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

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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 privatization?

Who can be a party to the transaction

Upon privatization:

1. The first party is the state, represented by the body that owns the residential plot at the time of its transfer to people for rent.
2. The second party to the contractual relationship is those who use the lease, as well as the citizens living with it. They must have a residence permit.

The first and second parties independently distribute shares in the property for all registered family members according to percentage.

One person can do the registration. To do this, the consent of the people living together must be notarized.

Thus, at the legislative level, the rights of children to participate in privatization were protected.

Important. Parents must, based on the Federal Law “On Privatization,” determine the percentage share for minor children.

✅ What is property?

The difference between privatized housing and non-privatized housing

• registration includes collecting papers for the apartment. It is necessary to prepare a rental agreement;
• registration requires obtaining a waiver from other persons. Often there are several residents;
• the refusal must be made in writing;
• copies of personal documents are provided;
• You should collect papers certifying timely payment of utilities.

The procedure for privatization and non-privatization of housing is a complex process of formalizing the powers of the owner. It is the process of obtaining rights to one’s own home, country house, or land plot. The process consists of legitimizing the right of ownership of the relevant property.

✅ What is the difference between privatization and property rights?

Having defined the main characteristics of both concepts, it’s time to conduct a comparative analysis of them:

• The first thing that distinguishes privatization from property is the cost of the procedure.

The transfer of housing into the ownership of citizens itself is free. There is no need to buy an apartment or land from the state (see “How much does it cost to privatize an apartment?”). Buying property is an expensive undertaking. Thus, privatization (if it is not a buyout) is free, and the acquisition of housing into personal ownership under a purchase and sale agreement is paid (inheritance and donation are conditionally free).

• The second between privatization and registration of ownership is the subjects of the transaction.

Privatization of an apartment or plot involves contacting municipalities or departments, i.e. The state is always involved in the transaction. When registering housing as personal property, you are dealing with individuals or legal entities: grandchildren, heirs, grandparents, realtors - in a word, the previous owners of the property. The state is involved in rare cases.

• The third difference is real estate rights.

Privatization is available only to the employer and his family members. And only under a social rental agreement. Outsiders cannot participate in the transaction. The property does not have any special requirements. Do you have money for an apartment? Choose the option you like, pay and become the owner. Another thing is if it is a gift or inheritance - here you need to have certain rights to receive an apartment.

• The fourth and final difference is the methods of obtaining the object.

Privatization is available in one single form, while the acquisition of property is much broader: it includes purchase and sale, inheritance, and a gift agreement... In a word, there are a lot of options.

Example:

Bondarev was looking for the best way to acquire ownership of housing: privatization of an apartment or another method of transferring it into private ownership.

The conditions were as follows:

• Bondarev was the tenant of a one-room municipal apartment, which means he could theoretically privatize it.
• Bondarev had no relatives, which means he could not inherit a separate apartment, and, most likely, would hardly have received it as a gift.
• Bondarev saved up a certain amount of money - theoretically, he could purchase inexpensive housing on the secondary market, or buy living space from the state (slightly cheaper).

After weighing all the pros and cons, Bondarev settled on the option of free privatization of the apartment. There will be no need to buy the home from the state, which means the man will still have money left over for repairs. Bondarev was the sole tenant of a municipal apartment, which gives him the right to become the sole owner of the property. Subsequently, the man can sell the re-registered property and buy another home, but with a larger area and in a convenient area.

So there are plenty of differences. Property is a broader concept, and privatization is narrowly focused. Ownership allows you to dispose of the apartment at your own discretion. If housing is not privatized, it does not belong to a person.

How to buy a share in an apartment

You can easily find out that the apartment is in shared ownership: each owner is registered separately in the register , and the extract from the Unified State Register will indicate the size of the share.

If you decide to buy an entire apartment from shared owners, then the easiest way is to bring them all together and conclude one agreement. If you do not buy shares from all owners, this will be a little more difficult.

Things to consider

By law, co-owners have a priority right to receive an offer to purchase a share. In other words, before selling your part in the apartment to a stranger, you are obliged to offer to buy it out to other property owners.

To do this, notify the co-owners in writing about all the details of the planned sale. The terms of the transaction must be the same as for other buyers. The co-owners have one month to make a decision. Only after this can you sell your share.

If you are buying a share in an apartment, make sure that all the owners have refused the purchase. A refusal, like an offer to purchase a share, must be in writing, certified by a notary.

If the seller has violated the pre-emptive right of other owners to purchase, they can declare this within three months and transfer the buyer’s rights to themselves through the court. That is, if you do not check the written refusals of the co-owners, you risk losing the acquired share.

✅ “Question/Answer” section

Please tell me, I own an apartment. Can I privatize other housing for free if I have this property?

Expert opinion

Semyon Frolov

Lawyer. 7 years of experience. Specialization: family, inheritance, housing law.

Yes you can. For free privatization of housing, two conditions are sufficient. The first is the existence of a social rental agreement that you concluded with the city administration. Secondly, you have not previously participated in the privatization of housing. If these conditions are met, you can begin the procedure. And it doesn’t matter if you own another apartment?

There are 4 people registered in the apartment. What is the difference between privatization per person or in shares for each?

Expert opinion

Dmitry Nosikov

Lawyer. Specialization: family and housing law.

Privatization is the transfer of municipal property into private property. If 4 people are registered in the apartment, then they can claim a share in the privatized living space. Each of them has this right. But there is also the right to refuse to participate in privatization. Then the refuser’s share will be distributed among the remaining participants in the procedure.

• If housing goes to one person, and others write a refusal, the object will become individual property (refuseniks receive the right to lifelong residence in the apartment).
• Privatization of housing by two or more persons gives the right to choose - joint or shared ownership. Joint property is suitable for spouses, and shared property is suitable in any situation.
• If all four agree to privatization, each will get 1/4 share in the apartment. Housing can only be disposed of jointly, and your share - without regard to other co-owners.

Choose an option based on your personal relationships and future goals for the apartment.

Could you help me understand the issue of property and privatization? I am the owner of the apartment - according to the will. There is a certificate of ownership and all data is recorded in Rosreestr. But there is no information about privatization, and I receive payment documents from the housing office for the cooperative apartment. Is my apartment privatized? Or should I privatize it?

Expert opinion

Semyon Frolov

Lawyer. 7 years of experience. Specialization: family, inheritance, housing law.

If there is a certificate of ownership, it means the apartment is privately owned, i.e. privatized. You cannot inherit public housing. It does not belong to a person, and therefore is not included in the hereditary mass. Probably, in your case, they forgot to change the information in the housing office . Look on the receipt to see if there is a line “social rent”. If there is a dash in the column, it means the housing has been privatized. Contact the Housing Office office and report the discrepancy in status. They will tell you how to write an application and where to send it. The issue must be resolved quickly. We also recommend reading our article “How to find out whether an apartment is privatized or not?”

Are housing and communal services payments different in your own and privatized apartments? You don’t want to overpay, what should you choose?

Expert opinion

Dmitry Nosikov

Lawyer. Specialization: family and housing law.

According to paragraph 1 of Art. 154 of the Housing Code of the Russian Federation, the tenant and his family members in a municipal apartment bear two types of expenses - rent (rent) and maintenance of the apartment building. Roughly speaking, monthly rent of living space + expenses for gas, electricity, water and other services . Receipts are sent by the Management Company. In addition, if the housing is not owned, the receipt contains a mandatory column “social rent payment”. But there are no fees for major repairs and maintenance of MKD property. These costs are borne by the owner of social housing - the municipality. Co-owners of a privatized apartment do not pay for the use of housing, but bear the costs of major repairs. Which is better in terms of savings on housing and communal services? Definitely social housing.

Not everyone can understand private and municipal property.
Choosing in favor of one option or another is always difficult. Especially if a person wants to save on utility bills, get his share, donate or bequeath a home. Conflicts very often arise - with the administration, Rosreestr, Housing Office, Pension Fund and other services. If you need the help of a lawyer, ask a question - will the lawyer analyze the problem and tell you what to do? Consult with lawyers in any unclear situation. A balanced approach will ensure that you will not be left without housing and will make the right choice - privatization or ownership? Attention!

• Due to frequent changes in legislation, information sometimes becomes outdated faster than we can update it on the website.
• All cases are very individual and depend on many factors. Basic information does not guarantee a solution to your specific problems.

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Author of the article

Maxim Privalov

Lawyer. 2 years of experience. I specialize in civil disputes in the field of housing and family law.

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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 2021.

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.

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What is the difference between privatization and property rights interests many people who are planning to purchase housing in the near future. Despite the fact that the concepts are very similar to each other, they still have a number of fundamental differences. Let's figure out which ones exactly.

Is it possible to privatize a share in an apartment or house?

Any living space can be privatized into the common property of several persons or into the personal property of one party. An example of community property would be a house that is shared between multiple parties. In this case, the shares that belong to them are indicated, and in total they must be equal to one. A house or apartment is an integral object, therefore, such premises can be privatized either in the name of one person or in shared ownership of at least two persons. Accordingly, privatization of your separate share in the apartment is not feasible. Privatization of a shared nature may be in unequal shares if we are talking about a common decision of all interested parties. In such a situation, one should not forget about respecting the rights of children under the age of majority. Guardianship and trusteeship authorities are responsible for the infringement of the rights of minors, so they can refuse privatization to anyone, acting for the benefit of the children. There are also cases when one of the parties decides to refuse to privatize a share in the house. Then this share is divided among the rest of those wishing to privatize housing. A person who has already been a participant in the privatization program for another residential property does not have to issue a refusal, but simply provide all the necessary documents indicating a previously carried out privatization. And remember, if a citizen, for example, your spouse, refuses to privatize an apartment in someone else’s favor, then it will no longer be possible to discharge him from the privatized apartment!