Privatization of a private house and land: how, why and who benefits from it?

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Privatization has been going on in the country for many years and not even the first decade, but many plots and houses on them still remain unprivatized. Because of this, a person cannot fully manage his own property. What to do in such a situation? How to privatize a house and land? What do you need for this? Read in this article.

What is home privatization

Privatization refers to the transfer of ownership of a plot/house to a specific person (in this case, often an individual rather than a legal entity). After privatization, a person gets the opportunity to dispose of his new property as he pleases: use it for its intended purpose, sell it, rent it out, demolish it and build something else.

The process of privatization (or, as it is also called, denationalization) is regulated by Federal Laws No. 178 of 2001 and 1541-1 of 1991. For a long time, the procedure was urgent and placed users of non-privatized property within strict limits. In 2021, changes were made to the current legislation No. 14-FZ, within the framework of which privatization became indefinite. Now there is no need to rush anywhere. You can gradually collect all the necessary papers and only then begin the procedure.

Initially, it was planned to extend the privatization period until 2020 so that the residents of Crimea could carry it out, but the President chose a more optimal and simpler option with indefinite privatization, which would allow never to return to this issue.

How is the transfer of property into ownership determined by the legislation of the Russian Federation?

Privatization is understood as a legal procedure, the result of which is the complete or partial transfer of property by the state into private hands.

The procedure and means for implementing this process in Russia are described in the Federal Law of December 21, 2001 No. 178-FZ “On the privatization of state and municipal property.”
It states that this is a paid process of transferring property owned by the state to the ownership of legal or private persons. The law defines as state property the category of property that belongs to the Russian Federation, its constituent entities and municipalities.

The possibilities of privatization of private housing in the Russian Federation are also regulated by Federal Law No. 1541-1 “On the privatization of housing stock on the territory of Russia.”

Is it possible, is it necessary and why to privatize a private house with a plot of land?

According to Law No. 1541-1, every citizen of Russia who in one way or another owns or uses state/municipal property (in this case, a plot and a house) has the right to privatize it and receive full ownership.

Example: A person received a plot of land from the state for an indefinite lease. In fact, he is not yet its owner and therefore cannot sell it or pass it on by inheritance. A person builds a residential building on a plot of land, equips it, and so on. Despite the fact that the house actually belongs to him, due to the non-privatized plot, this does not play any role. Suppose a person dies. The plot is not inherited; as a result, it will be managed by the state/municipality. If other people need the land, for example, to build a shopping center, they will simply evict the residents of the house and demolish it with full right, since the home ownership, it turns out, has already been built on someone else’s land. Thus, it is not only possible, but also necessary to privatize the site, otherwise you can lose everything.

After the plot and the house on it become privatized, no one will be able to take them away, destroy them, and so on. The owner can sell the territory, rent it out or pass it on by inheritance.

Privatization also has one disadvantage. The owner will be required to pay real estate taxes. Fortunately, it is not too large and is only paid once a year.

Content

1. Is it possible to do without the procedure of privatization of a land plot?
2. Grounds for transferring land from the state to the owner of the house

3. Who is denied land privatization and in what situations?

4. Algorithm for privatization of land under a private house

5. List of documentation attached to the application

6. What to do if the house and plot have several owners?

A private house is built on a plot of land, which may belong either to the owner of the building or to the state represented by the municipality.
It turns out that the owner finds himself in his house on someone else's land: he uses the plot with the authorities on the basis of a certain agreement, that is, he can own the land and dispose of it. There is only one way out in this situation - to transfer the land from municipal ownership to the ownership of an individual (privatization). Privatization is a process of property transformation. One party (an individual) receives or buys from the other party (the state) certain property - in our case, a land plot. One of the parties must be an organization, even if it is a municipality. The land under a private house passes into the hands of its owner completely free of charge. This procedure is well-established, does not involve delays, and is accessible even to foreigners.

Conditions

In order to privatize a house, you first need to decide whether it will be considered a country house or a full-fledged home. The difference is that it is impossible to register in a summer cottage, but there are significantly fewer requirements regarding communications. You can register in a residential building, but the requirements for it are higher.

In addition, the following conditions must be met:

• The site on which the house is located does not belong to environmental protection or any other territory, the privatization of which is prohibited.
• Persons who participate in this privatization have not previously exercised their right. That is, they have no other housing obtained as a result of privatization.
• The property and plot have all the necessary documents. If a house is built without permission from the relevant authorities, it will first have to be legalized.

How to privatize a residential building and land?

For the reasons stated above, there is little point in privatizing just the house. The procedure must affect both the property and the site on which it is located. It is quite logical that one should start with the land and only then deal with housing.

Privatization procedure, step-by-step instructions

1. Preparation of all necessary papers.
2. Registration of a cadastral passport for land and a technical passport for a house in the village.
3. Submitting an application and papers to the appropriate authority.
4. Obtaining a resolution.
5. Registration of land and house.

Procedure

Let's look at the steps presented above in more detail.

Preparation of papers

The potential owner involved in privatization must collect all the documents according to the list presented below. If there are no papers on hand or some part of them is missing, it makes sense to clarify this issue with local authorities.

Example : A plot of land with a house is located on the territory of a gardening community. Some of the documentation may be managed.

If a plot with a house is located in a rural area, there is a small chance that it does not appear on cadastral maps at all and will first need to be registered and only then privatized.

Passports

Registration of a cadastral and technical passport is a mandatory procedure. She is also the most expensive. You need to submit a request, wait until the specialist arrives and do his job, wait until he prepares the documents and only then can you move on. Depending on the region of residence, the workload of responsible employees, as well as the amount of payment, this procedure can last from several days to several months.

Statement

Depending on where exactly the house and plot are located, you need to submit an application to either the local or the federal administration.

Example: If the site is located within the city limits or close to it, then you need to work with local authorities. If it is located far from any populated area and does not belong to any of them, then the federal authorities will deal with the issue. There are no special advantages or disadvantages here, but the address will change.

Resolution

After all documents have been submitted, they are checked for accuracy and only then a decision is made to transfer the plot with the house into ownership.

Registration

The resolution must be submitted to the real estate registration authorities, after which the property will finally acquire the desired status of personal property.

Peculiarities

Registration of ownership of a private house has various nuances depending on what kind of private house it is and whether it is planned to privatize only it or together with the land under it. The following options are possible:

• a full-fledged residential building without land;
• residential building with land;
• country house with land;
• country house without land.

If a citizen plans to register in the future at this address, then his house must meet the following requirements:

1. It must have a full foundation and strong walls without visible cracks or damage, as well as a full roof covering the entire house.
2. The house must have living and utility rooms.
3. Internal ceilings and walls must be made of durable materials and not pose a threat to the life and health of its inhabitants.
4. All necessary communications must be carried out and work properly; if it is not possible to install a toilet, it must be located on the street.
5. The temperature in the house should be at least 18 degrees, and the humidity no more than 80 percent.
6. The house must have a heating system and thermal insulation.

Depending on these conditions, there are 2 options for how to privatize it:

1. Like a residential building.
2. Like a country house.

The process of privatization of a private residential building will take quite a long time. Therefore, many citizens prefer to seek help from lawyers. Using a notarized power of attorney, for a fee, they will register ownership of a private house without wasting the owner’s time on it. But if you don’t want to pay money to intermediaries, you can privatize a residential building yourself.

What documents are needed to privatize a house?

• Passport of the potential owner who uses the site for any reason. If there are several owners, then you need a passport for each of them.
• In the case where the applicant belongs to the preferential category, an additional document is required confirming the existence of the benefit.
• Application in the prescribed form. To be filled out on the spot, according to the template provided.
• If the residents of the house live in it under a social tenancy agreement, then this is also needed. In such a situation, written consent of all residents will also be required, including children over 14 years of age.
• Extended extract from the house register (if one exists).
• Technical plan and cadastral passport.
• Confirmation of the fact of non-participation in privatization in the past (certificate No. 3).
• A document confirming the grounds for using the site (for example, a perpetual lease agreement).

Procedure

The standard mechanism of action in 2021 is as follows:

1. You need to collect all the necessary documentation.
2. Next, a statement is drawn up.
3. The generated package of documents is submitted to the authorized body.

Based on the received document, the authorized body will make a decision regarding the transfer of real estate to private ownership.

What documents are needed?

The standard package of documents includes:

• applicant's internal passport;
• a certificate drawn up in Form 3, which confirms the absence of previous participation;
• technical passport and other documentation from the BTI;
• completed application;
• resolution regarding the transfer of the house into private ownership;
• legal documentation regarding residence in the house, for example, a social rental agreement, and so on.

The authorized body may require the provision of additional documentation, which is provided for by the legislation of the Russian Federation.

A sample social tenancy agreement is here.

Statement

Drawing up an application confirms the desire of Russian citizens to transfer the house from state ownership to private ownership.

In order to minimize the risk of entering false information, it is recommended to refer to a sample application.

A sample application for privatization of a house is here.

Consent of residents

The privatization process can only be initiated with the consent of all persons living in the property without exception.

The interests of minor children are represented in such a situation by parents or other legal representatives - guardians, adoptive parents.

Citizens who take part in the procedure do not give their permission.

Conclusion of an agreement

At the final stage of privatization, the citizen signs an agreement with the authorized body, on the basis of which the rights to housing are transferred to the participants in the process.

Such an agreement must be subject to notarization within the first 12 months from the date of its formation.

A sample privatization agreement is here.

Registration of ownership

After the participants in the process have received rights to the house, they must be registered with Rosreestr.

Upon completion of the registration procedure, participants are provided with a corresponding certificate.

Each privatization participant is issued one copy of the certificate.

Price

How much does privatization cost? Formally, from the point of view of current legislation, this procedure is generally free. However, you will actually have to pay. And a lot:

• The registration itself will cost 2,000 rubles.
• The BTI will issue a registration certificate for 1,200 rubles (and if you need it urgently, you will have to pay extra separately).
• A cadastral passport will cost another 200 rubles.
• If one of the residents refuses privatization, then you need to provide a corresponding refusal, certified by a notary. And this is another 1000 rubles for each person.

On average, the procedure costs about 4-5 thousand rubles.

Useful videos

Watch a video about how to practically privatize a land plot, collecting land management documentation, source: INGER-GRAD Continuing - how to register a cadastral number and obtain land ownership, source: INGER-GRAD

Information on the terms of free privatization of land, as well as the nuances of registering property rights, a video from the channel “ Country Real Estate ” The opportunity to become a full-fledged owner of your home and land is the main advantage that privatization gives a person. While this procedure is free, it is definitely worth using it, especially since the benefits in this case are obvious.

How to privatize a house without documents?

It is not uncommon to encounter a situation where there are no documents at all for a house (or even a plot of land). It’s one thing if they are simply lost: they will need to be restored, which will also take time and will not be done for free. And it’s a completely different matter if there are no documents at all. This can happen if initially no one needed the plot, the person chose it for himself without permission, built a house on it himself, without asking permission from the regulatory authorities, and lives quietly in it. In this case, before proceeding with the privatization procedure, it is necessary to legalize the future property:

1. Add the plot to the cadastral map and register its lease. Alternatively, you can try to buy it straight away.
2. Require the court to recognize the house as not being self-developed. This is the most “slippery” part, since instead of recognizing the house, they may be required to demolish it at their own expense. This is rare, but the possibility is still worth considering.
3. Only after this will it be possible to collect all the necessary documents and submit an application for privatization.

Possible problems

Housing committee employees do not always issue permission for privatization. Refusal is possible in the following cases:

• indication of false data in the application or declaration for the house;
• submission of an incomplete package of documentation;
• encumbrance of real estate with arrest or rights of third parties;
• presence of significant debts on utility bills;
• the applicant does not have the right to free privatization of a private house.

Regardless of the reasons for refusal, they must be conveyed to the applicant in writing. If the refusal is received due to incorrectly completed documents, the applicant corrects the inaccuracies and applies again.

The most common reason for refusals is the applicant’s lack of right to privatize a private home.

Disagreements with the Housing Committee arise when interpreting local legislation regarding the right to free privatization for beneficiaries, as well as the availability of current rights to use the house.

It is important to take into account that even in the absence of all the documents for a residential building, it can be privatized by the right of acquisitive prescription, according to Art. 234 of the Civil Code of the Russian Federation, if the actual use of real estate lasts longer than 15 years.

Going to court

If the applicant considers the refusal to privatize to be unlawful, he can challenge the administration’s decision in court. The statement of claim contains the following information:

• Full name, passport details and address of the plaintiff;
• Full name and address of the defendant;
• plaintiff's claims;
• circumstances of the case;
• evidence of attempts at pre-trial settlement;
• information about the property.

If the house has been in use for more than 15 years, then the court recognizes the right to privatize such a house without documents if the plaintiff owns the building on the principles of openness, good faith and continuity.

Conscientious and open ownership involves making utility payments and taking care of the safety of the house, and continuity means appearing on the site with the house at least once a season.

Privatization of a private house is carried out by contacting the housing committee of the local administration. Drawing up an application for privatization taking into account the requirements and norms of local legislation and carefully preparing documentation will help to avoid delays in the procedure for registering rights.

Why can they refuse?

Refusal to privatize in the vast majority of cases is directly related to errors made when drawing up the application or the lack of necessary documents. If everything is in order with these points, then if you refuse, you should ask for a paper with an official indication of the reason. You can now either correct the situation or immediately go to court.

The procedure for privatizing a house with a plot is full of pitfalls and non-obvious features that only a specialist can figure out. During a free consultation, our experienced lawyers will clarify the main controversial issues. They can also handle the procedure on behalf of the client, which will significantly speed up and simplify it.

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Author of the article

Natalya Fomicheva

Website expert lawyer. 10 years of experience. Inheritance matters. Family disputes. Housing and land law.

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The meaning of the status of a property

Federal Law No. 129 clearly states that real estate is property to which it is necessary to register your right.

This property is directly connected to the land, so movement and movement without any damage is impossible.

Real estate objects are usually classified as:

• land;
• various buildings and structures that are directly connected to the land, including residential premises.

Based on Art. 16 of the Housing Code of the Russian Federation, the following are usually classified as residential premises:

• residential buildings or part of them;
• apartments or parts thereof;
• rooms.

In addition, a residential building may also have the following status:

• residential building;
• private house;
• houses with land;
• houses without land.

These nuances must be remembered before starting the privatization procedure.