soviet era, but over the past years has not bothered with privatization. Such a tenant can also exercise his right.

Russian citizen

Everything is clear here: what is the point of distributing housing to foreigners if not all citizens of the country are provided with it.

A person with the right to privatization

Every Russian has the right to privatize housing one Law of the Russian Federation dated May 4, 1991 No. 1541‑1 “On the privatization of housing stock in the Russian Federation” times. An exception is made for those who participated in privatization when they were minors. Then, after 18, such a person has the right to claim another object.

Anyone who lives in an apartment under a social tenancy agreement can participate in privatization. In this case, an adult tenant may refuse privatization. Then it will retain its right for another object. But minor residents participate in privatization by default. Refusal is allowed only with the permission of the guardianship authorities.

Important: a person who refuses privatization receives the Federal Law of December 29, 2004 No. 189-FZ “On the Entry into Force of the Housing Code of the Russian Federation” the right to lifelong residence in an apartment, regardless of the wishes of the owner.

Exceptions

Despite the clear provisions of the legal act “On Privatization,” there are still ways to re-engage in this procedure.

No.	Reasons for re-privatization
1	Privatization was carried out by a person before he reached the age of eighteen
2	The transfer of ownership of state property took place on a paid basis
3	Relocation of citizens from the regions of the Far North with the deprivatization of an apartment previously received from the state. However, even here there is an additional condition - if the apartment privatized there was given to someone as a gift or sold, then the right to reclaim ownership of the housing is lost.
4	Loss of previously privatized real estate due to man-made or natural disasters (flooding, the result of military operations or testing). There is also a condition that this apartment should not be transferred to third parties (sold, donated, etc.).
5	Availability of a court decision recognizing the contract for the transfer of an apartment to a private person as illegal and subject to cancellation

To date, the legislator does not provide other grounds for re-transfer of possession of residential premises.

What documents are needed to privatize an apartment?

It is better to find out the exact list of documents from the department that deals with privatization in your city. There is no general federal list. And in the regions they may ask for different papers. If you are interested, compare the requirements of Moscow Administrative regulations for the provision of public services of the city of Moscow “Privatization by citizens of residential premises of the housing stock of the city of Moscow” and St. Petersburg Order of the Housing Committee dated February 15, 2012 No. 106-r “On approval of the administrative regulations for the provision of public services ".

Here is a sample list for reference:

Application for transfer of state-owned residential premises into ownership through privatization.
Identification documents of the applicant and his family members who are registered with him in the apartment.
Social tenancy agreement or order for privatized housing.
Papers confirming citizenship.
Written consent to privatization or refusal from residents registered in the apartment.
Documents on family composition: certificates of marriage, birth of children.
Certificates confirming that the right to privatization was not used. Usually you need to contact your local administration to obtain the document.
Consent of parents or guardianship authorities if one of the future owners is a minor.

This list may expand depending on the circumstances and requirements of a particular department. Read the terms and conditions carefully and try to immediately collect all the necessary documents. Please note that some papers may have an expiration date.

Re-granting of privatization rights

Only those persons listed in the following list can count on re-privatization after deprivatization:

Adults participating in privatization as minors;
Persons whose transactions for the acquisition of property rights for citizens and their families have been declared invalid in court.
Resettlers from the Far North and former republics of the USSR who returned their housing to municipalities and the state based on the deprivatization procedure.

Thus, answering the question of whether it is possible to re-privatize an apartment after deprivatization, we emphasize that this is possible if deprivatization arose as a result of legal proceedings or if a person who did not receive such a right as an adult wants to privatize the apartment.

How to submit documents for privatization of an apartment

Documents are usually accepted by a body whose name includes property management - a city property management committee or something like that. But there are options. In St. Petersburg, for example, this is done by the privatization department of the St. Petersburg State Budgetary Institution “Gorzhilobmen”.

Papers can be brought directly to the department or submitted through the MFC. There is also a chance that the application will be accepted online. In St. Petersburg, you can send a document through the city government services portal, in Moscow - through the mayor’s website.

The decision on privatization must be made within a two-month period by the Law of the Russian Federation of July 4, 1991 No. 1541-1 “On the privatization of housing stock in the Russian Federation.” Based on the results of reviewing the documents, you will be given an agreement on the transfer of ownership of the apartment or will be refused with an explanation of the reasons.

The agreement must be signed by all participants in the privatization.

They can refuse only due to circumstances provided for by law. For example, you will be told that the premises cannot be privatized, since the house is recognized as unsafe. And in this case, it will be difficult to change anything. But if the matter is that the package of documents is incomplete, then you can submit the papers again.

How long does it take to make a decision?

The request for privatization is considered within 46 days. If the answer is positive, the applicant and everyone who receives a share in the property will have to appear at the MFC or the housing department of the municipality, even if the documents were submitted online. There, a contract for the transfer of ownership of the residential premises is personally handed over to you.

Those who submitted documents electronically will have to provide all originals to complete the procedure. To become a full owner, on the basis of a transfer agreement, you need to register the ownership of the purchased residential premises with Rosreestr.

How to become an owner after privatization of an apartment

An apartment transfer agreement is not enough. The process will be completed when the right to transfer ownership is recorded by Rosreestr. To do this, you need to apply with the contract directly to the department or through the multifunctional center.

Registration is required by the Tax Code of the Russian Federation Article 333.18. The procedure and deadlines for paying the state duty is to pay a state duty of two thousand rubles.

If there are several participants in the privatization, the payment is divided equally between them. And each person must pay his part.

What type of housing can be transferred into ownership?

Not all housing can be privatized; there are certain categories of living space that, without being transferred to another category, under no circumstances can become the property of citizens.

Restrictions

The list of housing that cannot be privatized includes:

service apartments;
located in emergency or dilapidated buildings;
which are museums and other objects of art or cultural heritage;
apartments in a building planned for reconstruction;
dorm rooms.

Another important nuance: it is impossible to transfer only part of an apartment, for example, leaving in state ownership a share belonging to a citizen who does not want privatization. It can only be transmitted all at once. Although there is another way: if the BTI recognizes the share as an independent piece of real estate, then the entire remaining area can then be privatized.

What to remember

If you live in an apartment under a social tenancy agreement or received it from the state during the Soviet era, then you can privatize this property, that is, receive it for free.
You can privatize housing once in your entire life. But if you participated in privatization when you were under 18 years old, then two.
Everyone registered in the apartment must sign a consent to privatization or refusal of it. If someone hesitates, nothing will come of it.
Minors participate in privatization by default. Refusal is possible only through the guardianship authorities.
The most important thing in privatization is to collect a complete package of documents. The local administration body responsible for the process knows what papers will be needed.

Who needs privatization of housing and land

The property is transferred free of charge to those who own it. However, upon registration you will need to pay 2000 rubles. state duty . Most often, a social tenancy agreement .