The procedure for the first steps to purchase premises from the city
If the non-residential premises are owned by the city, and you decide to buy it, you need to obtain the appropriate Resolution of the municipal district and be prepared to register the property as your property on a paid basis.
First of all, you should submit a corresponding application on an official basis. The paper must be submitted to the balance holder of the municipal facility. Such forms are submitted to the Housing Policy Department.
List of documents for registering non-residential premises on the city’s balance sheet as your own:
- Citizen's passport
- Completed application to the housing policy department of the district municipality
- Resolution of the relevant municipality
- Cadastral extracts
- Receipts
Documents attached to the application
The package of documents may vary in each specific case, but there is a standard package of information for all applicants:
- a copy of the applicant's passport;
- the tenant's lease agreement for a municipal facility;
- permission from the guardianship and trusteeship authorities, if the issue is about children;
- BTI technical passport;
- permission from neighbors to sell the room.
Sometimes a room has no occupants, is escheatable property, or is otherwise empty of occupants. In this case, those on the social queue are offered to buy it. If there are no people willing to purchase the room, a decision is made to conclude a free contract or sell it and transfer the funds to the municipal fund.
Instructions for purchasing premises from the municipality
The conditions for the purchase of municipal buildings/premises are determined by the norms of 159-FZ of December 21, 1996, Article 3 of the law states in particular:
Tenants acting in the form of individual entrepreneurs, commercial firms and cooperatives, and renting real estate from the city, have a preferential right to purchase it from the municipality.
It turns out that the Federal Law allows representatives of small and medium-sized businesses (hereinafter referred to as SMEs) to take initiative in this matter, although the legislator had not previously provided for such an opportunity. To get the opportunity to become the owner of premises rented from the city, a businessman had to wait for an appropriate proposal from the municipal authorities.
Fulfillment of the following conditions gives the right to preferences when registering city real estate as business property:
- An application for the purchase of a lease right must contain comprehensive data that allows you to clearly identify your business as a SME (the criteria are set out in the Law “On the Development of SMEs in the Russian Federation” 209-FZ, approved on July 24, 2007).
- At the time of submitting the application, the period during which you have already been a tenant of city property must be at least 2 years with continuous calculation or 5 years if the property is included in the list of the Federal Property Management Agency.
- Your business cannot have any rent arrears on the day the municipality is ready to enter into an appropriate purchase and sale agreement with you, regardless of who initiates the transaction - you or the city.
How to take part in the auction
1. Choose an apartment
Municipal apartments
New buildings from the city and secondary municipal housing are collected on the Investment Portal of the City of Moscow. On the website, select the “Tenders” tab. Property" and click on the link "Apartments for sale". You can refine your request by specifying the district, district, metro, price range - to do this, click on the “More filters” menu.
The entire city's secondary market is also available on the Mossotsgarantiya website. You can select the nearest auction or view objects on the map - to do this, click on the desired item in the menu at the top right of the page.
Municipal new buildings are available on the website of the Civil Engineering Department. Click on the objects on the map, refine your request by district, area, area or price, or select the option you are interested in by scrolling through the list of auctions.
You can view city apartments before purchasing. To do this, you need to submit an application to inspect the auction object through the “Personal Account” on the Investment Portal. Through the “Personal Account” you can also view the documents for the apartment.
Mortgage housing
Debtors' property can be found on the website of the Federal Bailiff Service (FSSP). Scroll down to the lot search options. Fill in the following items: “Status - Announced”, “Name and characteristics of the property - Apartment”, “Location of the property - Moscow” and click the “Find” button. Select an apartment and click on the lot number - a page with a description of the lot will open. There is no information on the FSSP website about the trading platform and the time of the auction. For all questions, it is better to contact the auction organizer. To find out his phone number, click on the “more details” link to the right of the auction organizer’s description.
Information about mortgaged apartments is also available on the Official Bidding Website. You need to hover over the “Tenders” tab and select the “Sale of debtors’ property” item. Then, in the “Tendering” column on the left of the page, select the item “In the process of submitting applications”, and in the search for lots, enter the necessary parameters: “Type of property - Apartment or part of an apartment”, “Country of placement - Russia”, “Location - Moscow”.
Inspection of mortgaged apartments before the auction is not provided, so, most likely, you will have to buy a “pig in a poke.”
2. Get an electronic signature
An electronic digital signature is a “key” on a USB flash drive. It gives the electronic document legal force. The signature can be obtained from authorized certification centers. To do this, you need to fill out an application and present your passport, SNILS and TIN. The cost of a signature depends on the center’s tariffs, on average - from 1,000 to 3,500 rubles.
After receiving the electronic digital signature, you must configure it according to the instructions (attached to the signature), and then install a cryptographic information protection system. Access to such a system is usually included in the signature package.
3. Register on the site
Auctions are held on electronic trading platforms specified in the lot documentation. The main platforms for conducting government auctions are Sberbank-AST, the Unified Electronic Trading Platform (EETP) and ets24.ru.
The operating principle of all trading platforms is the same. To register, you will need scans of all pages of your passport and an electronic signature. An application for registration and accreditation at any site is reviewed within 5 days. Please keep this in mind so you are not late for the auction.
4. Make a deposit
Usually this is 2–10% of the starting cost of the apartment, according to the law - no more than 20%. Bank details for transferring money to the account of the operator of the electronic platform can be viewed in the “Personal Account” after registration. You can make a transfer in any convenient way - for example, at a branch of your bank, through online banking or a mobile application. Important: be sure to indicate your TIN when specifying the payment, otherwise the money will not be credited.
To all losers, the deposit is returned within five days after the auction, to the winner - it is included in the payment of the full cost of the apartment. And if the buyer wins the auction, but refuses to buy the apartment, the money will not be returned to him.
5. Submit an application to participate in the auction
To do this, you need to fill out an application and attach a copy of your passport. If you are married, you must also provide a notarized consent of your spouse to complete a real estate transaction.
The auction may be declared invalid if there is only one participant at the auction. But in this case, he is offered to buy an apartment at the starting price, without competition.
Purchase of the right to lease premises in a simplified manner
Law 144-FZ amended the current provisions of the Federal Law “On the Peculiarities of Alienation of State/Municipal Real Estate” (159-FZ, approved on July 22, 2008). For example, he somewhat simplified the method of transferring rights to premises for representatives of SMEs through their purchase.
The main amendments allowed:
- Eliminate the previous requirement regarding the limit of areas allowed for purchase by SMEs (previously, municipal legislation determined the area of real estate that could be purchased).
- Change the rules for calculations for repurchase, allowing for the possibility of payment in installments (previously, installments were not provided, now you can repurchase within 5 years with the payment of interest at a rate of no more than 1/3 of the key rate of the Central Bank of the Russian Federation).
- Allow the right to challenge in court the assessment of the market price of urban real estate for a buyout initiated by the municipality, if, in a reasonable opinion, such an assessment is too high.
- Simplify the regulations for the exchange of documents, providing for the possibility of initiative on the part of the buyer - a representative of an SME; if the initiator is a municipality, your response to his proposal should be received within 1 month.
If an offer to buy city real estate was received by a representative of an SME from the municipality itself, then the potential buyer has 30 days to:
- Sign a purchase and sale agreement for the property offered for purchase.
- Issue a reasoned refusal of the offer.
- Challenge the estimated value of the property in court.
If you file a lawsuit to challenge the city's assessment of a property you are interested in, the 30-day period for completing a purchase agreement for city property is suspended.
Options for buying a room
How does the purchase of rooms in a communal apartment take place?
As noted earlier, buying out a communal apartment is not a simple procedure in legal terms.
This is due to the fact that when implementing it, any person is faced with a huge number of nuances that one way or another can cause problems for a potential buyer.
Expert lawyer's opinion:
Expert opinion
Gumenyuk Ekaterina Vladimirovna
Rosreestr - worked as a state registrar of rights. Head of the property department. I help solve problems that arise with real estate.
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The contract for purchasing a room in a communal apartment does not present any serious difficulties. A room in a communal apartment is a separate object that can be the subject of a transaction, along with apartments. However, design nuances are still present.
When deciding to sell a room that belongs to the owner, a number of actions must be taken. The first thing is to find out who the owner of the remaining rooms in the apartment is.
Rules for the purchase of city property by SMEs under 159-FZ
1. If you are a SME and have been renting premises owned by the city for 2 or more years continuously under a premises rental agreement/agreements, submit an application for redemption on your own initiative within the framework of the pre-emptive right (Article 3 159-FZ).
2. After submitting an application for the exercise of pre-emptive rights to purchase the property you are renting from the city, the municipality must give a reasoned response within 30 days and indicate the redemption price of the premises (please note: on the date of the conclusion of the contract you must be in the register of SMEs).
3. The flow of the one-month period will be suspended until the date when the court makes its decision, and it will enter into legal force if the potential purchaser of the city premises, an SME, decides to challenge the size of the market value of the acquired object.
4. You can challenge in court not only the amount of the assessment of the value of real estate for sale, assigned by the municipal authorities, but also the city’s refusal to sell the premises to a businessman from the register of SMEs who has been renting it continuously for 2 or more years, i.e. refusal to exercise the preemptive right (clause 8, subclause 1 of article 4 159-FZ).
5. You can pay for the redemption of city property as part of the exercise of your preemptive right in a lump sum or in installments (the right to choose is secured by clause 2 of Article 5 of the 159-FZ) at an interest rate of 1/3 of the key rate of the Central Bank of the Russian Federation on the date of publication of the official announcement of the sale.
6. The maximum limit for the installment plan period is finally approved by local legislation, but cannot be less than 5 years, while the buyer exercising his preferential rights must pay in equal payments once a month or quarter (clause 1 of Article 5 159-FZ).
7. Until the buyer of the premises from the municipality pays for it in full, the property will be pledged to the city, and if the DCP has established another condition, it will be declared void on the basis of clause 5 of Art. 5 159-FZ, in this case the buyer has the right to early payment for the purchase in installments.
Any transactions for the purchase of state or municipal property on a compensation basis, executed in violation of the requirements of 159-FZ, are void. If a SME has learned of a violation of its rights to preferential acquisition of the property it leases, it has 2 months to appeal the actions of the municipality.
Risks
When selling an apartment to the state, the seller takes virtually no risk. The transaction is carried out in accordance with the law, which guarantees the receipt of funds.
The risk of losing money can only arise when selling a home through an intermediary. Realtors give the seller a price that differs significantly from the one set by the administration. The difference can amount to more than one hundred thousand rubles.
Sellers who want to use the services of intermediaries need to clearly know the real market value of the apartment so as not to undercut the price.
Transitional provisions of the procedure for privatization of city property
If a subject of the Russian Federation has not approved by law the term of installment payments for the paid transfer of rights to city property, then the period is recognized as equal to 5 years. To realize the benefits, the applicant submits an application to the authorized body, which is obliged to:
- Provide conditions for signing an agreement to assess the market price of the property.
- Establish conditions for paid privatization through buyout.
- Send the draft DCP to the applicant within 10 days from the date of acceptance of the conditions.
It is impossible to exercise the pre-emptive right if the applicant in fact does not meet all the requirements set out in Article 3 of Federal Law 159-FZ.
Why should you contact us for the procedure for purchasing premises from the municipality?
Our company employs specialists who have extensive experience not only in the field of independent assessment, but also in challenging the value of premises when purchased from DGI.
1. The report on the assessment of municipal premises, compiled by our appraisers and checked for accuracy by the head and chief expert, is a serious document that has legal force. Based on this, you can challenge the inflated price proposed by the DGI and buy the premises at a price 40% lower than the original price.
2. Sometimes even a high-quality appraisal report does not guarantee that the tenant will be able to exercise the pre-emption right. We are talking about a situation where an entrepreneur did not have time to draw up a letter of claim on time and overstayed the 30 days given for concluding a purchase and sale agreement. The appraisal staff will not only provide a report, but will also help you quickly and correctly formulate claims and send them to the DGI, and if the Department does not agree with the proposed conditions, file a claim in arbitration court.
3. You can be 100% sure that the assessment results are reliable and objective, since the liability of our appraisers to the Customer is insured.
4. Prompt assessment of premises for purchase from the city. The procedure takes only 2-3 days after the Customer provides all the necessary documents and after inspecting the premises.
Federal Law “On Valuation Activities in the Russian Federation” (No. 135-FZ)
Federal Law “On the specifics of the alienation of real estate in state and municipal ownership” (No. 159-FZ) dated July 22, 2008
Federal Law “On State Cadastral Valuation” (No. 237-FZ) dated 07/03/2016
Federal assessment standard “General concepts of assessment, approaches to assessment and requirements for assessment” (FSO No. 1)
Federal Valuation Standard “Purpose of Valuation and Types of Value” (FSO No. 2)
Federal assessment standard “Requirements for an assessment report” (FSO No. 3)
We understand the benefits and shareware options for obtaining ownership of a city room
Okay, you found an investor, what next?
Just try and find an investor with a bathroom like this!
Census of all neighbors in a communal apartment
After finding a buyer, you need to make a list of neighbors. This list will need to indicate the period of residence of each person in the apartment (for example, someone has been living in a communal apartment since the day the house was built, and someone settled here a year ago), his social status and the possibility of being recognized as needing to improve his living conditions, the size occupied rooms and compliance with its provision standards. If any of the neighbors previously moved from their own apartment to a communal apartment, thereby worsening their living conditions, this is also indicated with the exact date of the official move. If more than five years have passed since that moment, then this will not affect anything. Otherwise, residents will lose benefits if they previously had the right to apply for improved housing conditions.
Why is the length of stay of people on the waiting list in communal apartments important?
The fact is that the court can refuse to buy out a room from the city to those owners who were not owners when the living space in question was actually and legally vacated. For example, a low-income family moved into this apartment six years ago, and the non-privatized room has been empty for six years. And after the death of the last responsible tenant, the city no longer moved anyone here. If those on the waiting list moved into the communal apartment later, they will be denied this housing on preferential terms.
A lawyer will save the situation
If the owners understand that they will not apply for a subsidy on their own, then they should hire a lawyer, because even the fact that a family of five people lives in a ten-meter room does not guarantee the provision of benefits. You will have to negotiate with the administration to speed up the process of reaching a deal. Otherwise, documents may be lost, and then your place in the queue. The lawyer will help you collect all the necessary papers and advise those on the waiting list on what to say when submitting an application, and will also refer you to the most loyal official so that the registration procedure does not drag on for several months or years.
In this case, the investor should help with money. It is he, by the way, who often turns out to be acquainted with officials at the district level and professional lawyers. Many investors do this professionally, but what did you think? The apartments are then sold at market value as a whole or rented out room by room; some actually buy the property for hostels.
Why do you need to have the purchase price of a room certified by a notary?
It is important that the cost of purchasing the room is documented and officially recorded. Otherwise, the price of housing may suddenly rise when the money has already been found. There have been precedents, so it is worth writing down the exact amount and having the document certified by a notary.
You can get the closet for free
If none of those living in a communal apartment can be recognized as low-income and in need of improved living conditions, then they will have to buy the room for its market value. But, if the area of the room is less than sanitary standards (in old apartments there are rooms of four square meters!), then you should try to turn it into a common room. After a positive decision by the administration and the court, its meters will be divided among all owners in the communal apartment.
Why you should contact us
Guarantee. Several cooperation options for your convenience. You pay only for the result! The liability of each of our appraisers is insured under an insurance contract.
Efficiency. By calling our company, you get in direct contact with a specialist. You don’t need to explain your problem several times and listen to ringtones on your phone endlessly. At any stage of interaction with the company - from the first call to specialists to the assessment - the Customer can count on a quick and effective solution to their issues.
Convenience. It is you who choose the day and time of inspection of the property being assessed. You don't need to reschedule any business. We will arrive when it is convenient for you.
Quality. In our company, each conclusion - assessment report - before printing, undergoes a two-stage check for compliance with the standards of expert activity - checked by a leading expert and the head of the organization.
Reputation. Why take my word for it? Look at the reviews from our Clients. Maybe your partner is among them?
Professionalism. We employ certified specialists who are members of a self-regulatory organization and have a license.
Good practice. More than 300 won cases.
