People buy apartments for a variety of purposes. Some people invest in real estate, others seek to acquire their own living space. Sometimes new housing is needed when moving from city to city. And it happens that people want to expand the existing area or, conversely, get rid of excess housing and benefit from it. If such housing turns out to be the only one, and the family has nowhere to live during the period of purchase and sale, they resort to a scheme such as the counter purchase of an apartment. Let's figure out what it is.
What does counter purchase of an apartment mean?
A counter-purchase of an apartment is a procedure as a result of which the seller sells the property and receives money for it, and immediately uses it to purchase a new home. In fact, two transactions are made: one for the sale of old real estate, the second for the purchase of a new one. They take place simultaneously or with a minimum interval of time.
Important! There may be several properties being sold or purchased. For example, in the event of a divorce, spouses can sell one apartment and purchase two others with the proceeds. Or vice versa - one owner can sell three apartments and in return buy only one larger area.
Features of the agreement
The counter purchase of an apartment differs from a regular transaction, and drawing up an agreement for this transaction also has its own characteristics. If we compare it with the purchase and sale, then there is one nuance that must be indicated in the document. Selling an apartment is possible only when purchasing another home. If a new apartment has already been found, this is also indicated in the contract. This is extremely important, because if purchasing a new home through this scheme does not work out, then it will be possible to return the previous apartment.
Another important point that must be included in the counterpurchase agreement is the deadline for vacating the premises. The most suitable scheme is the following: a person receives an oncoming living space and transports all his belongings there. A certain amount of time is given for this. Next, the home is transferred to the buyer.
When organizing a counter purchase of an apartment, it is extremely important to correctly perform all calculations. The fact is that when about 10 parties are involved in a transaction, each seller must be compensated and receive the due amount.
The difference between such transactions and other real estate transactions is that the funds are not transferred to anyone. They are taken into account in the cost of apartments, as provided for in signed contracts. Since some apartments require an additional payment, it can actually be passed on to the sellers. The amounts of additional payments are usually indicated in receipts, which are additionally prepared by the participants.
Please note that payments are also carried out in a special manner. All funds are placed in one cell, and each participant must use the package by signing it. In addition, you need to add receipts to the cell. When registration is completed, sellers are issued funds and buyers are given receipts.
Taking into account the above, we note that a counter purchase is a rather complex type of operation that requires effort and time. In order for the transaction to be successful, you need to involve professionals who understand all the nuances.
Counter purchase of an apartment in a new building
Apartments in new buildings are sold by developers under an equity participation agreement (DPA) or a sales and purchase agreement (SPA). The DDU is concluded if the house has not yet been put into operation. If there is already a certificate of commissioning, a WPC is drawn up.
Several transaction options are possible with the developer:
- Sale of old housing in exchange for new one. The construction company purchases the client's property and in return provides him with a new apartment.
- Sale of living space to an individual with subsequent purchase from the developer.
In both cases, two DCTs are issued if the construction has already been completed. In one contract, the client is the seller and the company is the buyer. On the second side, they change places.
If an individual buys an old home, the procedure will look like this:
- The owner-seller sells the property to another person by concluding a contract with him and taking a deposit or the full amount from him. Documents are submitted for registration.
- After the sale of the old home, a contractual agreement is drawn up with the developer, and the transfer of ownership is registered again.
Note! Selling an apartment against a new building will take less time from the developer. But it is unlikely that it will be possible to sell it for the average market price: a specialist will be invited to evaluate it, who will try to reduce the cost as much as possible.
Contents and sample agreement
When filling out a contract with an individual buyer and a developer, it is important to indicate the essential terms of the transaction, information about its subject and participants:
- Full name, date of birth, passport details, registration addresses of the buyer and seller.
- Name, address, INN, OGRN of the construction company.
- Information about the apartment: address, number of rooms, area, floor, cadastral number.
- Cost of housing, payment procedure and terms.
- Responsibility of the parties for violation of obligations.
- Rights and obligations of the parties to the transaction.
- Date of compilation and signature.
Sample contract
Documentation
To sell real estate the owner will need:
- passport;
- extract from the Unified State Register of Real Estate;
- title document;
- registration certificate
The buyer can also request a certificate of absence of debts for housing and communal services and an extract from the house register.
When acting as a buyer after selling a home, all you need is a passport.
How long does it take to sell an apartment?
Preliminary agreement for the purchase and sale of an apartment under a Sberbank mortgage
Options for transactions for the sale of apartments
Having engaged in the process of selection or alienation of property, a private person is faced with the professional terminology of the market. From experts you can learn that there are the following types of transactions:
- Alternative, in which several objects participate, and the money from the sale of the first is immediately invested in the purchase of the second.
- Free sale of an apartment is a transaction that ends with the alienation of one object;
- A chain involving several successive sales and acquisitions.
Each type of transaction requires different preparation time: selection of objects, preparation of documents and registration of apartments. Therefore, it is convenient to use mechanisms that simplify the process.
Counter purchase of an apartment on the secondary market
A counter transaction for the purchase and sale of real estate on the secondary market takes place according to the following scheme:
- The owner sells one apartment and at the same time finds another.
- If a new home is found, but the old one has not yet been sold, a preliminary agreement is concluded, according to which the owner undertakes to purchase the apartment immediately after the sale of his home.
- There is a buyer for the old apartment, a contract is signed with him, and the documents are sent for registration.
- Simultaneously with the execution of one contract, another is concluded, but with the seller of the new living space.
- Calculations are being made.
Example: A woman decided to sell her apartment and buy a house. The advertisement has been posted. While potential buyers came for inspection, she found a suitable house and entered into a pre-sale agreement, according to which she undertakes to complete the main contract with the seller within 6 months.
A buyer for the apartment was found after 3 months. Immediately after the settlements, the woman signed a contract with the seller of the house.
Legal advice: drawing up a pre-contract with the seller of a new property when the old one has not yet been sold is always a risk. If a person does not manage to sell his home within the established time frame, he will still have to enter into a basic contract with the seller and look for money to pay off. It is better to carefully weigh everything before such a transaction.
Contents and sample of the preliminary agreement
The pre-contract contains the same information as in the main example presented above. But the parties are obliged to indicate within what period the main DCP must be drawn up.
Desires and possibilities
A counter-purchase is not the easiest option to change your living conditions. For example, you can use other methods to improve. For example, you can take out a mortgage or installment plan. And when the old apartment is sold, contribute this money to repay the loan.
To determine if trade-in is right for you, use these tips:
- Conduct your own housing market research. Understand what you have and what you want to get in the end. Assess the possible amount of additional payment or benefit when concluding a transaction. If you own a standard or, as it is also called, standard housing, then on websites or in newspapers you can find many options with an approximate price.
- Decide whether you can carry out the transaction yourself. We recommend contacting specialists. Counterselling gives too many opportunities to unscrupulous people.
- Calculate whether you will have to pay taxes. If yes, do not forget that all responsibility for timely completed declaration and payments lies with you. Don't forget about this when planning your expenses.
But the best thing to do is consult with an experienced real estate professional. He will be able to explain to you what you can expect, in what time frame, and how profitable such a deal will be in your case.
Apartment exchange with surcharge
If two parties are involved in a transaction and instead of a written contract they draw up an exchange agreement, both simultaneously act as both sellers and buyers.
By law, both participants are obliged to transfer housing to each other with or without additional payment. What does a counterpurchase look like under an exchange agreement:
- One owner finds another and agrees to inspect the property.
- If both parties are satisfied with everything, an exchange agreement is drawn up.
- Documents are submitted for registration. The transfer of ownership of both apartments is registered simultaneously.
Important! Exchange transactions are regulated by Ch. 31 Civil Code of the Russian Federation. The parties have the right to independently determine the cost of their housing. If an agreement cannot be reached, they can resort to the services of an appraiser, and divide the costs equally.
Contents and sample agreement
The exchange agreement must indicate:
- Information about the participants in the transaction.
- Information about real estate objects.
- Amount to be paid additionally, payment method and terms.
- Cost of both objects.
- Procedure for changing and terminating the contract.
- Guarantees of the parties to the transaction.
- Rights and responsibilities under the contract.
- Date and place of preparation, signatures of the parties.
Documentation
To formalize the exchange agreement, both parties are required to submit a complete package of documents for their apartments and passports. You will need technical passports, extracts from the Unified State Register, and title documents. Certificates of absence of utility debts and extracts from house books are also provided to confirm that no one is registered in the living space.
How to register ownership rights during the counter purchase of an apartment?
When purchasing real estate at the same time, documents are submitted to register the transfer of ownership only after signing the DCT or exchange agreement.
What should be done:
- Make an appointment at Rosreestr or MFC.
- Come on the appointed day to submit documents. The presence of all participants in the transaction is required.
- Sign applications and submit documents.
- Wait until the registration of the transfer of ownership is completed.
As a result, a new extract from the Unified State Register and an agreement with a registration note must be issued.
Documentation
The registrar is provided with a third copy of the DCP (the other two remain with the seller and buyer). You will also need passports, title documents, and a registration certificate.
State duty
The registration fee is paid by the buyer - 2,000 rubles. For organizations it is higher – 22,000 rubles. According to the exchange agreement, 2,000 rubles. Both the seller and the buyer pay immediately, since the transfer of ownership is registered simultaneously for two objects.
Deadlines
If you contact the MFC, registration will take 9 working days. If you submit documents to Rosreestr directly, the period is reduced to 7 working days. If the contract is certified by a notary, he himself will transfer the documents to Rosreestr, and the period will be reduced to 3 working days.
Advantages of counter transactions
Selling with a counterpurchase has several advantages:
- Quick check-in. If the documents are signed by all participants at the same time, you will be able to move to a new apartment immediately after registering ownership and handing over the keys.
- Saving. For support of two simultaneous transactions, realtors will take more money than for one, but less than for two different transactions completed over a long period of time.
There is also a drawback. This is complexity and the possible formation of a long chain of participants, which makes the deal likely to fail. The parties depend on each other, and if one refuses to sign the contract, they will have to look for other housing options.
How to find a buyer or seller
In Krasnodar, the market is now focused on the most affordable housing sector. Keep this in mind if you are putting a large apartment up for sale. The more expensive your home, the longer you will have to wait for buyers. We recommend that you first put your apartment up for sale, and only then start looking for housing to suit your taste.
Keep in mind that as soon as you put your property up for sale, the first visitors will be the so-called “tourists” in realtor parlance. These are either those who are simply asking the price, or representatives of real estate agencies. Moreover, there will most likely be more agents.
Try to find out during the telephone conversation for what purpose the person is interested in housing, and what he can offer in return. This way you will significantly save your time.
At the same time, evaluate the price yourself. You can also become a “tourist” and look at different options. Perhaps this option will help you quickly find that same partner in the counterpurchase transaction.
And best of all, save time and effort. Specialists are always ready to help in finding the best options for selling an apartment with a counter purchase. This procedure is not easy, including from a legal point of view, it requires certain experience and knowledge. You can do some things yourself, but at the stage of working with documents you still cannot do without specialists.
Lawyer's answers to frequently asked questions
How to pay taxes when purchasing an apartment?
If the seller owned the sold apartment for more than 5 years, he is exempt from paying personal income tax. Personal income tax of 13% is paid on income calculated from the difference between the purchase price and the proceeds. Expenses for the purchase of sold housing will have to be supported by documents.
If there are no supporting documents, you can take advantage of a tax deduction in the amount of RUB 1,000,000. to reduce the tax base. This amount is deducted from the proceeds.
I agreed with a person on the counter sale of real estate in my favor, but at the last moment he canceled everything. What to do?
If the agreement is oral, nothing can be done - no one has the right to force a person to enter into an agreement. If a preliminary agreement was drawn up with or without a deposit, you can demand the conclusion of the main one through the court.
Is it possible to easily purchase a home for a child if his other apartment is for sale?
Yes. Counter transactions are most often used when selling real estate to minors. According to the law, they must be provided with equivalent housing; without this, the guardianship authority will not give permission to sell.
In 2015, my husband received an apartment under a gift agreement, a year later they sold it and bought another one for an equal price. We are going to get a divorce now. Can I claim a purchased apartment if it was purchased with money received from the sale of a gift?
In theory, this is possible, but in practice, the spouse can prove in court that the property was acquired using funds from the sale of a donated apartment, and it will not be possible to divide it.
We are going to buy a two-room apartment, they buy a one-room apartment from us with our additional payment. What is better: to issue two DCTs for each transaction, or one exchange agreement?
It’s easier to draw up two DCTs; this is more common for both realtors and participants in the transaction. But if the exchange agreement is contested, all parties will receive their property back without losing anything. If the contract is disputed, there is a chance that the housing will be returned to the seller, and the buyer will receive compensation for its cost for several more years.
Buyer and seller at the same time
A counter-purchase of housing is a transaction for the purchase and sale of real estate in which the seller of the property simultaneously acts as a buyer. This is a complex chain of operations in which a person, using the money received from the sale of his square meters, simultaneously purchases a new home. Such transactions are usually complex and almost impossible to carry out without the help of a realtor.
In principle, you can try and make a counter purchase yourself; such “exchanges” are possible by mutual agreement. But this is where difficulties may arise:
- Synchronization of actions. You need to buy new real estate in a short time. The price of real estate changes very quickly on the market. And you risk finding yourself in a situation where the proceeds are not enough to purchase the desired square meters.
- Documenting. The contract must specify the timing of the transfer of funds, as well as the possibility of subsequent residence in the already sold housing for a certain time.
- Checking the “purity” of the transaction. Sometimes several buyers-sellers participate in such chains. As in “complex exchanges” known since Soviet times. And here additional risks arise of being victims of unscrupulous participants in the transaction.
It is best to use the services of reliable specialists when participating in such chains, and then all risks will be minimized.
