An apartment in exchange for care: how lifelong annuity agreements work

My story is determined by life circumstances - I have an elderly, lonely relative left in my care, this is my aunt, my father’s sister. She was a widow, she had no children, my mother and I were her closest relatives. My aunt was entitled to a free social worker - such workers come twice a week, bring food (we left money for them weekly), take out the trash, check whether everything is fine with their ward’s health - they don’t examine, but look at the appearance, the answers. We had my aunt’s social worker’s mobile phone, we were in touch for many years, and when my aunt had a stroke, it was the social worker who called the doctor the fastest - it happened on the day she arrived.

Once a week I visited my aunt, alone or with my mother. We washed the apartment, refrigerator, bathroom and toilet, brought simple universal food (we cooked it at home and brought huge packages with us - mashed potatoes, steamed cutlets) so that my aunt would have less contact with the gas stove and heat it more in the microwave. We washed my aunt, I cut her nails and hair, we took things to the laundry and changed them into new clothes, I made the bed. This went on for the last ten years - my aunt became ill in health and did not go outside.

Accordingly, monthly expenses for an aunt were equivalent to monthly expenses for a full-fledged family member - food, household chemicals, clothing, utility bills, etc., this could be from 30,000 to 50,000 rubles per month. We kept my aunt’s pension, and I paid for her care all these years from my salary.

About a year before her departure, we began to notice changes in her psyche - memory lapses, she sometimes called us by names that were not ours, abruptly jumped from one topic to another: dementia was developing. We began to think about bringing my aunt to us - under constant care and control.

My aunt lived in an area almost entirely consisting of Khrushchev-era apartment buildings, where elderly residents lived, mostly old men and women. We constantly heard about cases of fraud, when people come to them to lure money for “magical” household or medical devices, we understood that the apartment market is fragile and one fine day a person will come to my aunt who will “discuss” the transfer with her rights to an apartment.

To protect her and her home legally, we chose the option of a lifetime annuity agreement. It involves transferring to you the right to property (here - real estate, a two-room apartment in a five-story building) after the death of the person to whom you provide rent for life.

The aunt agreed, we talked to her and explained how this decision would allow us to record what we were already doing, protect her and give her guarantees for the future.

We immediately involved a notary and a lawyer in our matter, calling them to our home. It is already difficult to say how much it cost at that time, but these were the prices in the market and the range of services included drawing up an agreement, visiting a relative, certifying signatures and support later, issuing all the necessary documents.

The contract spelled out all the points that I had already fulfilled for many years - the amount of 30,000 was indicated - this is the monthly minimum that should have been fulfilled for care (under the contract you collect checks), some contracts stipulate the conditions of burial and taking care of it after the person leaves. In fact, the amount spent on care was more, and this was in the order of things - because we were talking about a family member.

The issue with the subsequent funeral in our case was resolved, because for my aunt there was a place in the cemetery where her mother (my grandmother) was buried.

The aunt passed away shortly after the death of her brother and dad, and the timely conclusion of the agreement made it possible to avoid worries that could have been associated with receiving an inheritance.

I can say that despite the fact that my situation seems to be quite obvious and natural, there is something in it that is important for everyone in the field of life annuity to consider:

1. It's a responsibility

, first of all, for human health, for his mental and emotional state. Special books are not needed, but a healthy and stable psyche is definitely needed. You will be caring for an old man with a rigid psyche and possibly deteriorating health. You must be emotionally mature and have incredible emotional intelligence. You must be above the clouds of reason of the ward, not be offended by his whims and bad character. You must show tremendous empathy, love and patience and maintain them throughout your journey. These are the most important things.

2. You must have time to care for your ward.

This may be a daily concern or a whole day on the weekend - but completely from morning to evening, and this is many months and weeks over many years. This type of work does not have vacations or time off. And it's physically and emotionally difficult. It is difficult to wash the light but clumsy body of an old man or woman and to clean the apartment; you must not be squeamish, friendly and ready for the role of a nurse.

3. You should know that there are many more advantages to this care.

than just future material gain. You improve another person's quality of life, making them healthier and happier.

4. You must be a mature person

to decide to do this when the circumstances are like this. It is important to understand that by doing so you will protect your ward, and not go to the extreme of “what people around will say.” To do this, however, as I wrote earlier, you need to be an emotional adult.

What is a life annuity agreement?

Essentially, an annuity involves exchanging property for assistance for a specified period or indefinitely. In the case of a life annuity, only real estate is used. Help can be either financial or in kind.

A rent agreement for an apartment with lifelong maintenance implies an uncertain completion date, since the payer’s obligations end only with the death of the rent recipient.

Termination of the contract unilaterally is carried out only through the court for good reasons. In this case, the apartment is returned to the former owner, but no one reimburses the rent payer for the costs incurred.

Q: Alexey Viktorovich, does the annuity recipient have the right to any benefits or deductions?

A.K.: There is a special criterion for certain categories of citizens, established tax deductions that they can receive from the amount of property provided under an annuity agreement. It is necessary to look at each category, since a different tax deduction can be established for each category separately; this category includes participants in the Great Patriotic War, participants in major accidents, for example, related to Chernobyl, disabled people of certain categories, etc. For each annuity recipient, and this is, as a rule, a person who has reached retirement age and, as a rule, has certain benefits, it is necessary to determine what deduction he will receive from the property provision that the annuity payer pays monthly

Types of rental agreements for apartments with lifetime maintenance

A life annuity contract is a type of annuity agreement. In turn, there are 2 types of such agreements:

  1. No dependency.
  2. Dependently.

Maintenance without dependency means that the payer's responsibilities are limited to regularly transferring money to the annuitant.

In the case of concluding a rental agreement for an apartment with lifelong maintenance with a dependent, the main condition is the care of the recipient - you will need to systematically visit him, solve his everyday issues and organize something like medical patronage. Funeral services will also be included in the list of responsibilities of the payer of such rent. The contract fixes the cost of products, the list and frequency of services that the dependent will receive. Monthly cash payments may or may not be provided (depending on the will of the parties).

What to watch out for

1. The transaction may be declared invalid.

“The most common case of fraud with an annuity agreement is its conclusion in favor of a citizen who died at the time of its conclusion. Most often, such situations are possible when the rent agreement is concluded through intermediaries,” says Yulia Lyalutskaya. In the future, such an agreement may be declared invalid, but returning the money transferred to the “intermediaries” is problematic.

Here are a few more reasons why a deal may be invalidated:

  • the rent recipient did not have the right to dispose of the property;
  • the identity of the annuity recipient prevents the conclusion of the contract: he is incompetent, does not realize that he is managing property, or is mistaken about the nature of the transaction;
  • the form of the agreement does not meet the requirements of the law.

To reduce these risks, it is necessary to very carefully and thoroughly examine the real estate itself, the contract, and also check the identity of the rent recipient, the lawyer advises.

To do this, you need to obtain an extract from the Unified State Register (Rosreestr), and also check information about all court cases involving the owner using the electronic judicial database, adds Susana Kirakosyan.

2. The heirs can challenge the deal.

Real estate that is transferred under an annuity agreement is removed from the inheritance estate - that is, in any case, the heirs will not be able to receive it. But after the opening of the inheritance, the relatives of the annuity recipient may challenge the agreement.

“The most popular argument in such cases is that the grandfather (or grandmother) could not direct his actions and did not realize that he was managing real estate,” explains Yulia Lyalutskaya. Indeed, it is impossible to completely eliminate such a risk when concluding an annuity contract. Even if you collect the maximum amount of evidence and documents that confirm the real will of the parties and the absence of coercion and delusion, you still cannot prohibit the heirs from filing a claim. And a legal dispute means 6–8 months of litigation only in the court of first instance, the lawyer warns.

3. The annuitant may change his mind and try to terminate the contract.

“Such situations usually arise under pressure from heirs, relatives, or simply concerned neighbors who see a criminal component in everything,” says Yulia Lyalutskaya.

“The parties must act in good faith, but, alas, in practice, many district courts, especially in the center of large cities where real estate is expensive, quite often consider disputes between the recipient and the rent payer with demands for termination on far-fetched grounds. As a result, a conscientious rent payer is left with losses without the expected real estate,” confirms Alexander Ushakov.

If you draw up a contract correctly and fulfill your obligations properly, then terminating it without reason will be problematic. But you still have to prove your good faith to the court. “If the annuity agreement provides for regular cash payments, then evidence of the fulfillment of the annuity payer’s obligations will be receipts for receipt of cash or bank statements confirming regular money transfers,” notes Yulia Lyalutskaya.

Amount of monthly payment under an annuity agreement with lifetime maintenance

The cost of maintenance consists of the sum of cash and in-kind payments. Payment in kind means the provision of services, the transfer of food, medicine and things.

The amount of maintenance of the annuity recipient is determined by the contract in compliance with the minimum allowable amount established by law. The parties can agree on a higher level of support for a dependent and stipulate this in the contract.

Conditions for alienation of real estate Type of annuity contract with lifetime maintenance Minimum allowed content size Article of the Civil Code of the Russian Federation
Free of charge - under a gift agreement No dependents 1 living wage per capita Article 597
With dependents 2 living wages Article 602
For a fee - according to the purchase and sale agreement Any Not installed Articles 597, 602

Thus, if an apartment is alienated under a purchase and sale agreement for any amount, even the most insignificant, then the recipient is deprived of legislative protection regarding the minimum amount of maintenance and subsequent adjustment of payments when the economic situation changes. In this case, you need to separately indicate in the contract the procedure for indexing payments.

Land rent factors

Land rent factors influence the difference between rent and wages, profits and interest. Many economists, including D. Ricardo, K. Marx and A. Smith, worked on the issues of distinguishing the concept of rental payments from wages, business income and profits from securities transactions.

All cash payments presented relate to income, and the main factor that differentiates them is the source:

  • Remuneration is the monetary equivalent of labor power, i.e. the source of wages is human labor;
  • Profit is a type of income (absolute (normal) - i.e. without deducting costs, and net (economic) that a subject receives in the course of business activities;
  • The source of interest is the provision of funds for use by third parties (individuals (for example, a loan issued by a bank) or legal (for example, depositing money in a banking institution);
  • Rent is received as a result of the provision of land plots, natural resources, the quantity of which is limited and is not subject to man-made renewal, or other property for temporary use, i.e. ground rent is income from renting out land.

How to draw up an annuity agreement with lifelong maintenance

During legal proceedings, there are cases when the dependent and the payer have different understandings of the terms of the agreements reached.

For example, an elderly woman gives an apartment to a young neighbor in the hope of his help with housework for the rest of her days, and he moves to another city. At the same time, it turns out in court that there are no special conditions in the gift agreement; no rental agreement was concluded. The woman is left with nothing. Meanwhile, the presence of properly executed agreements would allow us to avoid such a situation.

Correct execution of a rental agreement includes 2 mandatory agreements:

  1. An annuity agreement with lifelong maintenance must be registered by a notary, otherwise the agreement will be invalid.
  2. An agreement for the purchase and sale or gift of real estate comes into force from the date of state registration in Rosreestr. From this date, the apartment becomes the property of the payer, but with a restriction on the right of disposal - an encumbrance in the form of rent obligations.

The property alienation agreement must state that the apartment remains pledged to the rent recipient.

In the annuity agreement with lifetime maintenance, in case of possible litigation, it is advisable to indicate what exactly constitutes a significant violation of the conditions of maintenance.

In addition to mandatory agreements, additional agreements may be concluded depending on the terms of the transaction. For example, a contract of assignment for the performance of the recipient’s duties in government organizations is usually concluded in the case of dependent care.

Tips: how to protect yourself and your money

Peculiarities of transactions under apartment rental agreements with lifetime maintenance

When preparing an agreement, it is important to remember the complexities of annuity relations:

  1. Uncertainty of the duration of emerging obligations.
  2. The likelihood of changes in the life plans and financial situation of the payer.
  3. The possibility of changing the annuity recipient's attitude to the terms of the original agreement.
  4. Possible conflict with interested parties - usually the heirs of a dependent.
  5. The likelihood of fraud by any party to the contract both at the stage of conclusion and at the stage of execution of the agreement.

All this can lead to attempts to challenge the deal in court and serious financial losses, so it is extremely important:

  • collect all possible information about the future recipient and payer of the rent;
  • check the legal purity of real estate ;
  • assess the long-term financial capabilities of the payer;
  • correctly prepare and register documents.

The essence of ground rent

The owner of a land plot has the right to dispose of it at his own discretion, including transfer for temporary use to third parties (both individuals and legal entities, Article 22 of the Land Code of Russia). The relations arising as a result of such a transfer are called rental, and the rent paid by a temporary user is ground rent (Article 583 of the Civil Code of Russia).

Submitted payments must have the following characteristics:

  • Have no connection with the business activities of the land owner;
  • Be of a regular nature or represent a one-time rental payment for a specified period of time.

Important! Land owners will not receive rent at all if they use it for personal purposes, without transferring it to third parties for use.

Ground rent profit

Article 583 of the Civil Code of Russia indicates that the parties to rental legal relations have the right to independently determine the form of expression of the corresponding payments, the form of profit (monetary or otherwise - part 1 of Article 583 of the Civil Code of the Russian Federation). In accordance with the above, the following forms of profit from rent are distinguished:

Natural , i.e. expressed by goods (products). It is used primarily when using leased land for agricultural purposes (for example, when growing wheat on such land, the rent payment is part of the harvest);

Labor , in which a temporary user, as payment, undertakes to perform (perform over a certain period of time) specified work (provide a service) in favor of the land owner;

Monetary , in the conditions of application of which the rental payment is represented by a monetary amount agreed upon between the parties.

Required documents

Documents that the owner and renter need to collect:

  • passports;
  • application to the technical bureau. inventory;
  • proof of ownership;
  • a document that certifies ownership of the apartment;
  • if the owner is married - consent of the husband/wife;
  • real estate explication plan from the BTI;
  • a certificate from the tax office confirming the absence of debt;
  • a certificate from the housing office confirming that there is no debt for paying for utilities.

Ground rent price

According to the method presented above, the price of land (as present value) is determined by the following formula:

Land Price = Net Income / Capitalization Rate

Net income will be represented by the amount of rental payments received by the owner over a certain period (for example, annually). Capitalization rate is the market interest rate.

Ground rent capitalization method - calculation example

The owner receives annual rent payments in the amount of 10,000 Russian rubles. The capitalization rate is 23%. Let's calculate the cost of the plot (land price) using the capitalization method:

10,000/23%= 10,000/0, 23 = 43,478 rubles.


Price of ground rent. Rice. 2: 900igr.net

Land market and rent

Relations in the land market are represented by the conclusion of purchase and sale transactions between landowners and individuals (legal entities). A mandatory condition of contracts of this category is the price, the calculation of which establishes a close relationship between the rent and the cost of the site.

The formulas used to determine the price of sale or lease of land include indicators of the nominal value (market price) and the total expression of rental payments. Thus, land rent in Russia directly affects the calculation of the market price of land and, on the contrary, the market price directly affects the cost of temporary use of land.

Interesting! The land market and land rent are factors that form the price of land. An increase in land rent provokes an increase in the cost of the site and vice versa.

Capitalization of ground rent

The land rent capitalization method is one of the methods for calculating the value of a plot leased separately from buildings and structures, which takes into account the potential profit of the buyer from the use of the land based on the income received by the current owner and the capitalization ratio (Order of the Ministry of Property No. 568-r dated March 6, 2002).

In other words, capitalization of land rent is the determination of the total value of future rental payments, equal in value and determined at the time of the assessment.

Basic principles of land use

In accordance with the provisions of Article 1 of the Land Code of Russia, the use of land must be based exclusively on the following principles:

  • Payment for use;
  • Security at the state level;
  • Availability of intended purpose;
  • Recognition as a key element of life;
  • The right of individuals and legal entities to participate in resolving land issues, etc.

Interesting fact! The legislator places the protection of life and health of citizens in first place among the conditions of land use.

Terms of a transaction

A life annuity agreement regulates the procedure for providing maintenance to a needy person on account of his property of any type. Payments are made according to the frequency determined by the agreement (most often monthly). The term “lifetime annuity” implies the end of the contractual relationship only in connection with the death of the recipient or on the basis of a mutual decision of the participants.

In civil law, the procedure for accepting rental payments is enshrined in Articles 596-600 of the Civil Code of the Russian Federation. If the legal concept is not defined within the framework of these norms, the provisions of Articles 583-595 of the Civil Code of the Russian Federation, which describe related situations, apply.

It is important to understand that the article describes the most basic situations and does not take into account a number of technical issues. To solve your particular problem, get legal advice on housing issues by calling the hotlines:

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The parties have clear and differentiated functions, implemented through the transfer of property and funds. Unlike other forms of annuity, lifelong maintenance is carried out only in favor of an individual. Organizations can also act as payers, if this does not contradict their charter and the scope of activity specified in the certificate.

The subject, that is, a list of objective facts and things that are regulated by the agreement, includes monthly payments and property of the recipient. In addition to real estate, vehicles, securities and other valuables that cover the contract price are used to ensure maintenance. Since in civil proceedings it is accepted that agreements are reasonable, the cost of housing (the value is fixed in the document itself) is recognized as equal to the total number of payments made.

Attention. If you have any questions, you can consult a lawyer for free by phone: 7 (499) 553-09-05 in Moscow, St. Petersburg, all over Russia. Calls are accepted 24 hours a day. Call and solve your problem. It's fast and convenient.

In order of maintenance, every month in cash or to a bank account (passbook). Payments are made on an advance basis, which allows the current owner to terminate them at the time of the death of the previous owner;

In the form of a one-time payment transferred at the time of conclusion of the contract. The amount of payment is the price of the apartment, which indicates compensation for the execution of the contract. Property means the following material assets:

  • Real estate, both commercial and residential. Premises undergo mandatory registration, including the contracts themselves, which modifies the procedure;
  • Automotive equipment, including special purpose;
  • Appliances;
  • Securities;
  • Financial assets and enterprises.

Most often, the subject for transfer is residential real estate (apartments, houses in the private sector), which is associated with the target group of rental relationships - single pensioners. The main requirement for property is that it must be the object of civil rights and belong as property to the recipient.

Civil legislation establishes a list of conditions under which an agreement is concluded:

  1. The document must imply compensation, in particular, proportionate benefits for both parties. The price is determined based on the opinion of the participants, which is based on market indicators of this type of property;
  2. The minimum amount of maintenance cannot be lower than two subsistence levels determined for a given region.
  3. Property accepted as security for a contract is subject to an encumbrance that deprives the owner of administrative rights, except with the consent of the recipient;
  4. The parties undertake to maintain a trusting relationship for the duration of the contract, which is expressed in the absence of pressure, causing harm to each other and property;
  5. The agreement, according to 584 of the Civil Code of the Russian Federation, must undergo a notarization procedure. Otherwise, it is considered void;
  6. The document must provide for methods of retaining property aimed at ensuring legal requirements. The agreement uses penalties and penalties aimed at compensating for damage if it was caused by the actions of a participant in the transaction.

The need for certification, and in some cases, registration, entails the obligation of the parties to the transaction to use a written form of the agreement. Obligations arise when the document is signed or according to suspensive conditions (for example, the contract specifies a different date for the transfer of the first rent payments).

The document must contain the following provisions:

  • Determination of the parties. The recipient of funds always indicates detailed passport information, and the payer - a legal entity or individual - information corresponding to the legal status. When concluding agreements with multiple parties, the type of participation and similar personal data are indicated;
  • The subject of the agreement, including the amount of rental payments and the property transferred into ownership. The item is described in sufficient detail (license plates, cadastral information, technical characteristics) to clearly identify it during registration and use;
  • A list of documents that establishes the legality of ownership and the recipient of the rent. The type of rights and circumstances of receipt are indicated;
  • The rights of the parties to enforce the agreement;
  • Responsibilities, the implementation of which also contributes to the absence of violations when making payments or transferring property;
  • The final price of the contract;
  • Responsibility of each party in case of failure to fulfill its obligations;
  • Availability of the right of assignment and inheritance of rent.

In the resulting part (possibly on each page), the signatures of the parties to the agreement are affixed. If the rent is paid to a bank account, then its details are indicated. Based on the norms of Chapter 33 of the Civil Code of the Russian Federation, rent can be provided in kind, through the provision of services, which is also recorded in the document.

The execution of an agreement is permissible only with the consent of persons who also own shares in the property. Drawing up an annuity agreement on behalf of a married citizen imposes on the subject of the agreement the status of joint property (subject to division in the event of a divorce).

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The registration procedure does not change and consists of the following steps:

  1. The parties assess the value of the property that is to be transferred into the ownership of the payer. Property valuation can be done “by eye” or with the assistance of specialists;
  2. The participants enter into an agreement in which they record everything that is an essential condition for them. Despite the length of the document, its implementation is carried out in accordance with the legislation at the time of conclusion (this rule applies to cars and real estate);
  3. The agreement is formalized in a notary office. It is acceptable to involve a medical expert to confirm the legal capacity of the parties;
  4. The payer makes a redemption payment (if this is stipulated in the contract), and also makes periodic payments;
  5. Based on the agreement, property is registered. The registration period does not exceed 30 days;
  6. Other property is transferred under a transfer deed. Payments must also be recorded, since the law allows only documentary evidence to be used when filing a claim and in legal disputes.

The execution of the contract terminates at the moment when the death certificate of the annuitant is received. The civil registry office is obliged to issue this document to the payer if a lifelong rent agreement for an apartment has been provided. The certificate is the basis for removing the encumbrance from the subject of the transaction and makes it possible to sell (mortgage, lease) it as full property.

List of documents

The party to the contract who transfers the property (apartment, private house, land, etc.) is obliged to provide evidence of ownership of it. The person to whom the property is transferred undertakes to support the former owner until the end of his life. It happens that not one person, but several specified in the contract may be dependent.

The annuity payer can also be not a person, but a government agency, an insurance company, a religious society, etc. Under the terms of the agreement, this party assumes financial responsibility for the maintenance of the property and the recipient of the rent, including its treatment, food, clothing and care.

The last paragraph must be spelled out separately and in as much detail as possible, since then it will be impossible to require the parties to fulfill obligations that are not specified in the text of the document. Financial expenses for the funeral after the death of a dependent are also borne by the owner, unless otherwise provided by the contract.

Regardless of what is the subject of the rental, the property must not be in dispute or be leased.

Attention

At the same time, until his death, the citizen uses his property in the same way as before. But lifelong maintenance is a completely different conversation.

With it, you will not just have to pay a certain amount, but completely take care of the owner of the property. You can say you will become a nurse for a pensioner. It's a risky business, but they often agree to it.

Important

Conditions Of course, if you decide to take this step, then you should observe some restrictions and follow the rules. The execution of any document has its own algorithms that are recognized as legal.

The conditions for lifelong rent of an apartment are not too strict. Most often they do not occur at all. More precisely, no one thinks about them.

After all, after realizing what the rent of an apartment with lifelong residence is, the bewilderment of relatives can be understood. Description What are we dealing with today? As practice shows, in the modern world, rent has become more and more common.

Rent payment, standard value of land and land tax

The Land Code of the Russian Federation establishes the basic principles of land use, the first place among which is occupied by the principle of payment. There are three types of payments associated with the use of land:

  • Rent;
  • Land tax;
  • The price of the plot, which depends on its qualities and location.

Standard land value is a value that characterizes the price of a plot with its specific qualities and a certain location, when calculating which the potential profit for the payback period is taken into account.

The payment of tax for land is due to its special status - recognition as a national value, in connection with which the main owner is the state, as the personification of the entire people.

Important! Ground rent and rent act as a special and general concept, respectively.

Rent is applied in the field of civil law relations between the owner of the site and its temporary user (tenant), and its payment is based on the provisions of the lease agreement concluded by the represented parties.

Conclusion

Due to the special status of land as a national treasure, all actions of which it is the object (including land rent) should be carried out in strict accordance with the provisions of current laws and by-laws, including:

  • Land Code of the Russian Federation;
  • Civil Code of Russia;
  • Federal Law No. 172 of December 21, 2004 (on the transfer of land from one category to another);
  • Order of the Ministry of Property No. 568-r dated March 6, 2002 (on methodological recommendations for determining the market value of land plots).
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