The law defines unfinished construction of a residential building as a building that has not been put into operation. In this case, it does not really matter whether the house is half completed or whether construction has just begun. And all because many are faced with an unpleasant situation when the construction of a residential building has to be stopped. The reasons may be very different, but the main thing is to know how to correctly register such an “unfinished project”. An important factor is the availability of rights to the land where the facility is being built. This may be a right of ownership, a right of inheritance or a right of lease.
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Registration of unfinished house construction
You should know that in 2004, amendments to the Civil Code were adopted, according to which all unfinished construction projects are now classified as real estate. Previously, such registration took place exclusively through the courts. To draw up a document confirming land ownership, you need:
- technical inventory of the facility;
- cadastral passport.
In addition, it is impossible to register a residential building that is an unauthorized construction. The law defines this as:
- construction on land having another purpose;
- construction without permission;
- construction in violation of important rules and regulations.
The owner of such a building cannot acquire ownership rights. Construction can be recognized as legal through the court, or by obtaining the appropriate permission from the executive authorities. For such permission you must have an impressive package of documents. There is another option - to register the unfinished construction of a residential building; alternatively, you can submit documents to the BTI, whose specialists will take care of all the problems with legitimizing the unfinished construction project.
Important: the intended purpose of the site is also important.
In other words, if a piece of land is intended only for the production of various agricultural products, then building residential premises on it is prohibited. Therefore, it is better not to take risks by starting construction of a house on land that is not intended for this.
Registration of an unfinished property
The need to register an unfinished building for cadastral registration may arise in several cases.
:
- upon sale
— when connecting communications to the property (gas)
- to transfer the leased land plot into ownership
After the cadastral registration of an unfinished construction project, the tax on it will be lower than on a completed construction project. The tax on an unfinished construction project is 0.1% of the cadastral value of the property.
! To register an unfinished property for cadastral registration, you will need to order a technical house plan for the unfinished property. The technical plan is carried out by a cadastral engineer who has the necessary qualifications and is a member of the SRO. To prepare a technical plan, it is necessary for an engineer to visit the site, take the necessary measurements, study the provided documents and request other necessary data.
! To register an unfinished residential building, in addition to title documents and a technical plan, a notification of the start of construction will be required.
Tax deduction
For the purchase of real estate, you can receive a tax deduction for the construction of a residential building or for its completion. The amount of tax deduction depends on the value of the purchased property and is 13%.
Tax deductions can be obtained for the following types of work and cost items
:
- acquisition of land for construction
- purchase of an unfinished construction project (residential building)
- ordering and payment of design and estimate documents
- construction and connection to general engineering networks and communications (electricity, water, sewerage, gas)
- construction of autonomous networks and communications
- construction/finishing materials and work
! You can receive a tax deduction only for a residential building; the tax deduction does not apply to a building designated as a “residential building”.
Advantages and disadvantages of buying an unfinished house
+ The advantages of purchasing an unfinished property at a high degree of readiness of the property include the ability to choose finishing and erect interior partitions at your own discretion. It will also be possible to identify design flaws and, if necessary, correct them before finishing work begins.
+ The cost of a plot with building materials or an unfinished construction project is an order of magnitude lower than buying a plot with a house already built and registered.
— However, there are also disadvantages: the buyer will have to bear the material costs of completing the construction of the object and registering the object with cadastral registration (registration of rights to it).
— When purchasing a registered unfinished property, the new owner will pay taxes on the property
— When choosing a site with unfinished construction, it is necessary to carefully study the design of the house and its location on the site, so that in the future there will be no problems with registering the house and registering it with the cadastral register.
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Tags: MOBTI, Moscow region, unfinished, 2020
Documents for registration of unfinished house construction
To complete the registration procedure as quickly as possible, you should take the package of documents seriously. In order to register a residential building, you must have the following documents:
- building permit;
- statement;
- cadastral passport for the object;
- receipt of payment of state duty;
- power of attorney certified by a notary (if the applicant is a third party);
- document establishing the right to land.
A cadastral passport for the land itself is not needed if all rights to it were previously registered. All documents can be submitted in person, through third parties or by mail.
Important: when choosing the last option for transferring papers, do not forget that the sender’s personal signature on them must be notarized.
Registration of rights to an unfinished construction project in Moscow and the Moscow region
Registration of an unfinished construction project is a process from registration of unfinished construction in the cadastral register to obtaining ownership rights to the public construction site, indicating the level of readiness of the building as a percentage. According to the law, it is possible to register ownership rights not only for real estate objects that have already been put into operation.
The procedure for registering rights can also be carried out for objects of unfinished construction or abbreviated ONS.
However, in order to carry out such a process with an unfinished building, it must be registered in the cadastral register with Rosreestr.
This is possible with one condition that the technical plan of such real estate will contain information confirming a certain level of readiness of the building and its structures.
As you already understand, the process of registering the ONS takes place in Rosreestr.
➤ After the data about it is transferred to the Unified State Register of Real Estate and the property is assigned a cadastral number, the owner will have the right to do whatever he needs with his property:
- ✔ sell
- ✔ give
- ✔ include in inheritance
- ✔ use as collateral
- ✔ carry out assessment procedures in relation to an unfinished construction project for an investment project, obtaining a bank loan
- ✔ put the property up for bankruptcy auction, prepare for litigation
registration of ONS
Our company provides a service - registration of an unfinished construction project in Moscow and the Moscow region, we guarantee a professional approach to work, low prices and successful completion of the procedure within the agreed time frame.
What is work in progress in construction?
In the legislative framework of the Russian Federation, it is difficult to find a single definition of such a term as “unfinished construction”.
Nevertheless, in the practice of lawyers, an opinion has already been established about which buildings can be classified as unfinished.
The definition, although not entirely clear, follows from the articles of the Civil Code of the Russian Federation and the Town Planning Code of the Russian Federation.
Which building is considered unfinished?
A building that has the following characteristics is considered unfinished:
- The object is not temporary, but capital in nature. In other words, the building has a foundation, so stationary stalls and kiosks are automatically excluded from the list of unfinished items.
- The building is not yet finished; work is underway on it. In this case, the construction stage is not taken into account; this could be the construction of the foundation, wall blocks, or the finishing touches to the interior decoration of the premises.
- Construction is frozen until a certain or unspecified date due to lack of financial resources.
Summarizing the above characteristics, we conclude: an object that is unfinished as a result of construction is a building whose installation and finishing have not been completed. However, this unfinished object has the most important thing - a foundation.
It is the foundation, according to lawyers and legislators, that is a sign that what has been built cannot be moved without causing damage. Therefore, we are dealing with an immovable object.
Can land be seized from the owner?
Yes . The Land Code contains a provision on the termination of the right to a land plot. If a land plot granted with the right of permanent (indefinite) use or lifelong inheritable possession is not used for 3 years, then it may be seized .
A plot can also be confiscated if the land is not used for its intended purpose. For example, a site is allocated for agriculture, and a store is built there, or an activity organized on the site is harmful to the environment (for example, a car wash operates).
Is it possible to build two houses on one plot? Or will one have to be demolished?
Theoretically, it is possible to build two houses on one plot of land.
But only in compliance with the norms of land and town planning legislation, building codes and regulations, in particular, the area of the land plot should allow such construction. If “the land plot does not physically allow the construction of a second residential building on it, since the necessary setbacks from the boundaries and other norms and rules (for example, fire safety) are not observed,” then one of the houses will be recommended to be demolished. But you can try to recognize the right to a second home in court.”
List of documents for registration of ONS
The procedure requires collecting the following documents:
- ✔ Construction permit.
- ✔ Documents confirming the right to land.
- ✔ Technical plan.
The owner of the unfinished construction project can request and receive documentation from the first two points himself.
But the technical plan is the prerogative of the cadastral engineer.
Our company employs experienced surveyors; they will develop a high-quality technical plan for your property with a mandatory mention of the degree of readiness of the structure.
technical plan for unfinished construction
Experts will create a portfolio of documents required for registering an ONS in Moscow and the Moscow region for your specific case and transfer it to Rosreestr.
Stages of registering an unfinished construction project in Moscow and the Moscow region
To obtain rights to an unfinished property, you must follow a certain algorithm. Or contact our company, our specialists will go through all the stages independently and bring the procedure for registering rights to an unfinished property in Moscow and the Moscow region to its logical conclusion.
➥ Preparation of a package of documents, which will include papers confirming land ownership. As well as permission to construct a property;
➥ Preparation of a technical plan;
➥ Work of a cadastral engineer on the site: study of the ONS, measurement work, calculations;
➥ Drawing up a technical plan with a detailed description of the technical parameters of an unfinished construction project;
➥ Transfer of the technical plan to Rosreestr;
➥ Obtaining an extract from the Unified State Register of Real Estate with an individual cadastral number of the ONS. The extract will become a confirmation for the owner of his rights to the unfinished construction project.
Construction in progress
