Is it possible to buy or sell an apartment owned in a dilapidated building for demolition: buying dilapidated housing

In this article we will consider the possibility of selling an apartment in a building recognized as unsafe. We will describe the detailed process of selling dilapidated housing.

We will analyze what documents are needed to complete the transaction, all possible nuances, features and risks when buying or selling an apartment.

We will also find out whether it is possible to sell an apartment received under the relocation program and what is needed for this.

Dear readers! Our articles talk about typical ways to resolve legal issues, but each case is unique.  

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Is it possible to sell housing if it is recognized as dangerous and designated for demolition?

Transactions of purchase and sale of dilapidated housing are regulated by:

It is possible to purchase or sell housing that is classified as unsafe, legally. But you need to know that a mortgage for housing that is in disrepair is not provided; the bank will issue a negative decision in issuing loan funds.

It is also worth noting that in such a case it is also not possible to use maternity capital for real estate designated for demolition.

You may be interested in the following articles:

The property owner must be notified by the housing inspection about the seizure of real estate intended for demolition no later than one year before the proposed demolition.

The owner of the property must sign an agreement to seize the property, in accordance with the housing code.

Before a government agency legally formalizes the demolition of a building and the owner signs an agreement to seize the property, the property may be sold or transferred to third parties. This means that before signing the legal papers related to the liquidation of the building, absolutely any operations can be done with the real estate.

Where to begin?

Before drawing up a purchase and sale agreement, the owner of the property is obliged to warn potential buyers that the building is recognized as unsafe. After this, you need to prepare the necessary package of documents, as well as draw up an agreement. You can draw up the contract yourself or seek legal assistance.

Required documents

• Passports of the parties.
• Applications from the parties to register the transfer of ownership of the apartment.
• A completed purchase and sale agreement with a transfer and acceptance certificate.
• Cadastral passport for property.
• A document confirming payment of the state duty when submitting to Rosreestr.

It is likely that additional documents will need to be provided on an individual basis. It is imperative to indicate in the DCP that the buyer is aware that the building in which the housing is purchased is subject to demolition in the near future.

How to make a deal?

The scheme of the transaction for the sale of housing for demolition looks like this:

1. Drawing up a pre-sale agreement with the terms and conditions of the parties.
2. Preliminary cash settlements between participants.
3. Drawing up a purchase and sale agreement.
4. Notarization of the agreement, if the parties need to contact a notary.
5. Registration of the transaction in Rosreestr.
6. Signing the deed of acceptance and transfer of real estate.
7. Receiving documents from Rosreestr.

Payment occurs according to the terms of the drawn up agreement - during the purchase and sale transaction or after registration of the property in Rosreestr by the new owner.

Nuances and features

The purchase and sale agreement must be concluded during the period from the moment the house is included in the program until the conclusion of the exchange agreement (or agreement on payment of compensation) with the municipality.

After the exchange (compensation) is completed, the owner can no longer sell his apartment to a third party.

Risks of the parties

For the seller:

• Sale of real estate below market value due to incorrect valuation or illiterate presentation of the property to buyers.
• Difficulties in finding buyers, since the purchase of emergency housing is in less demand.

For the buyer:

1. If a buyer purchases a dilapidated property because the building is part of a renovation program, then this fact must be independently verified. Lists of housing earmarked for demolition can be found in the public domain and you can find out whether a particular house is included in the renovation program.

   It is worth noting that the lists of buildings for demolition may be modified and certain houses may be excluded from the program. This is quite risky if you purchased an old home at a high cost in order to get housing in a new building, since you simply may not get such an opportunity.

2. The deadlines associated with obtaining a future apartment for relocation may shift, which implies an indefinite period of relocation.
3. The proposed relocation option may not always suit homeowners.

Is the sale of property received under the resettlement program permitted?

And if you received an apartment as a result of relocation, is it possible to sell it?

The owner of a new property, which was issued to replace dilapidated housing, can be sold under standard conditions. The owner of the new apartment has absolutely the same rights as with the previous apartment, which means he can carry out any transactions with real estate - sale, transfer, donation, etc.

But for some citizens who decide to sell an apartment received under the relocation program, it comes as a surprise that they have to pay tax on the sale of real estate. In this case, the period of ownership of the previous dilapidated property is not included in the calculation of ownership of the new apartment.

• The relocation procedure involves a new calculation of housing ownership - the owner officially owns the apartment from the date of registration of the property in Rosreestr, this period can also be shifted, since relocation usually takes place in new buildings that have not yet undergone certain legal measures, which complicates the process registration.
• The owner is obliged to pay a tax fee in the event of a purchase and sale transaction, if the transaction occurs within the next three years from the date of registration of the property in Rosreestr.
• The amount of tax depends on two circumstances:

• The period of ownership of the property.
• Cadastral value of real estate.

Individuals who sold residential property are required to pay personal income tax to the budget in the amount of 13% of the income received. The basis for payment will be the provision of a declaration and the necessary documents confirming the ownership and subsequent sale of real estate.

It is also possible to receive a tax refund when selling housing. Purchasing property for renovation is a fairly profitable business. Since the cost of dilapidated housing is significantly lower compared to newer analogues, which means the purchase of such property will pay off significantly when moving to a modern apartment in a new building.

It is worth noting that the total area of ​​the Khrushchev building and the resulting apartment in the new building differ:

• 30 sq. m. Khrushchev = 38 sq. m. in a new apartment.
• 45 sq. m. Khrushchev = 58 sq. m. in a new apartment.
• 58 sq. m. Khrushchev = 70 sq. m. in a new apartment.

According to the law, the replacement of real estate must take place with an identical total area of ​​the property, but such a small footage is simply not provided for in modern residential buildings.

It is possible to complete a purchase and sale transaction for residential real estate designated for demolition, but provided that the owner of the apartment has not executed an exchange agreement for the purpose of further relocation. The sale of dilapidated housing occurs under almost the same conditions as the sale of standard housing.

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Is it possible to sell emergency housing?

When a house is unfit for habitation, it is considered unsafe. Officially, residents must be resettled within the specified time frame. Is it possible to sell an apartment in a recognized emergency apartment building? Should such a house be considered a successful investment? Or is purchasing an apartment in such a building clearly an unsuccessful and unpromising deal?

What the law says

According to the current legislation, there are no specific prohibitions on the sale of this type of housing; accordingly, a dilapidated house can be sold. The transaction will be considered valid until the new owner signs an agreement on the seizure of the area by the housing stock or other structures.

The purchase and sale process is regulated by the same requirements and laws with only one note that the building in which the property is located is unsafe. The seller is obliged to provide this information to the buyer, and it is advisable to provide a document on the timing of resettlement before selling the apartment.

Buyers are advised to find out whether the house is included in a specially designed program for the resettlement of owners from a dilapidated building. This is important to do, because if the house is not on the list, you can’t even count on this fact. First, you will have to go through the procedure of recognizing the house as non-residential, and this takes a long time and takes a long time, so there is no point in purchasing such real estate at all.

Deal Features

The sale is formalized in the usual manner according to the standard procedure for registering real estate transactions. You can buy dilapidated housing. However, some difficulties may arise in the process related to the possibility of acquisition.

Before making a purchasing decision, consider the following factors:

• The duration of the house's stay in the resettlement program - not a single official can accurately name the period when the owner will be given the keys to the new apartment. This may take a year, and sometimes 10-15 years or more. The longer a house is on the list, the greater the chance that resettlement will occur in the near future.
• The purchase of dilapidated housing is not always approved on credit - banking institutions are in no hurry to approve applications for mortgage or other types of lending for the purchase of dilapidated housing. If consent is given, it will usually be accompanied by expensive insurance. Banks thus protect themselves from possible losses associated with the condition of the house.
• Maternity capital cannot be used to purchase such housing, since its main purpose is to provide children with good, safe living conditions. Emergency apartments and houses are not suitable for this.

Young families can only count on state support by receiving a housing certificate, which gives the right to partial payment for future real estate.

Determination of cost

If the house is recognized as unsafe, the apartment in it can be sold, but its value may differ slightly from the market price.

When determining the redemption price for emergency housing, one should take into account the estimated value of the apartment, as well as the costs incurred by the owner for the repossession of housing and other expenses associated with the property.

The final price is determined based on an agreement between two parties - the buyer and the seller.

Why sell?

The property has been privatized; relocation from dilapidated housing to new, clean, spacious housing should soon take place. Why do people put their apartments up for sale without waiting for this event? Often they are simply tired of waiting and want a calmer development of events. After all, even during resettlement, not everything always happens as it seems from the outside.

In practice, actual relocation does not happen - usually a price is assigned per square meter, and its amount is significantly lower than the market price. This is due to the fact that dilapidated housing requires additional repairs, investments, and demolition costs. Doing this at your own expense is not beneficial to anyone, so such expenses are subtracted from the cost of the apartments.

Thus, selling an apartment is profitable - rather than waiting for who knows what, it’s easier to immediately put it up for sale, indicating the desired amount.

Who's buying?

A house that is considered unsafe is not suitable for comfortable living. All buyers have a single goal - to pay a low price for a future, more expensive home.

The resettlement of property owners, as a rule, occurs in new apartment buildings. For this reason, you can purchase a good new building at a low price.

However, you should not delude yourself and expect that the deal will be profitable. You can sell dilapidated housing, but is it worth buying it? They can purchase a plot of land and offer the owners an insignificant amount, which will be difficult to use for the purchase of good housing.

In return, they may give you a spacious apartment, but in a very unfavorable location, on the other side of the city or even in another region. Nowhere is there a requirement to provide housing only at the place of residence of the owner, so proposals may turn out to be quite unexpected.

According to the law, a person is allowed to refuse, but his refusal does not serve as a basis for non-receipt - accordingly, a situation is possible in which he will have to agree to at least something.

Restrictions

The terms for the sale of an apartment in a dilapidated building are not regulated, however, the Housing Code of the Russian Federation imposes some restrictions:

• if, at the time of signing the purchase and sale agreement, a court decision was made to evict the owner due to his refusal to accept the purchase price or unwillingness to move to the new housing provided to him;
• the owner of the premises no longer has ownership rights to the housing, since he signed an agreement with regional authorities on paying the redemption price or receiving housing in return.

Privatization of non-residential premises in a dilapidated building is impossible, as this is contrary to the law on privatization. Accordingly, it will not be possible to sell such premises, as well as apartments in which the tenants live under a rental agreement and are not the owners.

Conclusion

It is possible to sell an apartment in a dilapidated building in the absence of restrictive conditions. It is important for buyers that the transfer of residential premises to emergency status has already occurred, otherwise the transaction will turn out to be completely unprofitable. Living in a building that is about to be demolished is impossible, so they try to resettle the owners of such houses as soon as possible.

Thus, purchasing emergency living space for the purpose of obtaining profit justifies itself in isolated cases. To do this, it is necessary to carefully study information about the condition of the house and the timing of its inclusion in the lists of the resettlement program. Taking into account the restrictions imposed by banks, it is important to understand that the purchase of such housing is possible exclusively with your own funds.

Is it possible to sell emergency housing? Link to main publication

Buying a house to be demolished: pros and cons

Is it worth considering a “house for demolition” as a promising investment and is it possible to then get a new building for the price of an old “Khrushchev”? Experts explain that an apartment in an old building can be a comfortable home, but sometimes you have to wait a very long time to move, moreover, after a while you can get an absolutely unacceptable option. Considering the purchase of real estate not as a solution to housing problems, but as an investment, in addition to properties on the new building markets and secondary housing, you can pay attention to apartments in houses for demolition. We present arguments in order to understand whether it is worth doing or not.

• House to be demolished - quite a comfortable place to live
• To begin with, it’s worth remembering the most obvious advantages of such a purchase. Oksana Ivanova, head of the city real estate sales department of the Nagatinskoye branch of the NDV-Real Estate company, reminds that, most likely, in areas with such houses, the infrastructure is developed, the houses themselves are 5-story, and accordingly, they have few neighbors:
• The process of obtaining a new home can take a long time

– Such proposals are characterized by a wide range of shortcomings, due to which the selling price of these objects is lower. In fact, low cost is the main advantage of apartments that belong to the old housing stock and are subject to demolition in the foreseeable future. In addition, among the advantages here: the possibility of obtaining new housing in a new building and a larger area, lower cost of apartments in an area with developed infrastructure, fewer neighbors - less crowded parking spaces.

Buying a home in a house that is slated for demolition does not at all guarantee a quick move to a new apartment. There are many reasons: the developer may have problems, there may be a crisis in the market, and it is far from certain that you will be able to move somewhere at all. Vladimir Ageychikov, General Director of the real estate agency Megapolis-Service , Ivanteevka:

– Buying an apartment in a building that is about to be demolished is quite a risky business. Firstly, no one can guarantee that this house will eventually be demolished. Secondly, moving to a new home to replace the demolished one can take a long time: either a crisis will strike, or the developer will go bankrupt. It’s easy to buy an apartment in a building that is being demolished, especially since it costs less than its market counterparts, but it will be difficult to sell it later if something happens. In addition, living in an old house means either enduring inconvenience or constantly spending money on repairs. Another option is to rent out such an apartment. But this is difficult, and the rental price will obviously be low. The main possible bonus remains - the chance to improve your living conditions for free, at the expense of the developer. But here it’s up to anyone to be lucky. In a word, a lottery...

Buy a pig in a poke

If the decision to purchase is nevertheless made, it is worth thinking through all the details and finding out as much information as possible about the house. Artem Khokhlov, director of the Zemelya Academy of Sciences in Irkutsk, partner of the Megapolis-Service Kyrgyz Republic , warns against rash purchases:

– If we talk about purchasing housing in a house for demolition, then initially it is necessary to imagine the ultimate goal of this purchase. And there are many nuances here: you need to clearly understand how the resettlement process is going, the timing of demolition, what kind of living space you can count on in the future. In a word, if the goal is investment, then before buying such housing, you need to evaluate whether it makes sense from the financial side, whether it will turn out that, having invested money, you will be stuck for a long time in a dilapidated house where something is constantly needed repair. But if you buy such housing for personal needs, then you should think very, very carefully. It's like buying a pig in a poke: you don't know what kind of apartment and when they will give you in return, where it will be located, and how suitable it will be for your family. It’s good if the new apartment turns out to be in the same area where the previous one was located in a dilapidated or dilapidated building, because otherwise you will have to place your children in another school, kindergarten, and change your environment. And the basic distance from the place of work is also an important factor.

1. In practice, people sell dilapidated housing without waiting to move
2. In fact, instead of a new building in a convenient area, residents of demolished houses often receive only money from the sale of their apartment, and even then at a discount. Elena Ivanova, leading specialist of the legal department of the Megapolis-Service Corporation of Realtors, says :
3. Legal advice
4. It recently became known that the capital authorities intend to simplify the procedure for relocating emergency housing.
5. Instead of a house to be demolished, you can get an even worse option

– All the advantages of an apartment in a building to be demolished are offset by the disadvantages associated with the dilapidation of housing, which requires large investments in repairs before moving into a new one. So the moment of buying in such a house is very delicate. As far as I know, in Elektrostal near Moscow in the Megapolis-Service Academy last year there was a case when a client asked about selling his apartment in a building that was being demolished. The reason is that the person did not want to experience the hassle of deadlines and other things, but preferred a calmer development of events. And, I must say, in my own way I turned out to be right, since the apartment was sold at a slight discount in a short time. The new owners have only recently received the keys to the apartment in the new building. If the procedure is nevertheless started, then the owners will most likely be offered a withdrawal agreement. Elena Ivanova shares the intricacies of legal procedures: – From a legal point of view, I can say the following. If the house is definitely going to be demolished, then at this time the owners will be asked to enter into an agreement on the seizure of real estate for state or municipal needs; forced seizure of residential premises is also allowed on the basis of a court decision (Part 1, 9 of Article 32 of the Housing Code of the Russian Federation). The owner may be sent a notice of the decision to confiscate the residential premises he owns, or this may be a draft agreement on the confiscation of housing for state or municipal needs. The procedure and deadlines are established by law (Part 4 of Article 32 of the Housing Code of the Russian Federation). The owner of the residential premises subject to seizure may own, use and dispose of it at his own discretion. It can also make investments that will ensure the further use of the residential premises (Part 5 of Article 32 of the Housing Code of the Russian Federation). During the procedure for providing new housing, you need to count on housing of equivalent value. However, it is worth remembering that if you don’t like the proposed option, they will not babysit you and constantly offer you new apartments. Elena Ivanova warns against excessive hopes, because among the alternative options, there may be one that you don’t like: – When determining compensation for residential premises, the homeowner can count on receiving the equivalent of the market value and the value of the common property in an apartment building, taking into account his share, and he can also claim compensation for losses caused by the seizure of his premises (Part 7, Article 32 of the Housing Code of the Russian Federation). By agreement, you may be provided with another premises in exchange for the seized premises, with its value offset when determining the amount of compensation for the seized housing (Part 8 of Article 32 of the Housing Code of the Russian Federation). The residential premises provided when relocating from the emergency fund may be located at your place of residence, it can be chosen within the boundaries of this locality or within the boundaries of another locality of a constituent entity of the Russian Federation (subject to the written consent of the owner).

Separately, I would like to note that when you receive a replacement, your refusal to provide premises in another locality (including repeated ones) cannot be grounds for refusing to provide them to you. In other words, you may have to agree to the option you don’t like (Part 3 of Article 16 of Law No. 185-FZ of July 21, 2007).

Peculiarities of buying an old house in a village or an apartment in a building recognized as dilapidated or in disrepair: nuances of transactions

After a house is declared unsafe, the life of the property continues. The legislation of the Russian Federation does not prohibit such transactions, but they have a number of features. Each case of purchase and sale of dilapidated housing is unique, but our material provides answers to questions that all buyers and sellers of real estate recognized as dilapidated ask themselves. Read the article and you will learn about all the legal subtleties.

Dear readers! Our articles talk about typical ways to resolve legal issues, but each case is unique.  

If you want to find out how to solve your particular problem, please contact the online consultant form on the right or call +7 (499) 938-51-36. It's fast and free!

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Is it possible to sell dilapidated housing or not?

The owner of housing recognized as unsafe is not deprived of his rights to real estate after a verdict is passed on the dilapidation of the building by the interdepartmental commission. This means that the owner of an apartment or house has the right to carry out any actions, including resell square meters. It is important to remember that housing is considered unsafe if the wear and tear of load-bearing structures, walls or roofs is dangerous to the life and health of residents. If the house is recognized as unsafe, then citizens can count on relocation.

Dilapidated housing - what is it? Legally, this is a different term, although it is considered together with the above in Federal Law No. 185 “On Dilapidated and Disrepair Housing”.

Sometimes owners of dilapidated properties are offered relocation, but renovations are also possible. In the article we discuss only the actions of the owner of emergency housing.

Attention! After concluding an agreement on the purchase of housing by the municipality, the owner cannot dispose of the apartment, including transferring rights to it to third parties. After all, from this moment on, the city administration already owns the housing.

When a new owner becomes the owner of an apartment in a dilapidated building, all the rights of the former owner are transferred to him. The municipality conducts its own negotiations with each owner of an apartment in an old building.

It is profitable to buy an apartment in disrepair if the owner offers you a significant discount. In this case, you definitely can’t go wrong – you will either receive an apartment in a new building, the market value of which will significantly exceed the funds spent, or compensation. Before purchasing, we advise you to check whether the house is included in the targeted relocation program.

Article 87 of the RF Housing Code. The procedure for providing residential premises under a social tenancy agreement in connection with the transfer of residential premises to non-residential premises or its recognition as unsuitable for habitation

If residential premises occupied under a social tenancy agreement are subject to transfer to non-residential premises or are recognized as unsuitable for habitation, the landlord provides citizens evicted from such residential premises with another comfortable residential premises under a social tenancy agreement.

What should owners of private old properties in villages and cities do?

In the village, the commission that must inspect the house also meets after the owner’s application.

It must indicate: “I ask you to recognize the house as unfit for living” and attach documents indicating ownership of the dilapidated house and the plot on which it is located.

The state does not impose additional restrictions on the owners of such houses, however, resettlement programs in small towns are being implemented more slowly. And the owners use the unsuitability of their main housing mainly as an argument for getting an apartment.

If the house is not included in the targeted resettlement program, then the city government has no obligations to its residents, and you will not receive compensation/new housing.

You need to clarify the timing of the program. In some cases, you have to wait several years - this is a common reason for owners’ decisions to sell their home.

To receive funds immediately, even in smaller quantities, and not wait for an apartment for years.

If we are talking about replacing an apartment with another, the owner can buy housing profitably with a rather modest discount, because the new apartment can be located in a well-developed area. However, there is also the other side of the coin - sometimes housing is provided in poorly developed areas, and you have to wait a long time for it.

Reference! A deal with local authorities seems less risky, the main thing is that the starting price of the apartment is lower. Agree with the owner and receive a significant bonus.

Pros of purchasing an apartment:

• Opportunity to make a profit by concluding a buyout agreement.
• Opportunity to obtain housing in a new building under the relocation program.

Disadvantages of purchasing an apartment:

1. Long wait for an apartment.
2. Low assessment of the apartment when purchased by local authorities.
3. New apartment in an area with poor infrastructure.

The new owner of the apartment will only be able to find out the approximate time frame for the implementation of the resettlement program. No city administration can guarantee that relocation or repurchase will take place on time; force majeure is possible, which increases the waiting period.

You should weigh the pros and cons before making such a purchase. Often the specific area where apartments will be provided becomes known later. This deprives a potential buyer of the opportunity to objectively assess the benefits of such a purchase in advance.

Owners of maternity capital will not be able to invest public funds in dilapidated housing, since the law states that the house must be suitable for living.

Important! Difficulties also arise if it is necessary to obtain additional funds for such a purchase - banks are very reluctant to lend for transactions with emergency housing. And if a loan is nevertheless provided, it is complete with expensive insurance of square meters.

The purchase algorithm in comparison with the purchase of normal housing is almost identical, the only difference is the seller’s obligation to inform the buyer about the condition of the housing and the buyer’s right to become familiar (if desired) with the features of the property being purchased by requesting a certificate from the Unified State Register. You can buy housing in disrepair either in an apartment building or as a separate premises.

Procedure for concluding an agreement: step-by-step instructions

1. Inspection.
2. Verification of documents.
3. Bargain.
4. Conclusion of an agreement.
5. Transfer of money.
6. Property registration.

Buyer Notice

The seller must inform the buyer of the condition of the apartment or house, moreover, indicate in the contract that the new owner was notified that the house was declared unsafe. Otherwise, the transaction may be declared invalid at the request of the potential buyer. At this stage, the parties must also agree on a price and negotiate.

The owner must prepare passports of all owners of the apartment, a document confirming ownership or an agreement on the basis of which the living space became the property of the current owner of the apartment, an extract from the house register and a technical passport for the property will be needed. The owner does not have to prepare a statement about the condition of the apartment or house. A potential buyer of real estate, if desired, has the opportunity to request it himself.

The spouse's consent to the transaction will have to be notarized, and from co-owners under eighteen years of age or incapacitated, permission for the transaction will have to be obtained through a trustee.

The contract for concluding a transaction for the sale of housing must be drawn up correctly. Contact a lawyer to avoid possible mistakes.

It is important to know! A certificate of absence of utility debts cannot be called mandatory, but the buyer will most likely ask to see it, so that the process does not drag on for this reason, take it in advance.

The first, and most important thing, is to describe the subject of the contract. The transaction must indicate what property the ownership rights are being transferred:

• Year of construction, date of last major renovation.
• Number of floors (for apartment buildings and private buildings).
• Residential and full quadrature.
• Number of rooms and their features (walk-through or separate).
• Home accidents.
• Transaction amount.

Next, the homeowner confirms ownership by indicating the certificate information. The parties to the transaction are called the buyer and the seller, the text indicates the full name (full name), registration, passport details, including when and by whom it was issued.

It is necessary to stipulate the grounds for termination of the transaction, usually they are standard - by agreement of two parties, at the request of one party through the court, refusal to pay the cost of the property by the buyer.

Additionally, the parties have the right to conclude any acts, for example, on the timing of payment of funds, the payment procedure, a deposit or compensation for registration costs.

Reference! Lawyers advise covering as many issues as possible in the contract and its amendments so that, if necessary, both the buyer and the seller can defend their rights through the courts.

Payment can be made at the time of signing the contract or the act of acceptance of housing. The parties themselves agree on how the money will be transferred; both cash and non-cash payments can be used.

The safest way to ensure that the owner receives the agreed amount is by bank transfer.

In Russia, the sale of dilapidated housing can be beneficial both to the owner who does not want to wait for resettlement, and to the buyer hoping to make a profit.

If you have decided to buy an inexpensive old house in the village, then we can please you - the law allows such transactions, and their algorithms differ from generally accepted schemes in only a few nuances. All purchase and sale processes can begin after the property is recognized as unsafe.

Didn't find the answer to your question? Find out how to solve exactly your problem - call right now:

+7 (499) 938-51-36 (Moscow)

It's fast and free!

Is it prohibited to sell an apartment in a dilapidated building?

In the Russian Federation, there is no ban on the execution of a purchase and sale transaction in relation to a dilapidated apartment. The legislative framework regarding dilapidated and dilapidated housing, regulating the issues of its sale, as well as ensuring the guarantee of the rights of new owners, consists of the following regulations:

• Housing Legislation of the Russian Federation;
• Government Decree No. 47, issued on January 28, 2006;
• Federal Law “On the Fund for Assistance to Housing and Communal Services Reform” No. 185, adopted by the State Duma on July 21, 2007.

In Art. 32 of the Housing Code of the Russian Federation states that a person who becomes the new owner of emergency housing receives a list of additional guarantees.  

How to sell emergency housing

The procedure is similar to that for ordinary apartments. The owner of a residential property put up for sale is obliged, having found a buyer, to inform the latter that the house where the apartment he is purchasing is located is on the emergency register.

Note! When purchasing real estate, it would not hurt for each buyer to independently check this data using an extract from the Unified State Register, since many unscrupulous sellers prefer to remain silent about such circumstances.

However, the law establishes some restrictions on the sale of emergency housing. According to Art. 32 of the Housing Code of the Russian Federation, a purchase and sale agreement cannot be signed if:

• at the moment, a court decision has been made on the forced eviction of the owner from the housing (if he refused both the redemption price and similar housing in return, and a municipal or government body filed a lawsuit against him);
• the owner has already concluded a deal with a regional authority or self-government body to pay the redemption price or exchange the apartment.

Previously, the building in which the apartment is located undergoes a technical examination conducted by a specialized interdepartmental commission. The latter makes a conclusion on assigning the specified status to the house.

Possible difficulties

In practice, the purchase and sale of a distressed apartment may be associated with some difficulties, for which both the seller of the property and its potential new owner should be prepared.

Firstly, if the buyer purchases emergency housing with the aim of subsequently receiving a new apartment under an exchange agreement, which will have living conditions similar to these, he must take into account the fact that there are no 100 percent guarantees regarding the timing of relocation.

The legislation does not prescribe specific time frames for resettlement, but leaves to regional executive and self-government bodies the right to independently determine them.

Secondly, it is not always possible to get the expected housing in return. Often, an authority or local government may offer an apartment with conditions worse than the existing ones. The redemption price as an alternative option can also be significantly underestimated. Then you cannot do without litigation.

Important! If the owner of an emergency two-room apartment is given a one-room apartment in return, but with similar conditions and area of ​​the premises, this is not a reason to file a lawsuit.

Thirdly, the buyer needs to be prepared for the fact that when applying to a bank for a loan to purchase emergency housing, a natural refusal may follow, since the financial institution is reinsured in case of unforeseen risks.

Fourthly, if a family has received a payment under the maternity capital program for the purchase of housing, it will not be able to spend it on purchasing a dilapidated apartment. It does not matter whether it is partial or full payment of its cost. This rule is related to the need to protect the rights of the child to safe living conditions.

Thus, purchasing housing that is part of a dilapidated building can turn into a risky business, leading to difficulties in obtaining another living space or compensation for the previous one. 

Deregistration is carried out at the initiative of citizens. This procedure may involve both municipal and private housing. Experts say that citizens are encouraged to deregister... Several categories of citizens can challenge the privatization of an apartment. Firstly, these are people who never knew anything about privatization. Secondly, these are citizens who happen to be registered in the premises, cat... The process of privatization of real estate has been going on for quite a long time, about 20 years. During this entire period, many problems arose that were overcome. But people still continue to face obstacles...

08/14/2022 — Nadezhda Ryabova

Is the seller of an apartment liable if he hid the fact that the building in which he is selling the apartment is considered to be in disrepair?

Personal income tax from the sale of an apartment received as a result of resettlement

Do they pay tax on the sale of housing, including those received through resettlement? According to Art. 208 of the Tax Code of the Russian Federation (clause 5, clause 1), proceeds from the sale of real estate in our country are subject to personal income tax in the amount of 13 percent of the amount of income received by the seller. But such a tax is paid only if the period of ownership of the property does not reach the minimum.

Personal income tax calculation

When selling a new living space, many believe that the 5-year period is counted from the time the previous home was handed over to the property. Since the resettlement took place with the confiscation of the old home, that is, forcibly, the current living space was acquired even without the consent of the owner.

But there are no exceptions to the legislation here - the period of ownership of the previous living space is not taken into account. Among other things, just because you have practically lived in a new property for five years does not mean that you do not need to pay personal income tax when selling it.

Tax on the sale of an apartment purchased through resettlement

Effective January 1, 2016, legislation extended the holding period required to exempt taxpayers from the tax levy to five years.

This provision applies to the property registered as of the date indicated.

According to the law, in most cases, in order not to calculate income tax when selling a residential property, you must own it for at least five years.

What about housing obtained during relocation from dilapidated and unsafe buildings? For objects purchased after January 1, 2016, Art. 217.1 of the Tax Code of the Russian Federation has established for income tax purposes the following minimum maximum periods of ownership of property:

• three years for housing acquired through inheritance or as a result of donation, the privatization process, or rent;
• five years in other situations.

Important! When resettling dilapidated housing that belongs to a citizen by right of ownership, only the period of ownership of the allocated living space is taken into account.

Based on Art. 576 of the Civil Code, the requirements of purchase and sale apply to the exchange agreement. More precisely, the owner has the right to a property deduction (from an amount not exceeding 1 million rubles), or to reduce the amount of taxable income from the sale of a home by the amount of expenses spent and documented expenses associated with its acquisition.

Application for property deduction

In a situation where five years have not elapsed since the issuance of the document on ownership of the current housing, the corresponding deduction that is possible upon its sale is equal to only 1 million rubles. (Article 220 of the Tax Code of the Russian Federation, paragraph 1, paragraph 1).

Let's look at an example calculation. When selling a one-room apartment for the amount of RUB 1,600,000. the personal income tax amount will be 78,000 rubles. ((1,600,000 – 1,000,000) x 13 percent). If housing is more expensive, the tax collection will be prohibitive.

To receive a deduction, you must send a tax return no later than April 30 of the year following the year of sale. Personal income tax must be paid no later than July 15 of the same year.

Accounting for expenses when purchasing a new home

What specific costs are meant in tax legislation is not indicated. Various types of expenses that fit this concept are taken into account. Since in our situation the property being sold was received in exchange for the old one, the following is taken into account:

1. the cost of the previous living space on the date of its transfer to the city. It is noted in the exchange agreement signed with government agencies (LC RF, Article 32);
2. expenses for the purchase of the previous residential premises.

Questions and answers

1. Does a citizen have the right to sell an apartment that was received under a program called “Dilapidated Housing”?

If residential premises are provided on the basis of social rent, the guests have the right to privatize it, and there are no encumbrances for subsequent sale. If it is issued on the basis of ownership, after drawing up the necessary documentation, it is also possible to sell it .

1. An apartment in a new building was allocated for resettlement in 2016. The property has been owned for less than five years. When selling, is the selling party subject to tax?

The period of ownership of housing, taking into account the period of ownership of the old living space, is not provided for in accordance with Art. 217 of the Tax Code of the Russian Federation (clause 17.1).

Consequently, in a situation of relocation from a dilapidated (or emergency) home owned by the owner, only the time of ownership of the current living space is taken into account in the calculation.

When selling real estate purchased under an exchange agreement under the relevant program, a tax levy of 13 percent is provided on the amount that exceeds one million rubles, or on the difference received between the income from the sold apartment and the costs of its acquisition.

Example 1

1. In September 2017, our family received a new apartment under the Dilapidated Housing program. We have the opportunity to exchange real estate in another area and for a larger area, immediately at the time of moving. Will the transaction be subject to tax? Do we need to enter into an agreement? We want to sell housing for 2.1 million rubles, buy a new one for 2.7 million rubles, that is, the difference is 600 thousand rubles.

During the sale of residential premises, which were issued under an exchange agreement under the dilapidated housing program, a fee of 13 percent of the amount exceeding 1 million rubles is paid.

, or from the difference between the income from the sold apartment and the costs of its acquisition.

If you exchange living space for a larger square footage under an exchange agreement, in any case, the requirements relating to the purchase and sale transaction will apply to it.

When purchasing housing (for 2.7 million rubles), you can also take advantage of a deduction - in the amount of no more than 2 million rubles. But only if the taxpayer has not previously used this privilege. You have the right to return 260 thousand rubles. (13 percent of 2 million rubles).

Example 2

Mother and father purchased cooperative housing in Leningrad in the 60s. In 15 years they were able to pay off the installments; in 1996, the parents registered ownership of this housing (they did not privatize it).

Currently, under the Dilapidated Housing program, the mother received living space under an exchange agreement (she was forced, she did not want to move), she received ownership rights after 01/01/16. My mother is already 82 years old, I am taking her with me to buy a property next to me.

Is it necessary to pay tax on the sale of my mother’s apartment and why?

“The legislator did not provide any benefits or discounts for pensioners in this case. The legislator has provided rules for everyone. You are required to pay tax when selling an apartment. Expenses for the acquisition of a property will be equal to the cost of living space noted in the exchange agreement.

When the price is not specified in the agreement, the market value of the property being sold is taken into account, as well as the amount of additional payment from the difference in the price of the property. The value is set by the appraiser, in accordance with Federal Law No. 135-FZ dated July 29, 1998 “On Valuation Activities in the Russian Federation,” explains V. NDV-Real Estate, a lawyer at the company.

Dronov.

Thus, having sold housing purchased under an exchange agreement under the “Dilapidated Housing” program, a personal income tax is provided in the amount of thirteen percent of the amount exceeding 1 million rubles, or the difference in the surcharge between the amount of income from the sale and acquisition costs.

Read also the article ⇒ Tax deduction when selling an apartment.

Typical mistakes when selling an apartment received through resettlement

Mistake #1. Offer housing at a high price

This mistake is key today. The fact is that the seller simply does not have time to follow the real estate market. Buyers also look at the timing, that is, how long the apartment is on sale. If a residential property is not sold for a long period, then suspicions may arise that it is an illiquid property, or that the property being sold has legal problems.

Mistake #2. Do not provide a discount or do not give a bonus

Just a few years ago, they would bargain at the very last moment, after which the parties would shake hands and make a deal.

Nowadays, customers are increasingly asking about bonuses and discounts when they make their first phone call.