Auction Mossotsgarantiya for the sale of apartments in Moscow

What is Mossotsgarantiya

Mossotsgarantiya is a public service established on the initiative of the Moscow Government on August 30, 1994. The full name of the municipal service is Moscow Social Guarantee. Currently it is a state unitary enterprise (SUE). Reports directly to the Department of Labor and Social Protection of the Moscow Population.

The main activity is the implementation of targeted social projects in order to ensure a normal standard of living for vulnerable categories of the population. Through the Mossotsgarantiya, the capital's government implements the most significant social urban programs. The work of the State Unitary Enterprise is carried out according to the following schemes:

• Lifetime maintenance agreements.
• Occupancy of social houses.
• Anti-corruption.

With the help of these measures, Mossotsgarantiya becomes the owner of residential premises. Subsequently, the apartments are sold through open auctions, in which almost anyone can take part.

Lifetime maintenance agreement with Mossotsgarantiya

This is one of the types of life annuity agreement provided for in Art. 601 Civil Code of the Russian Federation. Its essence lies in the fact that the owner of a residential space in Moscow enters into an agreement with Mossotsgarantiya, within the framework of which the real estate becomes the property of a unitary enterprise.

In return, the pensioner can count on lifelong support in cash and in kind. Until the expiration of the contract, the rent payer has no right to:

• Alienate real estate - sell, exchange, pledge.
• Register at the address of third parties - without obtaining the consent of the annuity recipient (pensioner).
• Reduce the amount of cash and in-kind support of the annuity recipient.

Thus, the homeowner ensures a normal standard of living, while retaining the right to live in the apartment for life. The program applies to pensioners who have reached 65 years of age, as well as to disabled people of groups I and II who have reached 60 years of age.

Moving into social housing in Moscow

Another form of purchasing apartments is Mossotsgarantiya in the capital region. The bottom line is that the pensioner transfers his apartment into the ownership of the city, and in return moves into comfortable social houses in the Maryino and Mitino districts.

Social homes have all the necessary infrastructure for a comfortable stay for older people. Everything that is most important for ensuring a decent standard of living for people with disabilities, including wheelchair users, is available here.

Residents of social housing are exempt from paying utility bills. Each resident is provided with a monthly allowance. At the same time, all social payments - pensions, benefits, additional sources of income - are completely retained by the pensioner.

The difference from the first option of selling an apartment to the state is that the pensioner loses the right to use his real estate from the moment the contract is concluded. After the contract is concluded, the owner of the apartment moves to one of the social houses.

The right to live in a social home remains with the resident for life. The disadvantage of this mechanism is its irreversibility. The apartment is put up for public auction after its previous owner has moved out.

Auction without obligation

The Kalinka Group company, interested in the new technology, decided to hold an auction for the sale of an apartment in the “House on Mosfilmovskaya”. The initial cost, in agreement with the owner, was set at 75 million rubles.

– This price is significantly lower than the market value of this apartment, although there are lots in the skyscraper of even lower value. To explain what the bets were placed on, we will look at the features of the house and pricing in it, says Ekaterina Rumyantseva, Chairman of the Board of Directors of Kalinka Group. – The house has an unusual configuration, its lines bend along the axis. Accordingly, the internal frame is quite complex and the apartments have some design features. For example, in some lots there are many pillars - structures that are load-bearing, as a result of which they cannot be dismantled. In one apartment there can be 4 or 8 of them, and the owner will have to play with them in the interior. Other apartments in this building do not have good views, and others do not have the best layout.

Apartment with an area of ​​168 sq. meters, put up for auction, has only one supporting structure. It is located on the 50th floor, which during construction was planned to be left “for our own people.” Here the highest ceilings are 5.3 meters against the standard 3.2, that is, if desired, the living space can be further increased by making a mezzanine. Floor-to-ceiling windows overlook the golf club and Mosfilmovsky pond; Moscow State University and Moscow City are visible from the living room.

Before the auction began, the apartment was withdrawn from sale for two weeks and an extensive advertising campaign was launched. Three days were then set for potential buyers to come and view the apartment.

An attempt to sell the apartment at auction this time was unsuccessful. We noted that buyers were distrustful of the auction; many of them did not rule out that the unfamiliar scheme could be fraudulent.

However, we managed to stir up interest in the property: in these three days, about 19 showings took place, and many offers were made to the owner. Unfortunately, he was not satisfied with the final price. The initial low price only attracts attention to the property, while in the owner’s head there is still a lower price level for which he is willing to sell his property.

Advantages of cooperation with Mossotsgaranty

State Unitary Enterprise Mossotsgarantiya is the only state enterprise working towards concluding lifelong maintenance agreements with dependents. Although private and commercial structures are not prohibited from engaging in such activities.

It is important to distinguish between lifelong maintenance agreements and lifelong rent of an apartment. In the second case, the pensioner receives only cash allowance, without food and the necessary set of household services. The Mossotsgarantiya works precisely in the direction of monetary and in-kind support for the recipient of the rent. Other benefits:

• A one-time payment of 3% of the market value of the residential premises.
• The ability to choose types of household and social services, as well as individuals and legal entities to provide these services.
• Increasing the salary taking into account the growth of the cost of living in Moscow.
• Full transparency of the transaction - falsification on the part of the state enterprise is excluded.
• Possibility of choosing the form and details for transferring the monthly amount of cash.

Non-state companies often offer more attractive conditions. But by collaborating with them, older people put themselves at great risk. The likelihood of finding scammers, especially in the capital, is always extremely high. Mossotsgarantiya covers all costs for completing the transaction, which is another significant advantage.

Assignment of mortgage

This is similar to an ordinary mortgage transaction, only the lending institution offers to choose a collateral apartment from special offers that the first owners were unable to pay.
These are attractive apartments, and with their purchase, the new owner also becomes a borrower. The incentive to make a purchase is the interest rate reduced by 1-2 points. The new owner of the apartment also pays market value for it, but at a more favorable mortgage rate.

If he had not agreed to purchase real estate from the bank list, the specialist would have provided a mortgage loan on general terms and without a reduced rate.

Andrey visited the bank's mortgage department with the firm intention of buying an apartment in the Singapore residential complex. However, the bank employee refused to issue him a loan for the desired property: a co-borrower was needed. The man did not want to turn to someone else to take out a loan. Then the mortgage department specialist offered to consider housing from the list of special offers.

This option involved re-issuing a mortgage loan to the buyer, who would also receive ownership of the apartment. Andrey agreed with this option. In addition, the proposed housing was close to work.

Important: this procedure is called “on-lending in one bank.” The buyer receives a loan from the bank's current lender. Of course, the seller and buyer can sign their purchase agreement using debt financing. In this case, the buyer saves on documents for the apartment, since it is already pledged to the bank.

Sale of apartments through free auctions

The Mossotsgarantiya functions to help older citizens in providing them with normal living conditions. The essence of the lifelong maintenance agreement with dependents is that after the death of the pensioner, his apartment becomes the property of the state. Next, the city authorities are holding an auction of apartments in Moscow, in which almost anyone can participate. The organizer of the auction is the Moscow Department of Competition Policy.

Consequently, the auction is state-owned, which guarantees its openness and accessibility for citizens wishing to purchase an apartment from the municipal housing stock. The difference in the way the state purchases housing from pensioners is as follows:

• When concluding a lifelong maintenance agreement with a dependent, the apartment is subject to sale only after the death of the pensioner - until this moment, the alienation of housing is possible only with the consent of its legal owner.
• When moving into social houses, apartments are subject to sale after signing the appropriate agreement with their owners.

Mossotsgaranty conducts the auction via the Internet. Reliable information about the auction can be found on the official website of the State Unitary Enterprise or by calling 8 . To participate in a free auction, you must go through the preparation procedure.

How to buy an apartment through the Mossotsgarantiya auction

Participation in the auction is open, but you can gain access to the auction after meeting the relevant requirements. Trading is held on two electronic platforms: Sberbank-AST and JSC EETP. The sequence of actions is as follows:

1. Receive and register an electronic digital signature (EDS) - the approximate time frame is 1-7 days.
2. Register on the electronic trading platform - registration time does not exceed 5 working days.
3. Top up your personal account - it is necessary to make a deposit of 5% for each lot at the auction.
4. Submit an application to participate in an electronic auction for the sale of real estate - the application is submitted in accordance with the rules of the selected electronic platform.
5. Take part in the electronic auction.

The results of the auction, with prices and addresses of sold objects, are posted on the Mossotsgarantiya website in the “Results” section. In terms of price, the initial (starting) price of the apartment is indicated here, as well as the final price for which it was sold.

Information sources:

• Official website of the Moscow Social Guarantee - link.
• Civil Code of the Russian Federation - link.

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about the author

Irina Rusanova - higher education at the International East European University in the direction of "Banking". Graduated with honors from the Russian Economic Institute named after G.V. Plekhanov with a major in Finance and Credit. Ten years of experience in leading Russian banks: Alfa-Bank, Renaissance Credit, Home Credit Bank, Delta Credit, ATB, Svyaznoy (closed). He is an analyst and expert of the Brobank service on banking and financial stability. [email protected]

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How the auction is conducted

The auction begins on the day and time designated by the trading platform. Each lot has its own “auction step” or “trading session step” - the amount by which each participant can increase the sale price of the apartment at one time. Usually the “step” is 0.2–1% of the initial cost of the apartment, according to the law - no more than 5%.

Within an hour after the start of the auction, each participant can agree to purchase property at the starting price. Then the auction is extended for the time set by the platform: in Sberbank-AST it is 10 minutes, in EETP it is 1 hour. During this time, any participant can raise the price of the apartment by one “step”. Then the time counter is reset and the auction continues.

The winner of the auction is the participant who offers the highest price for the apartment. He must pay the full price of the lot within five days after the end of the auction. An apartment can be purchased with a mortgage or using subsidies, such as maternity capital.

Comments: 2

Your comment (question) If you have questions about this article, you can tell us. Our team consists of only experienced experts and specialists with specialized education. We will try to help you in this topic:

Author of the article Irina Rusanova

Consultant, author Popovich Anna

Financial author Olga Pikhotskaya

1. Tatiana
   01/11/2021 at 23:43 Could there be fraud on the part of the Mossotsgarantiya? First, poison the person who entered into the annuity agreement and can I invite my notary whom I know?
   Reply ↓ Anna Popovich
   01/12/2021 at 15:16

   Dear Tatyana, the auction is held by the Moscow City Department and it is not possible to invite a third-party notary.

   Reply ↓