Is it possible to sell an apartment if it has not been privatized

It's no secret that any real estate transaction involves a lengthy collection of all kinds of documents and visits to many government agencies. Because of this, there is still a category of citizens who have not privatized municipal housing. Sometimes they are faced with the question of whether it is possible to sell a non-privatized apartment. The transaction of transferring real estate to another owner is possible without privatization, but you will have to spend a lot of time.

By law, the sale of real estate after privatization is regulated by the Civil Code of the Russian Federation. Without privatization, its sale is provided for by the norms of the Housing Legislation. The owner of a municipal apartment can arrange a hidden, but completely legal, transaction for the purchase and sale of living space.

The reasons why homeowners are in no hurry to privatize an apartment are not always associated with a reluctance to understand this process. Municipal housing provides some privileges from the state, which are transferred to the buyer if the apartment was not privatized before the sale.

Options for selling municipal housing

Before selling a non-privatized apartment, the owner must find a way. There are two options for how to do this:

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You can send a message to the executive authorities of the city of Moscow as part of a pre-trial appeal.

The procedure for appealing decisions and actions (inaction) of the Department of the Department, the State Budgetary Institution of the MFC of the city of Moscow, officials of the Department, and employees of the MFC

Control over the implementation of administrative regulations for the provision of public services in the city of Moscow is carried out by the Main Control Department of the city of Moscow: + 7 (495) 633-63-99.

Pre-trial (out-of-court) procedure for appealing decisions

and actions (inaction) of the Department, the State Budgetary Institution of the MFC of the city of Moscow, their officials, employees of the MFC

1. The applicant has the right to file a pre-trial (out-of-court) complaint against decisions and (or) actions (inactions) taken (committed) in the provision of public services by the Department, the State Budgetary Institution of the MFC of Moscow, their officials, civil servants of the Department, and employees of the MFC.

2. The filing and consideration of complaints is carried out in the manner established by Chapter 2.1 of the Federal Law of July 27, 2010 No. 210-FZ “On the organization of the provision of state and municipal services”, the Regulations on the specifics of filing and consideration of complaints about violations of the procedure for the provision of public services in the city of Moscow , approved by resolution of the Moscow Government on November 15, 2011. No. 546-PP “On the provision of state and municipal services in the city of Moscow”, Administrative regulations for the provision of services.

3. Applicants may file complaints in the following cases:

3.1. Violations of the deadline for registering a request (application) and other documents necessary for the provision of public services, as well as the procedure for processing and issuing a receipt for receiving a request and other documents (information) from the applicant.

3.2. Requirements from the applicant:

3.2.1. Documents, the submission of which by the applicant for the provision of public services is not provided for by the regulatory legal acts of the Russian Federation and the city of Moscow, including documents obtained using interdepartmental information interaction.

3.2.2. Applications for the provision of services not included in the list of services approved by the Moscow Government that are necessary and mandatory for the provision of public services.

3.2.3. Payment of fees for the provision of public services not provided for by regulatory legal acts of the Russian Federation and the city of Moscow.

3.3. Violations of the deadline for the provision of public services.

3.4. Refusal to the applicant:

3.4.1. In accepting documents, the submission of which is provided for by the regulatory legal acts of the Russian Federation and the city of Moscow for the provision of public services, on grounds not provided for by the regulatory legal acts of the Russian Federation and the city of Moscow.

3.4.2. In the provision of public services on grounds not provided for by the regulatory legal acts of the Russian Federation and the city of Moscow.

3.4.3. In the correction of typographical errors and errors in documents issued as a result of the provision of public services, or in case of violation of the established deadline for such corrections.

3.5. Other violations of the procedure for providing public services established by regulatory legal acts of the Russian Federation and the city of Moscow.

4. Complaints about decisions and (or) actions (inaction) of officials, state civil servants of the Department are considered by the head (authorized deputy head) of the Department.

Complaints about decisions and (or) actions (inaction) of the head of the Department, including decisions made by him or his deputy on complaints received in a pre-trial (extrajudicial) manner, are considered by a higher executive body of the city of Moscow in accordance with clauses 5.6, 6 of the appendix 6 to the resolution of the Moscow Government of November 15, 2011 N 546-PP “On the provision of state and municipal services in the city of Moscow.”

Complaints about decisions and (or) actions (inaction) of MFC employees made when providing government services in accordance with agreements on interaction concluded with the executive authorities of the city of Moscow, local government bodies, and organizations subordinate to them are considered by the director (authorized deputy director) of the State Budgetary Institution MFC city ​​of Moscow.

Complaints against decisions and (or) actions (inaction) of the director (authorized deputy director) of the State Budgetary Institution MFC of the city of Moscow, accepted on complaints received in a pre-trial (extrajudicial) manner, are considered by the Office of the Mayor and the Government of Moscow.

5. Complaints can be filed with the executive authorities of the city of Moscow, organizations subordinate to them authorized to consider complaints in accordance with the Administrative Regulations for the provision of services (hereinafter referred to as the bodies and organizations authorized to consider complaints), in writing on paper, in electronic form form in one of the following ways:

5.1. Upon personal application by the applicant (applicant’s representative).

5.2. Through MFC.

5.3. By post.

5.4. Using the official websites of bodies and organizations authorized to consider complaints on the Internet.

6. The complaint must contain:

6.1. The name of the body (organization) authorized to consider the complaint or the position and (or) last name, first name and patronymic (if any) of the relevant official to whom the complaint is sent.

6.2. The name of the executive authority of the city of Moscow, the MFC or the position and (or) surname, first name, patronymic (if any) of an official of the Department, a state civil servant of the city of Moscow serving in the state civil service of the city of Moscow in the Department, an employee of the MFC, decisions and (or) the actions (inactions) of which are being appealed.

6.3. Last name, first name, patronymic (if available), information about the applicant’s place of residence, as well as contact telephone number(s), email address(es) (if available) and postal address to which the response should be sent to the applicant.

6.4. The date of submission and registration number of the request (application) for the provision of a public service (except for cases of appealing the refusal to accept the request and its registration).

6.5. Information about decisions and (or) actions (inactions) that are the subject of appeal.

6.6. Arguments on the basis of which the applicant does not agree with the appealed decisions and (or) actions (inactions). The applicant may submit documents (if any) confirming the applicant’s arguments, or copies thereof.

6.7. Applicant's requirements.

6.8. List of documents attached to the complaint (if any).

6.9. Date of filing the complaint.

7. The complaint must be signed by the applicant (his representative). If a complaint is filed in person, the applicant (applicant's representative) must provide an identification document.

The authority of the representative to sign the complaint must be confirmed by a power of attorney issued in accordance with the legislation of the Russian Federation.

The powers of a person acting on behalf of an organization without a power of attorney on the basis of the law, other regulatory legal acts and constituent documents are confirmed by documents certifying his official position, as well as the constituent documents of the organization.

The status and powers of legal representatives of an individual are confirmed by documents provided for by federal laws.

8. A received complaint must be registered no later than the working day following the day of receipt.

9. The maximum period for consideration of a complaint is 15 working days from the date of its registration. The period for consideration of the complaint is 5 working days from the date of its registration in cases of appeal by the applicant:

9.1. Refusal to accept documents.

9.2. Refusal to correct typos and errors made in documents issued as a result of the provision of public services.

9.3. Violations of the deadline for correcting typos and errors.

10. Based on the results of consideration of the complaint, a decision is made to satisfy the complaint (in whole or in part) or to refuse to satisfy the complaint.

11. The decision must contain:

11.1. The name of the body or organization that considered the complaint, position, surname, first name, patronymic (if any) of the official who made the decision on the complaint.

11.2. Details of the decision (number, date, place of adoption).

11.3. Last name, first name, patronymic (if available), information about the applicant’s place of residence.

11.4. Last name, first name, patronymic (if any), information about the place of residence of the applicant’s representative who filed the complaint on behalf of the applicant.

11.5. Method of filing and date of registration of the complaint, its registration number.

11.6. Subject of the complaint (information about the decisions, actions, or inactions being appealed).

11.7. The circumstances established during the consideration of the complaint and the evidence confirming them.

11.8. Legal grounds for making a decision on a complaint with reference to the applicable regulatory legal acts of the Russian Federation and the city of Moscow.

11.9. The decision taken on the complaint (conclusion on the satisfaction of the complaint or refusal to satisfy it).

11.10. Measures to eliminate identified violations and deadlines for their implementation (if the complaint is satisfied).

11.11. Procedure for appealing a decision.

11.12. Signature of the authorized official.

12. The decision is made in writing using official forms.

13. The measures to eliminate identified violations specified in the decision include:

13.1. Cancellation of previously made decisions (in whole or in part).

13.2. Ensuring the acceptance and registration of the request, execution and issuance of a receipt to the applicant (in case of evasion or unreasonable refusal to accept documents and their registration).

13.3. Ensuring registration and delivery to the applicant of the result of the provision of a public service (in case of evasion or unreasonable refusal to provide a public service).

13.4. Correction of typos and errors made in documents issued as a result of the provision of public services.

13.5. Refund to the applicant of funds, the collection of which is not provided for by the regulatory legal acts of the Russian Federation and the city of Moscow.

14. The body or organization authorized to consider the complaint refuses to satisfy it in the following cases:

14.1. Recognition of the appealed decisions and (or) actions (inactions) as legal and not violating the rights and freedoms of the applicant.

14.2. Filing a complaint by a person whose powers have not been confirmed in the manner established by regulatory legal acts of the Russian Federation and the city of Moscow.

14.3. The applicant does not have the right to receive public services.

14.4. Availability:

14.4.1. A judicial act on the applicant’s complaint with identical subject matter and grounds that has entered into legal force.

14.4.2. Decisions on a complaint made earlier in a pre-trial (out-of-court) manner in relation to the same applicant and on the same subject of the complaint (except for cases of appealing previously made decisions to a higher authority).

15. The complaint must be left unanswered on its merits in the following cases:

15.1. The presence in the complaint of obscene or offensive language, threats to the life, health and property of officials, as well as members of their families.

15.2. If the text of the complaint (part of it), last name, postal address and email address are not readable.

15.3. If the complaint does not indicate the name of the applicant (the applicant's representative) or the postal address and email address to which the response should be sent.

15.4. If the body or organization authorized to consider the complaint received a request from the applicant (the applicant’s representative) to withdraw the complaint before a decision on the complaint is made.

16. The decision to satisfy the complaint or to refuse to satisfy the complaint is sent to the applicant (the applicant’s representative) no later than the working day following the day of its adoption, to the postal address specified in the complaint. At the request of the applicant, the decision is also sent to the email address specified in the complaint (in the form of an electronic document signed with the electronic signature of an authorized official). In the same manner, the applicant (the applicant’s representative) is sent a decision on the complaint, in which only an email address is indicated for the response, and the postal address is missing or cannot be read.

17. If the complaint is left unanswered on the merits, the applicant (his representative) is sent, no later than the working day following the day of registration of the complaint, a written motivated notification indicating the grounds (except for cases where the postal address and email address are not indicated in the complaint email for a response or they are unreadable). The notice is sent in the manner established for sending a decision on a complaint.

18. A complaint filed in violation of the rules on competence established by clause 5.4 of the Administrative Regulations for the provision of services is sent no later than the working day following the day of its registration to the body authorized to consider the complaint, with simultaneous written notification to the applicant (his representative) about forwarding the complaint (except for cases where the complaint does not indicate the postal address and email address for a response or they are not legible). The notice is sent in the manner established for sending a decision on a complaint.

19. Filing a complaint in a pre-trial (out-of-court) manner does not exclude the right of the applicant (applicant’s representative) to simultaneously or subsequently file a complaint in court.

20. Informing applicants about the judicial and pre-trial (extrajudicial) procedure for appealing decisions and (or) actions (inactions) committed in the provision of public services should be carried out by:

20.1. Placing relevant information on the Portal, information stands or other sources of information in places where public services are provided.

20.2. Consulting applicants, including by telephone, email, and in person.

21. If, during or as a result of consideration of a complaint, signs of an administrative offense or crime are established, the official empowered to consider the complaint immediately forwards the available materials to the prosecutor's office.

If violations of the procedure for the provision of public services of the city of Moscow are identified, the responsibility for which is established by the Code of the City of Moscow on Administrative Offenses, the official empowered to consider the complaint must also send copies of the available materials to the Main Control Department of the city of Moscow within two working days following after the day the decision on the complaint was made (but no later than the working day following the day of expiration of the period established by federal legislation for consideration of complaints about violations of the procedure for the provision of public services).

Limitations and documents

You should not lose sight of some restrictions for a transaction involving the exchange of a non-privatized apartment:

• The owner of a non-privatized apartment must have housing in which he will be registered after the transaction;
• Exchange of living space less than fifteen square meters is prohibited;
• The number of residents deregistered must correspond to the number registered at the new place of residence.

It is important to prepare the following documents in advance for privatization and execution of the transaction. These include:

• Passports of all residents;
• Certificate from the house register about the composition of the family;
• Statements about the absence of utility debts;
• Documents for accrual of benefits;
• Passports and birth certificates of children.

VTB Group launched a mortgage for the purchase of housing through property auctions

VTB was the first Russian bank to begin offering loans for the purchase of real estate through property auctions. The project is being implemented jointly with the digital platform V -Lot (part of the VTB Group). Previously, banks issued mortgages for purchase at auction only for real estate objects on the balance sheet of a credit institution.

As part of the new mortgage offer, clients will be able to get a mortgage for up to 30 years. For a down payment of 10% the rate will be 9.3%, for a contribution of 20% and above - 8%. The maximum possible mortgage loan amount when purchasing at a property auction is 60 million rubles.

“For our clients and for the entire property trading market, this is an unprecedented event. It is no secret that at auctions many objects are offered at prices below market prices, the discount reaches 30%, but previously only those who had the entire amount in hand could purchase them. Now, with a mortgage from VTB, purchasing such apartments at auction becomes much more accessible: this will allow clients to purchase real estate with real benefits and will give a powerful incentive to the development of the property auction market through the massive attraction of new participants,” commented Sergey Pigalev .

Applications for mortgages are accepted at the V-Lot sales department. The digital platform agent will help the client select the property of interest, collect all the necessary documents on it and apply for a loan. Once the mortgage is approved, a V-Lot representative will take care of all the operational work involved in participating in the bidding and completing the transaction. In the future, the main flow of customer requests will be processed automatically on the V-Lot platform.

“Today in Russia, tens of thousands of residential real estate properties are represented on the property auction market. Quite often, clients can find very interesting and profitable lots among them. However, no financing instruments for their purchase have been provided to date. Mikhail Seroshtan, vice president, head of the Mortgage Lending Department at VTB .

VTB began developing a unified digital platform for property trading at the end of July 2021. The bank will launch and test the first version of the project by the end of the year. The platform will combine properties from all electronic trading platforms, will significantly simplify the process of searching and purchasing property for the client and will build a “seamless” path from choosing and applying for a mortgage to taking ownership. The property of state-owned companies, non-core assets of banks, lots of land auctions, etc. will be presented here. Objects will be offered to clients, including at a discount from the market price.

Exchange of a municipal apartment for private housing

If we are talking about exchanging an apartment without privatization for private living space, then both real estate objects retain their status and do not change the form of ownership. That is, only the owners of the housing change. Such an exchange is a hidden sales transaction that can be completed independently or with the help of intermediaries and real estate agencies. Intermediaries usually have a database of similar real estate properties to search for potential buyers.

It happens that a buyer, purchasing such a municipal apartment through an agency, registers ownership of it without inspection. After the exchange is completed, the former owner of the non-privatized apartment receives money.

By law, you cannot use an exchange fund, since there is a risk that one of the parties to the transaction will receive the status of needing improved housing conditions.

What apartments are being sold at auction?

• State and municipal property

These could be new buildings that are being built by city authorities. By law, they are sold only at auctions. The cost of such apartments is equal to or very slightly lower than the market price, but buying such apartments is absolutely safe.

The city also sells secondary housing from Mossotsgarantiya. The city authorities get it from pensioners who move to social housing or enter into a lifelong maintenance agreement.

Discount from market value.

According to experts, such apartments are sold at a slight discount. “Secondary city apartments are usually offered at prices approximately corresponding to the market prices, maybe a little cheaper - by 5-10%,” says the head of the analytical Oleg Repchenko.

Risks

. Legal risks when purchasing such apartments are minimal, but they still exist. “After the purchase, potential heirs may appear who will try to challenge the buyers’ right to the apartment,” warns Arbat MCA lawyer Vadim Bashir-Zade.

• Collateral apartments

These are apartments of people who could not pay their mortgage or secured cash loan.

Discount from market value.

Of all types of housing at auction, these apartments are usually the cheapest. According to experts, the discount can reach up to 50% of the market value. “True, such options rarely appear, and during the bidding the price rises, so the final savings rarely exceed 20–30%,” explains Oleg Repchenko. According to the managing partner of Metrium Group, Maria Litinetskaya, the increase in prices during the auction depends on the attractiveness of the apartment and the number of auction participants.

Risks.

The main legal risk when buying a mortgaged apartment is challenging the auction. “Moreover, the owner can challenge both the bailiff’s decision on the sale, as well as the established price, the bidding procedure and their result,” says Vadim Bashir-Zade. If the owner wins in court, the auction will be declared invalid and the purchased apartment will have to be returned. Another unpleasant situation is the refusal of debtors to leave the apartment. Such tenants will have to be evicted through the courts, the lawyer warns.

What is the risk of exchange?

Before selling a non-privatized apartment through the exchange described above, it is worth assessing the disadvantages of such a transaction in order to understand how profitable it will be:

• Finding a real estate agent to handle such a transaction may not be so easy. This must be a reliable, proven specialist who guarantees risk reduction. All documents must be completed with extreme caution, because the slightest violation will lead to the cancellation of the contract;
• By purchasing a non-privatized apartment, the new owner gets the opportunity to use it, but not full ownership rights;
• Such transactions are possible only for Russian citizens;
• Payment is made only in cash, since the bank will not issue a loan for such a risky transaction.

Positive sides

Despite some risk, we can note not only the disadvantages of such an apartment sale and its re-registration, but also the positive aspects:

• Completing the transaction takes no more than ten days;
• Municipal housing is safe for the buyer and protects his rights. Even if the seller changes his mind, he will not be able to cancel the transaction and return the property;
• Cancellation of the transaction is impossible even through the court if the buyer has fulfilled his part of the obligations and paid the entire cost in full under the contract;
• The paperwork is handled by a government agency, where the possibility of fraud is excluded.