Risks when buying an apartment owned for less than 3 years

Owners of apartments and other real estate purchased less than three years ago are faced with the obligation to pay tax on the profit received upon sale.

Moreover, in accordance with the new rules in the Tax Code of the Russian Federation, if an apartment purchased after January 1, 2016 is being sold, tax must be paid on the sale of real estate that has been owned for less than five years.

This does not affect property that was received by gift, inheritance, or rent. For these categories, the old conditions apply, including a three-year ownership limit.

Fraud options

Most often, the risks of purchasing an apartment and other real estate that has been owned for less than 3 years are associated with fraud. Practice knows many such cases, which allows us to highlight some of the most common schemes:

• Carrying out a transaction using forged documents. Not only false documents, seals, and dummies are used, but also a rented apartment, which often belongs to a person who is not at all aware of the fraud. At the same time, it is almost impossible to find scammers, and it is very difficult to achieve justice and return money.
• Filing a claim in court to declare the transaction invalid. The claim is filed by the seller in order to regain the property and make money on it. Despite the fact that after cancellation of the contract the buyer gets his money back, this is not the amount that was paid, but less. The fraudster pockets the difference. In addition, do not forget about legal costs.
• Selling an apartment to several persons at once. This is done by reproducing notarized copies of documents on which simultaneous transactions are executed. Of course, the seller prepares them in different notary offices. It is extremely difficult to bring such a fraudster to justice, since he usually immediately disappears in an unknown direction.

The most important aspects of reinsurance

To reduce existing risks for the buyer of an apartment that has been owned by the seller for less than three or five years according to the new rules, even if at first glance everything looks transparent, it is important to check:

• Seller. It is better not to enter into an agreement using a power of attorney, since its validity date may expire before the agreement is registered. It is also not advisable to contact visiting sellers. In addition, it is necessary to clarify and, if possible, verify the reason for the sale.
• An apartment or other real estate to be purchased, including in a new building. It is necessary to request an extended extract from the house register in order to view the entire list of residents previously living in this area, and to clarify whether there are any among them who can return according to the law. It is important to immediately specify and document the payment method.
• The procedure for carrying out the transaction. Urgency or a significantly reduced price for an apartment (more than fifteen percent) is a reason to be wary. The absence of any document in the package is also a reason not to sign the sales contract.

If this is the first transaction of this kind for the buyer, then it is better to seek help from a specialist who will check the legal cleanliness of the apartment and tell you exactly when to sound the alarm and what reasons there are.

Thorough check

Buying real estate is accompanied by a number of nuances that need to be foreseen in advance. When purchasing on your own, you need to inquire about the history of the apartment.

Asking questions is, of course, good, but each answer must be supported by the appropriate document.

That is why you need to ask the seller to show not only a certificate from the house register, but also an extended extract from the unified state register of ownership of real estate.

It is important to pay attention to whether minors are registered in the apartment and whether they are co-owners. If any, there must be official permission from the board of trustees for the transaction and other related papers. However, it is better not to mess with such objects at all.

You will also need to check the compliance of the apartment with its layout according to the documents. If there have been changes, they must be legalized. If tax was paid, there must be receipts.

What risks might you face?

The reasons why risks arise for the buyer of an apartment and other real estate that has been owned for less than three or five years are justified by the fact that:

• If the apartment was received by the seller under a deed of gift, the donor has the right to return it through the court before the expiration of three years of ownership;
• The real estate may be encumbered by the registration of minors or incapacitated persons in it, due to which the purchase and sale agreement may be cancelled;
• There is no possibility to apply for a deduction for the tax paid.

Of course, buying such an apartment will not necessarily be burdened with all these troubles. Undoubtedly, there are conscientious sellers who have valid and well-founded reasons for selling a property without causing any problems.

However, if you buy real estate in a new building, you shouldn’t let your guard down. Fraudsters operate here too. In addition, the possibility of an unpaid loan cannot be ruled out.

Sale by proxy

In order to reduce existing risks, you need to seek help from a notary at the initial stage of completing the transaction. A qualified specialist knows what to pay attention to and where there may be pitfalls that an ordinary citizen may miss through inattention or ignorance. The costs of a notary are considerable, however, this way you can be sure that the transaction is safe. In the case of self-registration, having fallen for a fraudster, the buyer will lose much more than the cost of the specialist’s services.

Transactions are no less dangerous if the apartment, which has been owned by the seller for less than three years, was inherited by him.

This is due to the fact that during this period other heirs who, for some reason, have not entered into their rights, can go to court and restore them. If their claim is satisfied, all real estate transactions will be canceled.

The money spent on the purchase will be returned, but the funds that went to paperwork, repairs and other expenses will not.

Attention to the drawn up contract

When concluding an agreement to purchase an apartment that has been owned by the seller for less than three years, you should read the entire document very carefully, from the first to the last character. It is not necessary to have the agreement certified by a notary office, but it will be more reliable for both parties if the transaction is clean.

Mandatory clauses of the purchase and sale agreement:

• Indication of the place and date of its compilation;
• Personal passport details of each participant in the transaction, including registration addresses that match the originals;
• Description of the characteristics of the apartment being purchased, the form of ownership, as well as an indication of the documents on the basis of which ownership rights were obtained from the seller;
• There is no guarantee that the apartment is not encumbered and there are no persons who have the legal right to live in it;
• The final cost of the property in full;
• Deadline for complete vacancy of the apartment by current residents.

It is advisable to include in the document a clause stating that the seller undertakes to assume full responsibility to third parties in the event that they assert claims to the sold property.

Challenging the transaction

If the buyer needs to challenge and cancel the transaction concluded with the seller after purchasing an apartment that has been owned by the seller for less than three years, this can only be done through the court.

Such cases usually arise when faced with scammers, when you need to get your money back.

The basis for going to court is also a violation of the terms of the transaction on the part of the seller, a contradiction of the conditions with the regulatory legal acts of Russian legislation, and infringement of the rights of third parties.

The apartment has been owned for less than 3 years, how to sell? Buying an apartment: risks:

Buying an apartment is an important moment in the life of every person. This investment is not only large, but also subject to certain risks.

“The apartment has been owned for less than 3 years” - such headlines in advertisements are very common today. Most people don't understand why the seller includes such details in the ad.

How to avoid mistakes and buy an apartment without risk? To do this, you need to familiarize yourself in detail with all the formalities and conditions of purchase and sale.

Safety rules when buying real estate

The risks of purchasing an apartment today are very high. How to avoid being deceived by a realtor and seller? How to protect yourself when buying and selling a residential property? In order not to be deceived, a potential buyer must pay attention to such details as the history of the residential property, documents for the apartment, applicants for living space, and compliance of the housing with the documents.

Before completing the purchase documents, it is necessary to study the history of the property in detail. You should know the answers to a number of questions:

• who is the owner of the apartment now;
• who was the previous owner;
• who is registered in this apartment;
• How many unregistered residents live?

As for papers, before registration it is necessary to carefully study the documents for residential premises. Very often, scammers use fake documents.

In addition, the buyer must be sure that he is purchasing an apartment legally, and the housing must comply with the documents. Here, for example, are a few clarifying questions that should be asked to the owner if there was a reconstruction of the apartment: “Was the redevelopment of the apartment legal?”, “Did management services agree to the transfer of communications?”

Necessary documents for an apartment

Buying an apartment is a serious transaction, so it is important to be aware of the required package of documents when drawing up a contract.

Most buyers think that all aspects of buying and selling can be left to a real estate agent. It must be remembered that he does not bear financial and legal responsibility for signing the deal.

The real estate agent only provides information services.

Apartments can usually be primary or secondary. When purchasing in a new building, the client can purchase housing in an already completed house or participate in shared construction. The procedures for purchasing housing in a new house that has already been commissioned and the procedures for purchasing housing on the secondary market are the same.

If the client participates in shared construction, then first a shared participation agreement (DPA) is concluded with him, and after the construction of the building, the buyer formalizes the right to property. In order to register a DDU, the client is required to:

• application (the application form can be obtained on site);
• remote control agreement;
• receipt for payment of state duty in the amount of 100 rubles plus a copy of the receipt.

Pitfalls when buying real estate

During a sale, the seller's main goal is to make as much money as possible from the transaction. In order not to purchase housing that will not match the price, you should beware of common mistakes. Common mistakes during purchasing:

1. Buying an apartment in a hurry. You should not rush in this matter, and before completing the documents you need to look at at least ten options.
2. Purchasing housing in the summer. In order to identify room errors, you need to consider options in the fall or winter. Then you can understand how well the room is heated, whether the roof is leaking, and check the walls for mold.
3. Windows and views from them. You need to pay attention to whether there is a construction site or a noisy highway under the windows.
4. Redevelopment of the premises. To avoid problems with the law, the apartment plan must comply with the BTI passport.
5. Electrical supply to the premises. According to the laws of the Russian Federation, in order to move sockets, the owner must have a project for power supply to a residential property.
6. Inspection of housing in the evening. Experts advise inspecting the home during the day to see all the errors in the room.
7. Refusal of legal assistance. When purchasing real estate, you must use the services of a lawyer. This will help avoid problems in the future.

Possible methods of fraud during the purchase and sale of residential premises

How to protect yourself and not fall for a scammer? Today, apartment scammers work according to the following schemes:

1. Multiple home sales. During such a transaction, scammers provide false documents and demand full payment after registration with a notary.
2. Selling someone else's apartment. Swindlers prepare a false package of documents for a rented apartment and try to sell it.
3. Advance payment. The swindler demands an advance from the buyer, after which the swindler quickly disappears.

In order not to fall for deception, you must follow some recommendations:

1. The purchase and sale agreement should be concluded in the presence of a lawyer.
2. It is necessary to ask for all copies of signed documents of the apartment owner.
3. Before signing a contract, you should find out as much information as possible about the owner.
4. The buyer has every right to make changes during the conclusion of the contract. If the seller prohibits the introduction of changes, then such an agreement should be abandoned.
5. Two persons must be present during the conclusion of the transaction. They will be able to be witnesses in court if any problems arise.

Purchasing a home that has been owned for less than 3 years

The sale of an apartment owned for less than 3 years is subject to the conditions and procedures that are prescribed in Article 220 of the Tax Code of the Russian Federation.

If the cost of housing is more than one million rubles, then the law obliges the seller to pay tax on income from the sale of housing premises.

If the apartment for sale has been owned for less than 3 years, the tax is thirteen percent of the total cost of the property.

Many sellers may try to circumvent the law and not pay the due tax. They offer the buyer to sign an agreement for an amount less than one million rubles and pay the missing part unofficially. You should not agree to such deals, as you can get yourself into big trouble.

For example, the seller can terminate the purchase and sale agreement, and during the court hearing the apartment will be returned to the seller, and the money specified in the agreement will be returned to the buyer. If the sale of an apartment was carried out after less than 3 years of ownership, tax must be paid by law.

Otherwise, it will entail legal punishment.

Typical risks

Buying an apartment less than 3 years old can lead to great risks. There are several reasons for concern:

1. A donated apartment less than 3 years old can be returned to the owner if no more than three years have passed since the donation.
2. The contract may be canceled if minors or incapacitated persons are registered in the apartment.
3. It is impossible to obtain a tax deduction from a residential property if the apartment has been owned for less than 3 years.

Such risks are possible, but not in all cases. Today, an apartment owned for less than 3 years, as a rule, does not bring with it any problems or worries for the buyer. Although, of course, there are always exceptions. You can fall for scammers, housing with debts or in collateral.

Risks when purchasing housing by proxy

Purchasing an apartment by proxy has its own risks. Three main threats:

1. Purchasing an apartment using a fake power of attorney.
2. Alienation of property due to an expired or revoked power of attorney.
3. Death of the owner on whose behalf the trustee is acting. In this case, it is better to meet with the owner and agree that the buyer will handle the registration himself without an intermediary.

If there are several property owners, then it is necessary to obtain a written refusal from each owner.

What should a true power of attorney consist of?

In order to verify the authenticity of the power of attorney, it should be checked for validity. The genuine document must indicate:

• passport details of the principal (full name, date of birth, place of registration, series and number of passport);
• information about the authorized person;
• address of the alienated property;
• the signature of the person who issued this power of attorney;
• certification inscription and notary seal.

Risks when purchasing a home acquired by inheritance

The seller may be a person who inherited an apartment from another person. You need to know the nuances of such an inheritance:

• inheritance can be transferred along with debts;
• the inheritance can pass to the heir if it is pledged; in such a situation, he does not have the right to dispose of the inheritance;

A few problems that may arise:

• filing a lawsuit in order to break the inheritance deal;
• encumbrance of an apartment, for example, if a long-term lease was signed, then such an agreement remains legal even if the owner changes.

Checking the cleanliness of the apartment from the legal side

In order to protect yourself and not fall into the scam of a fraudster, you need to check the apartment for legal purity. The new owner needs:

• find out about the timing of the right to inheritance;
• contact the notary who formalized the inheritance to prevent the appearance of other successors.

Challenging the transaction

There are cases when the buyer initiates the termination of the purchase and sale agreement. In accordance with the law (Article 450 of the Civil Code of Russia), a transaction can be canceled on legal grounds:

• if the seller seriously violated the signed contract;
• in the event that the terms of the transaction contradict regulatory legal acts;
• in case of infringement of the rights of a third party (heir);

This issue can be resolved in two ways: by mutual agreement of the parties or in court, if one of the parties does not want to terminate the contract.

Exchange of an apartment owned for less than 3 years

The exchange of housing premises has become relevant today. Many people have questions:

• Is an apartment owned for less than 3 years subject to exchange?
• Are owners required to pay tax at the time of exchange?

If the housing has been owned for less than 3 years, then the owner is exempt from paying taxes during the exchange of housing, claiming a tax deduction. This deduction is exactly equal to thirteen percent of the total cost of housing.

But if the period of ownership exceeds by at least one month, then the owner is obliged to pay a tax to the state in order for the transaction to be considered valid and registered.

All laws of the Russian Federation on the exchange of apartments are prescribed in the Civil Code (Article 567), and Article 217 of the Tax Code specifies the amount of tax to be paid.

Buying an apartment less than 3 years old, what risks does the buyer have?

When purchasing real estate in a new building on the primary market, the new owner risks that the construction of the residential complex will not be completed at all, but there are risks in purchasing an apartment that has been owned for less than 3 years. Here, too, the buyer needs to be prepared for tricks. Many will be surprised why such a clarification is needed, and what is special about an apartment that has been owned for less than 3 years. And in vain, find out why further.

Safe purchase of an apartment

It is quite difficult to figure out this issue on your own, because fraudulent schemes are constantly being improved. Only a professional lawyer who knows all the intricacies can determine the purity of a transaction. If you rely on your own strength, you can end up without money and without an apartment.

Important! The main desire of sellers who have owned an apartment for less than three years is to reduce the amount in the contract; they may offer to pay the difference, bypassing official documents. But you shouldn’t do this, since the official amount will be a tax refund.

They will try to entice owners of apartments that were purchased after January 1, 2017 to engage in similar manipulations, only now the period has been increased - 5 years. But these are the most harmless tricks.

Serious Fraud Options

In fact, there are many scams involving the purchase of such housing, but there are a number of the most popular ones, among them:

1. Carrying out a transaction using forged documents. In this case, everything fake is used: seals, dummies, an apartment, which is most often rented and belongs to completely different people. It is impossible to find the end of this story, let alone the culprits, as well as to return the money. In this case, secrecy, haste, and the low price of real estate should be wary.
2. Courts after the sale. Quite a few enterprising owners of square meters decide to take this risky step. They sell the apartment, and after a short time they file a lawsuit to declare the transaction invalid. It would seem that everything is legal, the buyer gets their money back and everyone stays the same. But not everything is so simple, the former owner will return the money, but not the amount that was paid, because in the statement of claim the fraudster deliberately indicates an underestimated amount. He takes the difference for himself. You will also have to incur court costs.
3. Selling an apartment to several people at once. To do this, copies of all documents are notarized and transactions are completed at the same time. Of course, registration takes place in different notary offices. It is impossible to find the culprit if one or more “legal owners” knock on the door. Therefore, we must not forget that when completing a transaction, the seller must provide only the originals of all documents.

How else can you be safe?

There are quite a few people who want to deceive, but if the buyer is attentive and understands all the features, it will be difficult to deceive him. Even if everything looks legal and correct, you need to pay attention to:

• Apartments that are sold by proxy should be on your guard. The danger here is that the power of attorney may expire before the property rights are re-registered. Another danger is the possibility of canceling the power of attorney by those who wrote it out without informing the authorized person about it. As a result, the transaction is declared invalid by the court.
• You need to request an extract from the house register; it will indicate everyone who applies for this living space and has the right to live on it. If minors are indicated, it is better to refuse to purchase such real estate.
• You should not agree to buy an apartment that is too cheap compared to the market value. Excessive haste and nervousness should also alert you.
• If the apartment was received through a gift agreement, the donor has the right to request the return of the property within 3 years.
• Purchasing an apartment that was inherited. This also has its own subtleties, because the process of registering an inheritance could have violated the rights of other heirs, for example, they were not informed about the existence of such real estate. In this case, the transaction can be challenged in court, and in most cases, the new owner loses such cases.

If there was fraud, then the only option to get your money back is to go to court. But this is only possible if the scammers have not disappeared without a trace, which is extremely rare. It is in court that both the buyer and the seller can challenge the transaction.

Thorough check

The first thing you need to pay attention to is the apartment itself; you should find out its history, how many times it was resold, and why. Moreover, all answers from the current owner must be documented. An extended extract and a unified register will help with this, and the date of its issue should be no later than 1 week before presentation. It will contain information:

• Who is the current owner of the property?
• Who previously owned the apartment.
• Mechanism for changing ownership.

To be completely sure of the accuracy of the data, you can take such a certificate yourself; of course, you will have to pay a fee for this, but its size is not so large as to neglect the security of the transaction.

It is important to ensure that minors are not co-owners of the apartment; registration of their desired housing is also not encouraged. If there is such a fact, then there must be permission from the guardianship authorities for the sale. But in general it’s better not to mess with such apartments.

You also need to compare the documents provided by the owner with the floor plan of the apartment. Any changes must be reflected. There must be receipts for tax payments.

Attention to the contract

It is the key document of the entire transaction, if all the points mentioned above have been checked and they are in order, then the last point that should be under control is the contract documenting the transaction.

The most important thing is to read and thoroughly study the document; all its points must be understandable and suitable for the buyer. Such a contract must be certified if the buyer seeks to reinsure himself. According to the law, there is no such requirement, but it is more reliable and will be another confirmation that the transaction is clean.

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Mandatory clauses of the contract:

1. The place and date of preparation of the document is indicated.
2. Passport details and other details of the parties, including identification numbers and registration addresses. All data must match that indicated in the original; it is better to check this personally.
3. Characteristics of the apartment by which it can be clearly identified. In addition to describing the features, this is also the cadastral number, area, communications.
4. A note that there are no encumbrances on the apartment; this must be documented.
5. Full cost of housing.
6. Deadlines for vacating living space by former owners.

It would not be amiss to include a clause according to which the seller undertakes to assume responsibility to third parties if they have claims regarding the sold property.

Challenging in court

You can challenge any transaction in court, including one in which an apartment that has been owned for less than 3 years was sold. The grounds for this are violation by either party of the obligations stipulated in the contract.

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Conclusion

There are always risks when purchasing, but it is no coincidence that they say, forewarned is forearmed. This is exactly the case when forethought is the key to a long and happy life in your own apartment.

Buying an apartment less than 3 years old, what risks does the buyer have? Link to main publication

Owned apartment for less than 3 years: risks when purchasing

Often, if a person himself carries out a real estate transaction and selects an apartment, he may encounter a situation where the owner has owned the apartment for less than three years. This fact is always paid attention to, but not everyone understands what exactly this means and what risks it can lead to.

The real estate market is a large developing and almost independent organism. Prices for apartments are set based on various external factors that are not always obvious to the average person, and the legislative framework is constantly changing. Such factors make buying real estate a difficult task and open the way for possible fraudulent transactions and fraud with apartments.

Of course, in order to avoid getting into an unpleasant situation with the purchase of an apartment, which, among other things, will also be associated with large financial risks and costs, it is better to carry out all transactions for the purchase of real estate in general and apartments in particular through a trusted realtor-specialist working in honored agency. However, unfortunately, finding such a specialist is not always easy. Therefore, it is better for a person to know at least the basics of legislation himself in order to be able to control the situation.

Problems with apartments that have been owned for up to three years can be divided into two large groups. The first type of problem is directly fraudulent transactions.

Most often, criminals commit them specifically with apartments owned before those years (or according to such documents), since such a transaction and false papers for it are easier to draw up.

The second type of problem is the seller’s reluctance to pay the mandatory sales tax.

To avoid possible fraudulent schemes when buying an apartment, you should always check several important points. First, ask the seller why he wants to sell the property. The reasons for a real estate transaction must be clear and understandable and inspire confidence.

Secondly, be wary if the cost of the apartment is too low (10-15% below the market price). This is what dishonest people often do to lure their victims. Thirdly, be sure to ask the seller of the apartment for an extended certificate about who was registered in it, even if we are talking about a new building.

You should be wary of minor children, pensioners and other people who, purely theoretically, by law, could lay claim to the property being sold.

If you buy an apartment, and after some time its “legitimate” owner is found and proves through the court that his claims are justified, the apartment will be returned to him, and you will, in theory, be given the money you paid. It doesn’t sound so scary, but in reality it will take a lot of effort, time and nerves.

Fourthly, you should not agree to a deal if the seller does not provide you with a complete package of documents for the apartment - this is a clear sign of real estate fraud. Finally, fifthly, be extremely careful when real estate is sold by certain third parties by proxy without the presence of the owner indicated in the documents. This type of fraud scheme is also very common.

Another common variant of real estate fraud is the simultaneous sale of a property to several buyers. To avoid this criminal scheme, it is necessary to demand from the seller only original documents and not agree to execute the transaction using copies, even if they are notarized.

You can avoid dealing with scammers only by carefully studying the apartment, its history, documentation base and the sellers themselves. So, it is better to contact experienced realtors, notaries and real estate lawyers with this question.

Another situation is that, according to the law, all real estate that a person has owned for less than 3 years (and since January 2016, this period has been extended to 5 years) is considered direct income when sold.

Accordingly, a citizen is obliged to pay income from the sale of such an apartment at 13% of its value. There is only one option to minimize costs in this situation: order a tax deduction, which will save the seller from paying tax on one million rubles.

The entire amount above will be included in the tax base.

In order not to pay a large tax, apartment sellers often ask buyers to draw up documents and a purchase and sale agreement in a special way. At the same time, it is noted in the transaction that the apartment was sold for exactly one million rubles (this amount is exempt from tax), and you give the remaining money to the seller for nothing.

The risk in such a transaction is obvious: if something goes wrong, in court you will only be able to prove the million rubles paid.

You can avoid such an unpleasant situation only if you strictly and “in white” draw up all the papers during the transaction, and also carefully monitor all the documents.

A separate clause in the law designates the property that was received by the current owner by gift. According to the law, within three years the donor can refuse the deed of gift and return the property to himself.

To avoid such embarrassment, always ask the seller not only for a document of ownership, but also for title papers, that is, those by which the property passed to the owner.

This could be a purchase and sale agreement, a deed of gift, an inheritance document, and so on.

You should also be wary if the property was received by the owner by inheritance or will less than three years ago. During this established period, other claimants to the inheritance have the right to file a claim and sue the entire property or its share.

In general, we can say that buying real estate in St. Petersburg is always a responsible process that requires certain knowledge and preparation. Therefore, it is better not to deal with this complex matter on your own, but to use the help of professionals.

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What is "Ownership less than 3 years old"? | Private realtor in Moscow

“Ownership less than 3 years old” literally means that the owner registered ownership of the property less than 3 years ago. Those. from the date of issue of the Certificate of State Registration of Rights, a full 3 years have not yet passed.

“Fresh property” is an essential condition for the purchase and sale of real estate . The seller is subject to tax (personal income tax 13%), and the buyer may face unacceptable risks.

If the seller received property under a gratuitous agreement (for example, privatization, gift or inheritance), then he has the right to a tax deduction of 1 million rubles. If the property right is more than 3 years old, then the seller has the right to a tax deduction equal to the value of the property sold.

Certificate of ownership after January 1, 2016 - valid for 5 years

For real estate objects for which a certificate was received after January 1, 2016 and which were acquired under a purchase and sale or investment agreement, the period for paying personal income tax of 13% on income received from the sale of real estate has been increased to 5 years .

What is the tax for ownership less than 3 (or 5) years?

The seller must pay personal income tax (NDFL) of 13%. The tax base is the difference between the costs of purchasing a property and the cost of its sale.

If the property has been purchased, the seller may indicate the cost of the purchase agreement in the costs of purchasing the property and add the costs of the mortgage and the costs of improvements made.

Expenses must be documented.

If the seller received ownership of the object free of charge - donation, privatization and inheritance , then he can indicate only 1 million rubles in the expense section.

The amount of 1 million rubles is determined for one piece of real estate (room, apartment, etc.), and if a share in the right is sold, then the corresponding share of 1 million rubles can be received as a tax deduction.

As you already understand, the situation when sellers expect to receive a 1 million tax deduction for each share is fundamentally incorrect and foreshadows conflict situations at the end of the tax year

In Moscow, with a cost difference of 4 million rubles. the tax will be 520 thousand rubles. - a very significant amount for the seller. And very often, selling a property with “fresh ownership” involves various tricks. The main trick is to understate the cost of the apartment in the purchase and sale agreement to 1-2 million rubles.

But apartments with reduced prices have low attractiveness in the eyes of the buyer, and can only be sold if the selling price is significantly reduced. On October 1, 2015, the Law “On Bankruptcy of Individuals” came into force, and the attractiveness of apartments with undervalued prices fell “to the plinth” .

Cadastral value in the purchase and sale agreement

In real estate transactions after January 1, 2016, the value of the property should not be lower than 70% of the cadastral value. This primarily concerns transactions in Moscow, because the cost of an apartment of 1 million rubles in the regions differs slightly from the cadastral price.

What are the risks of “ownership less than 3 years” for the buyer?

There are quite a lot of real estate properties with ownership less than 3 (or 5) years old on the market: these are all “yesterday’s new buildings” and houses in new neighborhoods, and these are apartments in the old housing stock.

Moreover, if “yesterday’s new buildings” usually have a difference of up to 30% in cost, then for apartments of the old housing stock received as property free of charge (donation, privatization and inheritance), the difference in cost will be 70-95%.

The buyer's main risk when purchasing real estate is the recognition of the purchase and sale agreement as void . There is a “restitution” of the rights and obligations of the parties under the contract: the property is transferred back to the seller, and the seller is obliged to return the money received to the buyer. In addition, the party guilty of declaring the contract void shall reimburse the other party for the expenses incurred.

With the entry into force of the Law “On Bankruptcy of Individuals,” the risks when purchasing apartments with reduced prices have increased many times over.

An additional circumstance that may arise within 1-3 years from the date of a real estate transaction is the possible bankruptcy of the seller , which, coupled with insolvency, greatly increases the financial risks of the buyer.

A more detailed discussion of the buyer’s risks and ways to minimize risks is discussed in the corresponding article - Risks when buying an apartment and minimizing them.

Risks when buying an apartment less than 3 years old, please help - Pravoved.RU

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Hello!

The total amount of the apartment is 4,100,000 rubles. To avoid taxes on the sale of an apartment to the owner that has been owned for less than 3 years, the realtor proposed the following scheme.

We conclude a purchase and sale agreement for an apartment in the amount of 1,000,000 rubles. The remaining amount is RUB 3,100,000. we prescribe in a separate document for the improvement of living conditions.

The realtor also warned us not to apply for a tax deduction to the tax office in the future, so that it would not suspect anything.

Please tell me how legal this deal is and should we agree to it!?

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Client clarification

This is what the document looks like.

Dear lawyers, please tell me if I can recover this amount of money using this receipt in the future?

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Lawyers' answers (6)

• Victoria, hello. 
• First of all, these are risks associated with the results of terminating the contract or declaring it invalid - if 1,000,000 rubles are written in the contract, then the seller will reimburse you exactly 1,000,000 rubles in case of bilateral restitution. 
• Please explain in more detail about the “document for improving living conditions”, what is it anyway? 

Hello, Victoria!

The remaining amount is RUB 3,100,000. we prescribe in a separate document for the improvement of living conditions.

Victoria

Can you explain more specifically what you are talking about? What kind of document is this? Has the cadastral value of the apartment been established?

 But the seller did not consider the option of calculating tax on the difference between the sale and purchase price of the apartment. This often allows you to avoid paying tax legally.

• 10.0 rating
• 5528 reviews
• expert

Hello, Victoria.

By and large, you have only one risk. If the transaction is terminated, for example declared invalid by the court, then you will be obliged to return 1 million rubles under the Sale and Purchase Agreement, and you will be obliged to return the apartment.

1. Therefore, you need to check the grounds for invalidating the contract.
2. Are there any persons in the apartment who had the right to participate in privatization and refused to participate in privatization? There could have been such persons before your transaction.
3. Also, residential premises are reserved for minors placed under guardianship (reserved) and for those sentenced to imprisonment.
4. You need to find out all this.

Civil Code

Article 167. General provisions on the consequences of invalidity of a transaction

1. An invalid transaction does not entail legal consequences, except for those related to its invalidity, and is invalid from the moment of its completion. A person who knew or should have known about the grounds for the invalidity of a contested transaction, after recognizing this transaction as invalid, is not considered to have acted in good faith.

(paragraph introduced by Federal Law dated 05/07/2013 N 100-FZ)

2.

If the transaction is invalid, each party is obliged to return to the other everything received under the transaction, and if it is impossible to return what was received in kind (including when the received is expressed in the use of property, work performed or service provided), reimburse its value, if there are other consequences of the invalidity of the transaction not provided for by law.

• 8.8 rating
• 6931 reviews
• expert

Hello. In this case, you cover one transaction with another. The main risk in case of termination of the contract is not receiving your money in full. Moreover, you do not have to take into account all the interests of the owner; you need to take your own into account first.  

Improving conditions, is it improving the apartment, some kind of renovation?

• 9.8 rating
• 7215 reviews
• expert

We conclude a purchase and sale agreement for an apartment in the amount of 1,000,000 rubles. The remaining amount is RUB 3,100,000. we prescribe in a separate document for the improvement of living conditions.

The realtor also warned us not to apply for a tax deduction to the tax office in the future, so that it would not suspect anything.

Please tell me how legal this deal is and should we agree to it!?

Victoria

  Further, if you decide to sell before five years of ownership, you do not have the right to count on purchase expenses to reduce the income from the sale, i.e. The tax office will not take into account 3.1 million for you, only 1 million. The same is true if you expected to receive a tax deduction provided for in Art. in connection with the purchase of this apartment.

220 NK - you can get only within one million. Further, the seller may already have problems in this case for tax evasion. In general, it matters when and how the seller purchased this apartment. If after 01/01/2016, then the indication in the contract of 1 million as the price of the apartment does not matter at all due to Part 5 of Art. 217.

1 since taxable income will be calculated taking into account the cadastral value of the apartment

5.

If the taxpayer’s income from the sale of a real estate property is less than the cadastral value of this property as of January 1 of the year in which state registration of the transfer of ownership of the real estate property being sold was carried out, multiplied by a reduction factor of 0.7 , for tax purposes tax income of the taxpayer from the sale of the specified object is taken equal to the cadastral value of this object as of January 1 of the year in which state registration of the transfer of ownership of the corresponding real estate object was carried out, multiplied by a reduction factor of 0.7.

Such a transaction of 1 million rubles could easily become the subject of attention of tax officials. The area of ​​housing is known from official data.

The average cost of one square meter of housing in your area is also no secret. It is not difficult to calculate the approximate cost of housing and that it is more than 1 million rubles.

It is quite possible that you will have to discuss this with the Federal Tax Service employees.