How to invalidate an apartment purchase and sale transaction

To cancel the purchase and sale of an apartment means to bring the parties to their original position. The seller receives the property back, the buyer receives money in the amount specified in the text of the agreement.

In the Unified State Register of Real Estate, the entry about the new owner of the premises is canceled, as if he had never existed. Such consequences are necessary if the contract was concluded with significant violations of the law or the rights of interested parties were infringed.

Today we will look at how to invalidate an apartment purchase and sale transaction within the framework of existing judicial procedures.

Procedure for challenging a transaction

The procedure for invalidating an apartment purchase and sale transaction requires at least minimal preparation. It is not enough to write a statement of claim - you need to prepare your position in advance, calculate the legal grounds and deadlines, and decide on the evidence.

ATTENTION! Recognition of a purchase and sale agreement as invalid is possible only through a court. It is impossible to do this pre-trial. It is useless to contact administrative bodies - Rosreestr, MFC, housing supervision or local administration. This issue can only be resolved in court.

The procedure for invalidating an apartment purchase and sale agreement includes the following steps:

1. Prepare for future legal proceedings.
2. Prepare a package of documents: fill out a statement of claim, collect evidence and pay the state fee.
3. File a claim in court and wait for the court case to be assigned.
4. Take part in the legal process regarding the transaction personally or through a representative.
5. Depending on the outcome of the case, register the cancellation in the Unified State Register of Real Estate or file an appeal against the decision.

It will be possible to recognize a purchase and sale transaction as invalid provided that you pay close attention to the collection and preparation of documents, as well as competently support your position in court.

Preparing for the case

When preparing for a trial, you need to answer at least three questions:

• who will be the plaintiff;
• the basis for invalidity and which rules of law to refer to;
• whether the deadline for submitting documents has passed.

Having decided on them, you can begin filling out the statement of claim.

Who can file a claim

Unlike the termination of an apartment purchase and sale agreement, a wide range of persons have the right to invalidate the transaction. A citizen or government authority may file a claim in court if the DCT violates the rights of the plaintiff or other persons whom the plaintiff represents.

In particular, the requirement to recognize a transaction as invalid may be presented by:

• The parties themselves are the seller or the buyer, and for any reason. For example, the seller was forced to sign an agreement or the buyer discovered significant defects in the legal cleanliness of the apartment, the presence of which was hidden by the seller.
• The husband or wife of the party who did not obtain consent to conclude an apartment purchase and sale agreement. Moreover, verbal consent does not matter here - if there is no notarized document, you can go to court.
• Heirs of the party. Most often, the heirs of the seller who sold the home at a suspiciously low price shortly before his death apply to invalidate the transaction.
• Minor children whose rights have been violated. In practice, there are situations when, during privatization, children were illegally not included among the owners, and many years later the apartment was sold. Children, who are already adults at the time of the contract, apply to the court to cancel such a transaction and recognize their share in the right to housing. Often the court sides with the plaintiffs, annulling the contract and at the same time privatization, if the deadlines for the last requirement are not missed.
• The guardianship authority, if its consent to the purchase and sale of the apartment was not obtained or if the transaction took place in violation of such consent.
• A guardian or trustee of a party to the contract, if permission for the transaction has not been obtained from him.
• The prosecutor, if he reveals a violation of the rights of citizens during any inspection. Most often, prosecutors become involved in the process in the case of the purchase and sale of former municipal or social housing.
• A specific case is challenging a transaction in bankruptcy. If the debtor sold the apartment “on the eve” of the bankruptcy procedure to a person associated with him or at a low price, creditors or the financial manager may ask the court to invalidate the transaction on the grounds that it was fictitious.
• The mortgage lender bank may also ask to invalidate the transaction if the mortgaged apartment is sold without its consent. Read about the correct purchase and sale of mortgaged real estate at this link.

ATTENTION! The Russian Pension Fund, if it detects violations of the use of maternity capital (for example, if parents did not distribute shares to their children), most likely will not challenge the purchase and sale transaction itself. However, he will demand the return of the amount of maternity capital from the violators through the court.

Determining the legal basis

The reason why the transaction should be declared invalid is stated in the statement of claim. All arguments and evidence are summed up under it. The Civil Code divides all grounds into void and voidable, but their essence is the same - if a serious defect in the transaction is identified, it must be canceled, and the parties must return to their original position.

Frequent reasons are:

• the consent of the interested person (spouse, guardianship authority, mortgagor, annuitant) has not been obtained;
• deception, violence or threat due to which one of the parties was forced to sign the DPA;
• misconception regarding the transaction - for example, if the buyer did not know that the apartment was encumbered with lifelong tenants;
• the purchase and sale took place using forged documents;
• violated the rights of minors, heirs or other third parties.

For a more detailed list of grounds for declaring a transaction invalid with references to the norms of the Civil Code, see our previous article.

Calculating the statute of limitations

You can file a claim within a certain period, which is called the statute of limitations. For this category of disputes it is:

• 1 year – for contestable claims;
• 3 years – for insignificant requirements.

The period may be interrupted and suspended, and its beginning for a particular plaintiff may not be on the date of signing the contract, but much later - when he, in principle, learned about the transaction. The total limitation period can reach 10 years from the date of registration of the buyer’s right in the Unified State Register of Real Estate.

ATTENTION! For a detailed article on this topic, read the link: “How to determine the statute of limitations for real estate transactions in 2023.”

Collection of documents

The package of documents for the trial includes:

• statement of claim;
• attachments to the claim - evidence on which the claims are based;
• receipt for payment of state duty.

The list is compiled in three copies - for yourself (the plaintiff), for the defendant and for the court. If there will be another party involved in the case (for example, a third party) or several defendants, documents must be made for each of them. The court package must contain the originals of the evidence, and copies are sufficient for the parties.

Download a sample statement of claim

Step-by-step instructions for filling out a claim statement:

A cap	We fill in the name of the district (city) court and its address. Next, for the plaintiff, indicate the full name, address, and telephone number. Specify the same for the defendant. It is not necessary to provide passport information. If there is a third party (Rosreestr is often involved) - indicate the name and address. Then the price of the claim and the amount of the state duty are indicated.
Name	You can indicate a general “Statement of Claim”, but it is better to write it together with the type – “Statement of Claim for invalidation of the purchase and sale agreement”
Descriptive part	State the actual circumstances. Who and when the contract was signed, when it was registered, description of the apartment and the essence of the violation of rights that were caused by this transaction. Provide references to legal norms, for example, “according to Art. 167 of the Civil Code of the Russian Federation...” References must match the circumstances. For example, if the sham of a transaction is described, there is no need to refer to the article about threats and misconceptions.
Petition part	It begins with the words “I ASK FOR COURT.” A specific requirement is indicated, for example, “to recognize the purchase and sale agreement as invalid and apply the consequences of the invalidity of the transaction” for voidable transactions and simply “apply the consequences of the invalidity of the transaction” for void ones. It is also recommended to enter the requirement “Restore (or cancel) in the Unified State Register the entry on registration of ownership rights of the full name for the apartment. Oblige the Federal Service for Registration, Cadastre and Cartography for ... to make appropriate changes to the Unified State Register of Real Estate,” so that the decision becomes the basis for making a corresponding entry in the Unified State Register of Real Estate.
List of applications	List all documents that are attached to the application.
Signature and number	The plaintiff puts his signature in his own hand; it does not need to be certified by a notary. It is better to put the date with the date of filing the application to the court.

ATTENTION! Download the claim form to fill out.

Collecting evidence

The list of evidence to invalidate a transaction depends on the basis. For example, if the spouse’s consent has not been obtained, you will need an extract from the Unified State Register of Real Estate, which contains the registrar’s mark “consent not received.” If disputed on the basis of mental illness of a party, medical certificates and extracts are required.

In any case, you need:

• extract from the Unified State Register of Real Estate for the apartment (extended with a list of transfers of rights);
• disputed DCP + acts and payment documents thereto;
• certificate of registration;
• technical passport - if illegal redevelopment is identified;
• documents on privatization, if these facts need to be established for the case.

The plaintiff may not have the necessary documents on hand. For example, how to prove that children's rights were not taken into account during privatization? In such cases, you need to ask the judge to make appropriate inquiries to the competent authorities, for example:

• to the municipality - to request a privatization case;
• to a notary – to request a case of inheritance of a disputed apartment;
• to the bank - to request mortgage documentation if the transaction was fictitious and was used to obtain a cheap loan.

IMPORTANT! Evidence may be presented as the proceedings progress. There will be at least two court hearings - preparatory and main. During preparation, the court will tell you what papers need to be submitted.

Any photographs and video materials, testimony of witnesses that support the position of the party demanding that the sale and purchase be declared invalid will also be useful.

We pay the state duty

The requirement to invalidate a transaction relates to property disputes. The state duty will be calculated based on the price of the apartment specified in the contract.

The cost is as follows:

If an apartment costs, for example, 2,700,000 rubles, the duty is calculated as 13,200 + 8,500 (0.5% of 1,700,000 rubles) = 21,700 rubles.

Details for paying the fee must be obtained from the court that will consider the application. You can pay through a bank - for example, at an ATM or from a Sberbank operator, no commission is charged.

Let's file a lawsuit

A purchase and sale can be declared invalid through a court of general jurisdiction at the district or city level. There is no need to go to the court of the subject (regional, territorial, etc.) - this is a higher authority.

Documents can be submitted in person or by post. In the latter case, the day the letter was sent will be the day the application was submitted - very often this rule helps if there is one day left of the statute of limitations. After receipt, the documents are distributed to the judge, who schedules a preparatory meeting within 5 working days.

If there are errors in the claim (for example, a fee was not paid), the judge issues a ruling in which he describes what needs to be corrected. After the shortcomings are corrected, the application requesting that the purchase and sale be declared invalid is accepted for processing.

How does the trial work?

The proceedings, as a rule, take several meetings, during which legally significant facts are established:

• during preparation, the judge reviews the documentation as a first approximation, hears the position of the parties and explains what evidence may be required;
• during the main court hearing, evidence is considered, witnesses are heard, explanations are added that make it possible to recognize the purchase and sale as invalid;
• if necessary, the judge postpones the trial to conduct a forensic examination or prepare new evidence;
• When all the facts are established, a decision is made on the merits - to recognize or not to recognize the purchase and sale as invalid.

The plaintiff and defendant can defend their rights independently or entrust the conduct of the case to a representative. The duration of the trial in the court of first instance takes from 2 months and depends on the complexity of the case.

The decision has been made - further actions

The procedure does not end with a decision. Depending on the outcome, it is necessary to either challenge the judicial act or register the cancellation of the purchase and sale transaction as invalid in the Unified State Register of Real Estate.

Challenge on appeal

If you are not satisfied with the court's decision, it can be challenged on appeal. The success of the appeal will depend on how fully the court investigated the case and whether it made mistakes. Only decisions made in violation of the law are cancelled.

ATTENTION! New evidence cannot be presented on appeal if it has not been presented at first instance.

The parties have 30 days to appeal. Both the plaintiff and the defendant, as well as an involved third party (for example, Rosreestr) have this right.

Register the decision in the Unified State Register of Real Estate

The final stage of the process is making changes to the Real Estate Register. You can submit an application after the decision comes into force:

• after 30 days, if no one has appealed;
• after the adoption of the appeal ruling, if appealed.

To register changes, you will need a decision with a mark on entry into legal force (will be placed in the office of the district court) and the applicant’s passport. The application will be filled out by an MFC employee during the reception. Registration will take up to 14 days.

The purchase and sale agreement can be declared invalid through the court according to the instructions above. After preparing for the case, you need to fill out a statement of claim, attach evidence and send the documentation to the district (city) court. The purchase and sale decision can be appealed or changes can be made to the Unified State Register of Real Estate.

Dear readers! The information given in this article is general information only. When resolving a specific issue, you need to enlist the support of a lawyer. You can consult with a specialist and get advice on how to invalidate a purchase and sale transaction in your case through the chat window in the lower right corner of the screen.

You may be interested in: how to challenge a deed of gift in 2023.

Invalid transactions under the new rules

Almost two years have passed since significant amendments were made to Russian legislation regarding invalid transactions (No. 100-FZ dated 05/07/2013). Those that violate the requirements of the law were previously considered insignificant, but are now voidable.

The statute of limitations has also changed. Despite the fact that in the last decade the number of illegal and problematic transactions has decreased, one can hardly talk about high-quality legal and financial protection for the buyer.

What specific changes have occurred and how do they affect today's residential real estate market?

Alexey Komarov, a notary from St. Petersburg, Vadim Lyashchenko, manager of the Academy of Sciences of the RBNO, and Irina Shcherbinina, a real estate expert, helped answer our questions .

What has changed in the new legislation? What are the limitation periods (i.e., after what period can the buyer of an apartment be completely calm and free from claims of participants in the transaction and third parties)?

Alexey Komarov : “In May 2013, changes were made to the Civil Code of the Russian Federation, which distinguished between the concepts of voidable and void transactions (invalid transactions), reclassifying most void transactions as voidable (Article 168, clause 1 of the Civil Code of the Russian Federation).

The main difference between void and voidable transactions is the moment of their invalidity, and the time frame within which they can be challenged. The nullity of a transaction (in other words, its invalidity) does not depend on a court decision. The transaction is void from the very beginning of its conclusion and does not give rise to any legal consequences for the parties.

A voidable transaction can only be declared invalid by a court decision; accordingly, until such a decision, the concluded agreement has legal force and is binding. By the time of the changes, a problem had arisen regarding transactions concluded in the real estate market: any transaction concluded by the parties in violation of the current legislation was recognized insignificant.

 In addition, a claim for recognition of a void transaction could be brought by any person. This possibility in practice led to abuses by persons who, having no specific interest in the concluded transaction, tried to destroy it.

Now, for both a voidable and a void transaction, only a party to the agreement or a person expressly specified in the law, for example a trustee, in other words, a person who has an interest in challenging the transaction of Art. 177, 166, clause 2 of the Civil Code of the Russian Federation.

The main reason for declaring transactions invalid due to insignificance is a transaction made by an incapacitated person, Art. 171 Civil Code of the Russian Federation. That is, the citizen selling the housing was deprived of legal capacity by the court before the sale agreement was concluded. In such a transaction, the court will oblige the parties to return to each other everything received under the purchase and sale agreement.

The buyer in this transaction is the weaker party, since, having returned the purchased housing, the question arises of returning the money, which the incapacitated person, of course, no longer has. For voidable transactions without competition, Art. 177 of the Civil Code of the Russian Federation: a transaction concluded by a person incapable of understanding the meaning of his actions or managing them.

If in the first case the fact of confirmation of incapacity is sufficient - a court decision declaring the citizen incompetent, then in relation to 177 Art. According to the Civil Code of the Russian Federation, the court will order an examination, and taking into account other evidence of the parties, a decision will be made to recognize the transaction as invalid or to refuse the relevant claims.

Speaking about the legal mechanism for protecting the right of a home purchaser, we can say that there are essentially two of them: the statute of limitations and qualification under Art. 302 of the Civil Code of the Russian Federation as a bona fide purchaser. In the first case, the limitation period for transactions is one year for a voidable transaction and three years for a void one.

For void transactions, where a claim is made by a party to the transaction, the limitation period begins to run from the moment of execution of the contract; if the claim is made by a third party, then from the moment when he learned or should have known about the fact of concluding the contract. It is important to note that from 05/07/2013 No. 100-FZ introduced amendments to Art. 170. The Civil Code of the Russian Federation in the qualification of a sham transaction.

A sham transaction, the consequences of which is nullity, is now also a transaction concluded on conditions other than those specified in the contract. These changes may have implications for parties to undervalue a transaction to optimize taxation. It can be assumed that, for example, the spouse who gave consent to the sale of housing will be able to recognize the transaction as void on this basis if the consent itself does not express the cost of the sale of jointly acquired property.”

What are the most common reasons for invalid (void and voidable) transactions today? Is this a common occurrence or rare? Have there been such cases in your practice (or in the history of the company) and if so, how did it end for the buyer?

Vadim Lyashchenko : “In most cases, an invalid transaction obviously contains an element of an offense. Therefore, professional participants in the real estate market who respect themselves and value their reputation try to stay away from such transactions. The same can be said about void transactions.

Another thing is transactions in which one of the parties bears one or another risk, including the risk of challenging the current or previous transactions with the object. Such risks may have nothing to do with offenses, but be present in the history of the object.

The task of a specialist accompanying the buyer is to promptly identify this risk or risks, assess their magnitude, suggest possible ways to minimize and give appropriate recommendations to the client.

Such recommendations, depending on the specific situation and specific risks of contestation, can be very different - refusal to purchase, demanding an adequate discount, providing additional statements, guarantees, etc.

The task of a specialist accompanying the seller is to detect and minimize the risks of contestability of previous transactions with the object at the stage of preparing documents for the object being sold, and to give his motivated assessment of the risks to the counterparty (buyer).

Often, assessing the contestability of transactions and the likely consequences becomes the subject of heated debate between the seller and the buyer with the participation of their lawyers, agents and banking specialists. Sometimes common sense wins out in these debates, sometimes it doesn’t.

In practice, one encounters very different attitudes among interested participants in the debate towards such risk factors of the contestability of transactions, such as, for example:

• — non-participation in the privatization of minors (in the period before August 1994);
• — the absence of one of the residents due to being in prison;
• - donation between non-relatives;
• — deregistration by proxy;
• — deregistration without registration in another place;
• — recognition of property rights by court decision;
• — non-market price in the contract;
• - unequal exchange without additional payment;

- a fresh deal with a bona fide purchaser. The list goes on, and every experienced specialist will have something to add to it. But the most memorable cases are when colleagues try to hide the risks of their property from you. This happens rarely, but that doesn’t make it any less disgusting.”

Irina Shcherbinina : “Invalid transactions have become a rarer occurrence than before, in the heady 90s. Firstly, because Rosreestr controls the rights of minors and does not conduct transactions with their property without the permission of the guardianship authorities. Secondly, the market for real estate services is now more transparent, large companies operate in it. Thirdly, with the introduction of the concept of a “bona fide purchaser,” buyers have become more protected if the transfer of rights to the apartment is registered according to the rules of Rosreestr and if the purchase and sale agreement includes the full price.

However, there are voidable transactions.

And, as a rule, their most common reasons are the following: - the appearance of relatives after the execution of the annuity agreement; - the appearance of heirs about whom the seller did not know (or was silent); - infringement of the rights of minors during privatization in the 90s; - carrying out a transaction with a person registered in a drug or mental health clinic without examination at the time of the transaction.”

How can you minimize risks when buying an apartment?

Irina Shcherbinina : “Minimizing risks when buying an apartment should begin from the moment you call the list of options.

I would advise you to immediately exclude from the list recent rent, inheritance less than three years old, as well as inheritance and donation from someone else (not a relative). Now there are a lot of options on the market and it’s not worth the risk. The chosen option should be carefully checked.

Better with the help of a specialist. Let a realtor or lawyer collect a “dossier” on the apartment being purchased, from which possible risks will be visible.”

Alexey Komarov : “Speaking about the legal mechanism for protecting the right of a home purchaser, we can say that there are essentially two of them: the statute of limitations and qualification under Art. 302 of the Civil Code of the Russian Federation as a bona fide purchaser.

Let me remind you that immunity to the seizure of property - housing from a bona fide purchaser does not apply to gratuitous transactions (donations) and if the court determines that the property was disposed of against the will of the owner (sale using forged documents).”

Have there been any cases in your practice of declaring a notarized transaction for the purchase and sale of an apartment invalid? If so, how did it end for the buyer?

Alexey Komarov : “Not in my practice.”

Are there cases when you do not recommend buying an apartment due to the high probability of the transaction being invalidated in the future?

Vadim Lyashchenko : “It is extremely rare, but “exotic” proposals for transactions arise, which, if actually executed, may subsequently be declared invalid.

Such proposals come not from sellers, but from buyers, and relate, for example, to making payments in unusual forms that are formally unrelated to the property being purchased.

Naturally, we categorically insist on refusing to involve the client in such “transactions.”

Irina Shcherbinina : “Yes, I had two such cases. I explained to my clients why I decided there would be problems in the future. I hand over all checks.”

How do you feel about insuring the risk of loss of title? Do you recommend taking out such insurance for every purchase of real estate?

Irina Shcherbinina : “I treat insurance and insurance companies with a fair amount of skepticism. In our difficult times, any company can easily close or declare bankruptcy.

And sometimes, insurance contracts are drawn up so cunningly that they exclude compensation for losses in certain scenarios. An example of this is the Chalaev case, in which litigation between an insurance company and a mortgage bank lasted for several years.

Are the rights of real estate buyers sufficiently protected today and what would you propose to change in the legislation if there was such an opportunity?

Alexey Komarov : “There will always be grounds for challenging concluded transactions established by law, therefore a one hundred percent guarantee of the property rights of the home purchaser is a myth.

The state needs to resolve the issue of guaranteeing 100% compensation to bona fide persons who, as a result of declaring transactions invalid, are left without money and housing, which requires making a fundamental decision, determining the real guarantor of the legality of property rights with the introduction of appropriate legislative changes. This, in turn, will lead to the issue of a systematic solution to the problem of the turnover of secondary housing, where the issue of adopting a law on real estate activities is important and where the solution to the issue of licensing, the volume of activity and the responsibility of agents and brokers, which have always been and will be important, should be reflected an element of streamlining the civil circulation of housing and the first professional whom citizens buying or selling real estate meet. And as we know, the first impression can only be made once.”   

Invalidation of the purchase and sale agreement 2023

• Content:
• Grounds for declaring a purchase and sale agreement invalid Which transactions are considered void Which transactions are considered voidable Statute of limitations for challenging a transaction Statement of claim for declaring the purchase and sale agreement invalid
• Often people, not knowing where to start and doubting the purchase and sale agreement, ask a number of questions such as:

• Is it possible to challenge an apartment purchase and sale agreement?
• How to cancel an apartment purchase and sale transaction after registration
• Invalidation of a land purchase and sale agreement
• How to invalidate a car purchase and sale agreement
• What are the reasons for declaring an apartment purchase and sale transaction invalid?
• Statute of limitations for challenging a purchase and sale agreement
• In what cases can you challenge an apartment purchase and sale agreement?

1. Challenging a purchase and sale agreement must be distinguished from its termination, since the law provides for completely different grounds for termination of a transaction, in addition, any agreement can be terminated by agreement of the parties.
2. The situation is different with challenging the contract.
3. A civil transaction can only be challenged in court ; no other government body is authorized to establish the invalidity of the transaction.
4. Any transaction of a civil law nature can be challenged, but this requires clear legal grounds.

How to invalidate a purchase and sale agreement? Legal consultation by phone. Tel.+7 (812) 989-47-47 Telephone consultation

Grounds for invalidating a purchase and sale agreement

• First of all, you need to understand on what grounds you can challenge a purchase and sale agreement.
• A purchase and sale agreement is a bilateral transaction, which is subject to the provisions of the Civil Code of the Russian Federation on the invalidity and insignificance of transactions.
• The law establishes a list of grounds for declaring a contract invalid, as well as the time frame within which a transaction can be challenged in court.
• The list of grounds for challenging transactions established by law is exhaustive, that is, not subject to broad interpretation.
• What is the difference between voidable and void transactions?

• A void transaction is invalid in itself, initially, regardless of whether it is recognized as such by the court. In court, demands can be made to apply the consequences of the nullity of such a transaction, or to declare it invalid.
• A voidable transaction is invalid only if it is recognized as such by a court.

Which transactions are considered void:

• The transaction does not comply with the requirements of the law (in form and content) and at the same time infringes on public interests or the interests of third parties
• The transaction was made for a purpose that is obviously contrary to the principles of law and order or morality
• The transaction was made only for show, that is, it is imaginary
• The transaction was made with the aim of covering up a completely different transaction, that is, it is sham (for example, a gift agreement covers a purchase and sale)
• The transaction was made by a person who was declared incompetent by a court due to a mental disorder, or by a person who at the time of concluding the contract was under 14 years of age (excluding small household transactions of a minor)

Which transactions are considered voidable:

• A transaction is concluded by a person whose age is from 14 to 18 years, without obtaining the consent of parents (trustees, adoptive parents), in cases where such consent is mandatory by law. (Note: without parental consent, such citizens can independently manage their scholarships and other earnings, exercise their copyrights, and make small household transactions. In all other cases, the written consent of the parents to complete the transaction is required).
• The transaction was made by a person with limited legal capacity (recognized as such by a court decision), without the written consent of his trustee, or if the transaction is not approved in writing by the trustee after its conclusion. (Note: such persons can independently carry out only small household transactions and/or manage their earnings).
• The transaction was made by a person who is legally capable, but at the time of its signing could not account for his actions and manage them due to a mental disorder , or if such a citizen, after the conclusion of the transaction, was recognized by the court as incompetent or partially capable, and the fact is proven that At the time of the conclusion of the contract, he also did not understand the significance of his actions.
• The transaction was made under the influence of threat, violence or unfavorable circumstances . (Note: At the same time, it is necessary to submit a corresponding application to law enforcement agencies).
• The transaction was made under the influence of deception , that is, when concluding the contract, the other party deliberately kept silent about the circumstances that it was necessary to inform the victim about. If the deception came from a third party who is not a party to the transaction, then in order for the court to declare such a transaction invalid it is necessary to prove that the second party to the transaction knew or should have known about the deception.
• The transaction is enslaving , that is, it was concluded by the citizen under force, as a result of a combination of difficult circumstances and on conditions that were extremely unfavorable for this person, which the other party took advantage of.
• When making a transaction, the person was significantly mistaken regarding: the subject or nature of the transaction; was misled regarding the identity of the second party to the contract or another person associated with the transaction. It should be remembered that misconception regarding the motives of the transaction does not entail its invalidity .

Limitation period for challenging a transaction

The law separately establishes limitation periods for invalid transactions (Article 181 of the Civil Code of the Russian Federation).

Depending on whether the transaction is voidable or void, the limitation period is:

• 1 year – for voidable transactions . The period runs from the moment when the plaintiff learned or should have learned about the circumstances that serve as the basis for recognizing the transaction as invalid, or from the day when the threat, under the pressure of which the contract was concluded, ceased.
• 3 years - for insignificant transactions . The period runs from the moment the transaction began to be executed by the parties. If a transaction is disputed by a person who is not a party to it, this period is calculated from the moment when this person learned or should have learned about the beginning of the execution of the transaction, despite the fact that the total statute of limitations for filing a claim by a third party cannot exceed 10 years . This means that if a third party who is not a party to this transaction wants to challenge the purchase and sale agreement for an apartment after 10 years, then even if the plaintiff learned about the beginning of its execution 10 years later, the court can apply the limitation period to such claims prescription

Is it possible to challenge a purchase and sale agreement? A lawyer will answer your questions. Tel.+7 (812) 989-47-47 Telephone consultation

The statute of limitations is a material period, and therefore its omission in itself does not deprive the party of the right to apply to the court with the corresponding demand; the court in any case is obliged to accept the claim for its proceedings and initiate a civil case.

This period can be applied by the court only at the request of the defendant . That is, if the defendant does not declare that the plaintiff missed the limitation period, the court does not have the right to apply it at its own discretion, even if the missed period is significant.

In the event of a statement by the defendant, missing the limitation period is grounds for refusing to satisfy the claims in full, without examining the circumstances of the case.

At the same time, do not forget that if good reasons are proven, the plaintiff’s statute of limitations may be restored by the court .

To do this, you must file a petition in court to restore the missed statute of limitations and provide clear evidence that the deadline was missed for a good reason. This could be a long-term serious illness, surgery or other circumstances that objectively do not allow the plaintiff to go to court in a timely manner to protect his violated rights.

As we see, if there are grounds, any transaction, including a purchase and sale agreement, can be challenged in court.

In order to provide qualified advice on the possibility of challenging a transaction, a lawyer needs to carefully study the relevant documents, and only after that can he assess the current situation and correctly determine the grounds on which a specific contract can be challenged.

Taking into account the complexity of such disputes, it is very reasonable to entrust the conduct of a dispute in court to challenge a purchase and sale agreement to a competent practicing lawyer.

Statement of claim for invalidation of the purchase and sale agreement

Before going to court, you need to carefully prepare for the process - this means collecting the necessary documents. In the claim, you must clearly and competently state your legal position, correctly formulate your claims, the form and content of the claim must comply with the requirements of Articles 131-132 of the Civil Procedure Code of the Russian Federation.

Jurisdiction: A claim to invalidate a contract for the purchase and sale of real estate or movable property worth more than fifty thousand rubles is filed in a district (city) court.

Territorial jurisdiction depends on what claims are made in the claim. Thus, if only one claim is made to declare a transaction invalid, then the general rules of jurisdiction are applied - at the place of residence of the defendant (Art.

28 Code of Civil Procedure of the Russian Federation). If the claim includes demands for the application of the consequences of the invalidity of the transaction and recognition of the right to the property, jurisdiction is determined in accordance with Art. 30 of the Code of Civil Procedure of the Russian Federation - at the location of the disputed property.

In any case, to correctly determine jurisdiction for this category of disputes, one should adhere to the rules of jurisdiction established by law in Articles 28-32 of the Code of Civil Procedure of the Russian Federation, taking into account the subject of the dispute.

By the way, in the law enforcement practice of Russian courts, resolving questions about the jurisdiction of disputes regarding challenging real estate transactions is very ambiguous, therefore it is advisable to entrust the determination of the jurisdiction of such a claim to a lawyer.

Evidence: Any written sources (personal documents, receipts, bank statements, judicial acts, other documents confirming certain facts according to the grounds stated in the claim), witness testimony, photo and video materials, expert opinions can be presented as evidence in court and etc.

As mentioned above, each individual basis on which a contract is disputed requires certain evidence. You can't bring everything to court.

Challenging a transaction is a complex and delicate process, and arrogance in this case is not the best help.

Consultation with a lawyer on civil law in St. Petersburg. Tel.+7 (812) 989-47-47 Telephone consultation

Legal services for challenging a transaction:

• Drawing up a statement of claim and other procedural documents (petitions, statements, reviews, objections, complaints, etc.)
• Preparation for trial, assistance in collecting evidence
• Filing a claim in court
• Conducting cases in courts of all instances (first instance, appealing a judicial act in higher courts)

The lawyers of the PetroYurist center will help you win your dispute in court. You can make an appointment for a consultation by calling the number indicated on our website.

Invalidation of an apartment purchase and sale transaction

A transaction is a legal fait accompli. To invalidate a transaction, compelling circumstances are required. You need to prepare especially carefully for cases of declaring an apartment purchase and sale transaction invalid - the courts understand the value of real estate in Moscow and examine such cases carefully.

It is important to know: transactions can be declared invalid for various reasons. You can find out all of them during a consultation - our lawyers will tell you in detail how to invalidate a transaction to buy or sell an apartment.

What transactions can be declared invalid?

The invalidity of a transaction means that, from a legal point of view, such a transaction was never concluded. That is, we must assume that this deal did not exist at all, because it was concluded illegally: using threats, deception, or by a person who did not have the right to enter into it - more about this is discussed below.

The reasons why a court may invalidate a transaction are stated in Articles 166-181 of the Civil Code:

• A transaction is void if it is contrary to law. (Example: a person who has been given a power of attorney to sell an apartment cannot, using this power of attorney, buy an apartment for himself. Such a transaction is invalid.)
• A transaction is invalid if it is immoral or contrary to the principles of law and order.
• An imaginary transaction is invalid - that is, a transaction made only for show. (Example: a person’s apartment may be taken away for debts. He sells this apartment to his relative so that it cannot be arrested. Such an apartment purchase and sale transaction may be declared invalid.)
• If a transaction is made by an incapacitated person, then this transaction is also invalid. (Example: a mentally ill person owns an apartment. He is selling the apartment. His relatives can demand that the apartment purchase and sale transaction be declared invalid, and for this they do not even need to go to court.)
• A transaction made by a person under the age of 14 is invalid.
• A transaction is invalid if the consent of a third party to complete it was required, but there was no such consent. (Example: Article 35 of the Family Code indicates that for the sale of an apartment that is jointly owned by spouses, the notarized consent of the other spouse is required. If this consent was not given, the spouse who objects to the transaction can sue. Another example: if the apartment belongs to a child under 14 years old, parents cannot sell it so easily. You need permission from the guardianship authorities (part 2 of article 37 of the Civil Code of the Russian Federation, part 3 of article 60 of the RF IC). If permission is not obtained, the guardianship may sue to recognize the transaction the purchase and sale of the apartment is invalid.)
• You cannot make transactions with apartments, the disposal of which is limited. (Example: the court has arrested an apartment. It cannot be sold until the arrest is lifted.)
• A transaction is void if the person involved in it was not aware of his actions when he entered into the transaction. (Example: a person was given alcohol and forced to sign an agreement. You can go to court to declare the transaction invalid.)
• A transaction for the purchase and sale of an apartment is declared invalid if one of the parties to the transaction is significantly mistaken regarding this transaction. (Example: an old man with poor eyesight is given a purchase and sale agreement for an apartment to sign, saying that this is, for example, a rental agreement or some documents for social security. A deceived person can go to court to have the deal declared invalid.)
• A transaction made under the influence of deception, threat, or violence is invalid. (Example: a person is put a gun to his head and forced to sign a contract for the purchase and sale of an apartment - such an agreement is declared invalid by the court.)

There are 2 types of transactions that are recognized as invalid - voidable and void. To terminate a voidable transaction, you need to go to court. To terminate a void transaction, going to court is not required, because such transactions are invalid in themselves, and a court decision is not needed.

Okay, but how can a voidable transaction be declared invalid?

To do this you need to go to court. There are enough difficulties in such cases: to correctly write a statement of claim (Article 131 of the Code of Civil Procedure of the Russian Federation), attach all the necessary documents to it (Article 132 of the Code of Civil Procedure of the Russian Federation) and correctly determine the jurisdiction - this is the smallest part of the problems.

The claim must indicate:

• name of the court where it is filed (at the location of the apartment);
• the name of the plaintiff, his place of residence;
• the name of the defendant and his place of residence;
• description of the situation - when the contract was concluded, etc.;
• reasons why the court should terminate the contract. This is where one or more of the reasons described above need to be stated;
• list of attached documents.

Among these documents there must be a receipt for payment of the state duty, which in cases of declaring an apartment purchase and sale transaction invalid is significant - 13,200 rubles + 0.5% of the amount exceeding 1,000,000 rubles (clause 1 of part 1 of article 333.19 of the Tax Code of the Russian Federation).

Well, the biggest difficulty in such cases is to prove in court that there is a reason to recognize the apartment purchase and sale transaction as invalid. For example, how to prove that the seller of the apartment was drunk at the time of signing the contract? Or how to prove that one of the parties to the transaction was threatened?

In practice, it happens that people file a claim to invalidate a transaction, but do not include in the claim a requirement to restore the previously existing situation - that is, to return the apartment to the seller, and the money to the buyer. If this is not done, you will have to file a new claim.

Part 2 of Article 167 of the Civil Code of the Russian Federation clearly states that “if the transaction is invalid, each party is obliged to return to the other everything received under the transaction,” that is, it would seem that there is no need to include this requirement in the claim - it is already established by law. But the courts have a different opinion.

The courts like the requirement to “return everything to its place” to be explicitly stated in the claim.

It is important to know: this is only a small part of the difficulties that arise in practice. Therefore, the participation of a professional lawyer or at least his consultation is necessary.

Why do you need the help of a lawyer?

Recognizing an apartment purchase and sale transaction as invalid is a sequence of legal stages. And questions can arise at any of them.

For example, before going to court, is it necessary to send your opponent a written proposal to terminate the purchase and sale agreement for an apartment? As a general rule, yes, it is necessary. But in our case, we are not talking about terminating the contract, but about declaring it invalid, and these are different things.

In addition, it is better to win the case in the first instance. If denied, you can file an appeal, but this will waste time and money. Moreover, when a judge on appeal reverses the decision of a lower court judge, this is an indirect reproach of unprofessionalism. Therefore, it is better to win immediately.

• free legal advice on invalidation of an apartment purchase and sale transaction;
• analysis of the situation and judicial perspective of the case;
• collecting documents to confirm the correctness of your position;
• writing and filing a statement of claim;
• representation in court.

Remember - declaring an apartment purchase and sale transaction invalid is a rather complicated matter, since you need to prove in court that there are reasons for this recognition. Moreover, you need to be prepared for the fact that your opponent will refute your arguments. This requires the support of a qualified lawyer or at least competent legal advice.

Therefore, contact us for a free consultation on what is necessary to invalidate an apartment purchase and sale transaction. The consultation is completely free and does not obligate you to anything. To do this, just call or leave a message in the form below.

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