Risks when purchasing an apartment from a contractor

Buying an apartment from a contractor involves risks; it is worth understanding the specifics of such a transaction. Although such an offer is not on the real estate market and will be 5-15% more profitable in cost, the risks also increase. It’s worth knowing how to minimize them if you want to get housing at a more affordable price.

Where does the contractor get the apartment from?

A contractor is a construction organization with which the developer will enter into an agreement for the construction of a facility, that is, this is actually the company that builds the house. The contractor can also be a supplier of building materials or a company that carries out communications. That is, any company that takes part in the construction of a house is considered a contractor.

Important! The contractor receives apartments as payment for his work, a kind of barter on mutually beneficial terms.

Apartments from the contractor will cost less, and that’s all, because the settlement with him is under an agreement. Naturally, the apartment “costs” him less and they are interested in selling it as quickly as possible. After all, what is needed is not apartments, but free funds, and besides, the contractor has enough apartments from previous projects.

This widespread decision is connected with the crisis, since the developer simply has nothing to pay for the services of the builders, and in order not to delay the delivery deadline, they are looking for any possible options to still complete the construction of the house and put it into operation.

As a result, a vicious circle closes:

1. The developer does not have the money to pay the contractor.
2. It is calculated by apartments.
3. Builders need free money, so they sell the resulting property at a dumping price.
4. Cheap apartments from contractors are entering the market. This means that the developer cannot sell his more expensive ones in the same house.
5. As a result, the developer again has no money and so on in a circle.

Where to find cheap options

Of course, it is relatively cheap; the cost will be 5-15% lower than that of the developer. Of course, you won’t be able to find such apartments on bulletin boards.

Contractors build rather than look for buyers, so they most often use the services of realtors and real estate agencies.

You can find such desirable real estate through familiar realtors; they show such square meters with great desire, since they are quickly snapped up, which means they get their profit from the transaction faster.

Benefit or risk

It would seem that in such a situation the buyer wins, since the apartments are offered at a lower price. But it’s not that simple; there are risks, and they are quite serious. First, it’s worth understanding the essence of the relationship between the developer and the contractor. The first, unable to pay for construction work, offers the builders payment by providing them with an apartment. This is often discussed at the stage of signing cooperation agreements.

Two agreements are concluded between the parties at the same time:

1. Contract work agreement. According to it, the contractor is obliged to build the house within the agreed time frame and put it into operation.
2. DDU on the contractor, according to which the developer is obliged to transfer the apartment to the contractor.

At the same time, the main task of both is to attract a third party to the transaction - the buyer, in order to receive real money.

Main danger

Based on the mutual agreements between the developer and the contractor, the main catch and risk arises for the buyer. It consists in the fact that the contractor urgently needs free money to carry out his work and fulfill his obligations to the developer.

The organization is looking for buyers, offering to verbally agree to receive an apartment with a discount of up to 15%, provided that the entire amount is paid at once.

The contractor promises that when the house is put into operation, the transaction will be formalized and the apartment will become property.

As a result, the buyer of such real estate faces a double risk - failure by the developer to fulfill its obligations, as well as by the contractor. Theoretically, it is possible to solve the problem with the developer, but with the contractor it is impossible even in court, much less prove the fact that he received the funds.

How to avoid problems and save money

Not all apartments are sold before the building is put into operation; often, after several years from the commissioning of the property, apartments are unsold. In this case, that is, when the living space is registered as a property, you can buy it. The discount, of course, will be lower, but risks are practically eliminated, since a purchase and sale transaction is being completed.

In addition, there are a number of factors that need to be taken into account in the process:

1. It is worth checking the reputation of the developer, how intensively the properties are being delivered, whether there are cases of non-delivery, financial situation, etc. You need to check all permits to see if there are any debts.
2. The DDU must be registered; only in this case will it be possible to exclude double or triple sales.
3. The contractor must have a certificate of full payment for the apartment, copies of the document on offset for the real estate. This will mean that mutual obligations have been fulfilled.
4. If the apartment is registered as a property, this is an ideal option.
5. You need to request a document about ownership and equity participation in the unified register.
6. If the contracting organization is a joint-stock company, it is worth checking whether the person offering the apartment has the authority to take such actions.

Registration procedure

Such a transaction with the contractor must be formalized, and after the transaction the following papers must remain in hand:

• Contract of sale. It must include mandatory items: the date of preparation, details of the parties, the price paid for the apartment, its description, by which an unambiguous identification can be made. Signatures of the parties.
• An act of acceptance and transfer of real estate with signatures of both parties.
• Documents confirming payment of the state duty, which is paid by both parties in equal parts when registering the contract.

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The following documents are required from the contractor:

1. Certificate of absence of registered persons in the apartment.
2. A certificate confirming the absence of debt on utility bills.
3. An extract from the unified register, which should indicate that the property has no encumbrances or arrests.
4. Payment document.

Registration with Rosreestr upon completion of the transaction is mandatory.

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Conclusion

Anyone looking for real estate has a desire to buy an apartment with a price significantly lower than the market price. But in pursuit of low prices, one should not forget about the risks, because you can be left without money and without an apartment. Only careful checking and balanced decisions will make it possible to save money and not be left in the cold.

Buyer's risks when purchasing an apartment from a contractor: what is important to know Link to main publication

Buying an apartment from a contractor under an assignment agreement in a rented house: risks

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Purchasing an apartment in a new building is a fairly profitable way to solve housing problems. You can buy it from a developer, investor or contractor.

In the latter case, the price is often the lowest. But such a transaction as buying an apartment from a contractor under an assignment agreement has serious risks.

It’s worth figuring out how to protect yourself and whether it makes sense to buy real estate from contractors.

What is the essence of the deal?

Many potential buyers do not understand why they buy real estate from contracting companies and how they end up with it in the first place. A contractor is an organization that provides services to the developer at various stages of construction.

Such companies carry out construction, installation and finishing work, do glazing, and landscape the territory.

Since developers often experience a shortage of financing, especially during periods of sales decline, they pay their counterparties by offset. The contractor receives for his work not real money, but square meters in a new building.

This occurs by drawing up a DDU between the parties. The transfer of rights under the agreement is subject to state registration.

It also happens that builders hand over completed housing to contractors. In such cases, a purchase and sale agreement is concluded. The contracting organization registers the square meters as its property and then resells them.

Of course, the performer may not be happy with this. But sometimes he is simply presented with a fait accompli, and he has to agree to a deal. As a result, the contractor sells apartments to strangers under an assignment agreement. Since he needs to buy materials, pay taxes, and salaries to staff, housing is usually sold at minimal prices.

Stages of purchasing a home from a contractor

The scheme for purchasing an apartment from a contractor looks something like this:

• The buyer is looking for a suitable offer. In this case, it is necessary to study the reputation of the developer, its history, check the constituent and other documents. Do not be tempted by very low prices: the likelihood of fraud or delay in delivery of the object is too high.
• The agreement between builders and contracting companies is carefully studied. It is necessary to find out whether it is registered with the Registration Chamber, whether there is a prohibition in the text on the transfer of rights or restrictions requiring the payment of remuneration to the developer. It is also necessary to find out whether there are any encumbrances imposed on the object.
• The living space is being inspected. If we are talking about real estate in the early stages of construction, the visual inspection will have to be limited to getting to know the infrastructure and checking whether construction is being delayed. When purchasing square meters in a rented house, a full check is made of the condition of the apartment and its compliance with the project.
• An agreement is signed. In the case of an unfinished apartment, this will be an assignment agreement. Finished square meters are transferred under a purchase and sale agreement.
• State registration of transfer of ownership in Rosreestr.
• The buyer accepts the apartment with the keys from the contractor (of course, if it is completed). The result of acceptance is documented in a transfer deed.

Thus, when concluding a contract during the construction process, the future owner is not given the housing itself, but the right to demand it.

A transaction is considered more dangerous when the contractor and developer enter into a preliminary purchase and sale agreement. A contractor that has not yet fulfilled its obligations can quickly find a buyer and enter into a contractual agreement with him. When problems arise, the ordinary buyer turns out to be the last one.

Required documents

If you nevertheless decide to purchase square meters from a contractor, you will not need many documents. To formalize the contract, the buyer’s passport is sufficient. If he is married, you also need to prepare a notarized consent to the transaction from your spouse.

As for the state registration of the transfer of rights, it will require the provision of the following documents:

1. Receipt for payment of state duty (in most cases, these costs are borne by the buyer). The cost of such a service is 2,000 rubles. You can apply through the MFC.
2. A statement that the authorized bodies carry out registration.
3. An assignment agreement concluded between the buyer and the contractor.
4. The initial agreement that was concluded between the contractor and the builders.
5. A certificate stating that the contractor has no debts to the developer. Otherwise, the debt may be transferred to the buyer.

Another document that may be needed is written permission from the builders to transfer rights, or notification of such a transfer. This paper is not mandatory, but builders often include a corresponding condition in the text of the contract.

Possible risks

The main advantage of buying a home from a contractor is the affordable price. If all goes well, the buyer can save up to 15% of the market value on such a transaction. But before committing it, it is necessary to assess the risks, which are as follows:

1. The construction company may go bankrupt before the project is completed. The buyer is left without an apartment, and terminating the agreement and returning the money is not an easy matter.
2. There is a possibility that the developer will file claims against the contractor and terminate the LDU. The result could be a lengthy legal battle. If the contractor is unable to compensate for losses, bankruptcy proceedings will follow. In addition, some contracting companies simply disappear in an unknown direction without waiting for a trial.
3. There is a risk that the documents will be out of order: a construction permit, papers for a land plot.

Another example is that a child-care center is not registered with Rosreestr, although this is required by law. If the agreement is not registered, double sales and other fraudulent schemes are possible.

Tax deduction and other features

The big disadvantage of concluding such transactions is that it will most likely not be possible to make a tax deduction. When the real estate does not become the property of the contractor, he acts as a kind of intermediary. In this case, an offset scheme is used, which makes it impossible to return income taxes.

If the future owner purchased housing by transfer, bypassing the developer, the latter does not have the right to issue documents to the final buyer about expenses for the tax authority. Nothing can be done about this, because the agreement was concluded with the contractor.

The only thing that builders can do is provide a certificate stating that the square meters have been fully paid for. But this paper is unlikely to satisfy government officials. Of course, the price of housing purchased from contractors is already lower, but you shouldn’t count on a pleasant bonus in the form of a tax deduction.

Problems may also arise for those who purchase real estate with a mortgage. To get a loan, you need to bring to the bank a complete package of papers for housing under construction. This will require the participation of a contracting company, which will act as an intermediary between the builders and the future home owner. As a rule, such transactions drag on for a long time, and contractors are not at all interested in this.

A few rules for a safe transaction

Although it is problematic to buy an apartment without any risk, you can reduce the likelihood of being among the victims. Buyers who enter into a transaction without an agency or the assistance of an experienced lawyer should be especially careful. There are several recommendations that will help you avoid losses and get the long-awaited housing:

1. It is necessary to obtain as much information as possible about the developer. It is worth finding out all the details regarding his activities: how long he has been working, how many objects he has built, how many lawsuits he has participated in. Of course, investors should also be wary of complaints against the developer, if there are any.
2. The contractor's reputation should also arouse keen interest. If possible, it is advisable to find its financial statements on the Internet. You definitely need to ask what explains the low price of real estate and why the contractor is in such a hurry to part with it. It is important for the buyer to understand whether the contractor is able to fulfill his obligations to the builders or whether this is not part of his plans.
3. Don’t be shy about studying each document thoroughly. This includes the initial contract, the assignment agreement, and the paperwork for the construction of the building. It is also necessary to pay attention to the contract agreement on the basis of which the contractor performs the work. From it you can find out how much of the services the contractor has already provided, and how much remains to be done.
4. It is necessary to request from the contracting company a certificate of the full cost of the residential premises and that payment for it was made (if any). Another useful document is a certificate confirming the offset of the cost of housing with acts of work performed by the contractor. A conscientious counterparty will not refuse to provide such documentation. This is especially important for the buyer: scam contractors often use schemes that allow them to transfer the debt to the final buyer.

Providing information from the Unified State Register of Legal Entities/Unified State Register of Individual Entrepreneurs - egrul.nalog.ru

Tax check

Check the contractor's debts - fssprus.ru

Federal Bailiff Service

Check for bankruptcy and arbitration processes - kad.arbitr.ru

Arbitration processes

Search by court cases (select the district court where the company is building real estate) - mos-gorsud.ru

Moscow court, search for court cases

In addition, you need to remember that both parties participate in drawing up the contract. If the buyer is confused by some of his points, he has the right to insist on changes.

Before you buy a finished or unfinished home from a contractor, you should carefully study all the nuances. There are many scams in the real estate market, and inattention can be very costly.

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How to buy an apartment from a contractor? Features and rules of the transaction

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What's the point?

Contractor - a company that works under a contract , for example, is engaged in glazing, landscaping, finishing or construction and installation work. In other words, this is the executor of the customer’s instructions, who was hired for the construction period.

The contractor receives apartments in a house under construction or commissioned from the developer as payment for his services performed, that is, through barter. To do this, an agreement on shared participation in construction (DDU) is concluded between the parties, or apartments are simply reserved for the contractor (without drawing up an agreement).

Features of purchasing housing from a contracting company:

1. The contractor enters into an equity participation agreement (EPA) with the developer or agrees to book apartments in exchange for services provided.
2. The transfer of rights to individual buyers occurs as a result of the assignment of rights or the conclusion of a DDU agreement with the developer.
3. The transfer of rights under an agreement or the conclusion of a DDU agreement is subject to state registration.

An assignment agreement with an individual buyer is not much different from a regular transaction of assignment of rights from one investor to another, which occurs all the time in the market.

But there is one very important feature: if the construction is not completed, that is, if the contractor’s obligations are not fulfilled, then the rights to the apartments can be revoked at any time , since the DDU agreement can be terminated.

In this case, the termination of the assignment agreement in court is only a matter of time, which, of course, cannot cause much joy among bona fide buyers of square meters. If the apartments were simply reserved for the contractor, then the buyer enters into a remote control agreement directly with the developer, but possibly at a more attractive price (due to a discount to the contractor). In this case, the risks are minimal.

Important : the agreement with the contractor should not be confused with the DDU and the assignment agreement with the buyer (individual investor). If a realtor says that it is “practically the same” and the buyer will not have any risks, then you should not trust him to complete the transaction.

The benefits of buying a home from a contractor can be quite significant.:

1. Apartments at the zero stage (if you chose them at this stage) are much cheaper than at the end of construction.
2. The contractor himself can give a discount if he urgently needs funds. By the way, he himself can also get future square meters at a completely different price than an ordinary buyer on the street. Prices may be lower for contractors.

If the contracting organization is completely financially stable, has been working in the market for many years and has no intention of leaving the market, then there is nothing wrong with buying housing from it. On the contrary, it can be a very successful deal.

But there are other situations. The contractor can sue the developer or be in a state of conflict and during this period “throw away” the apartments transferred to him to the buyers. Trusting investors may not be aware of the risks involved.

The result of such gullibility: the rights to the apartment are disputed by the developer. One day, buyers may receive a court decision that the DDU agreement is terminated due to the fact that the contractor violated its obligations and, accordingly, the assignment of rights to another person is invalidated. In this case, the buyer has the right to demand his money from the contractor. Judicially. How long this process will take depends on the solvency of the contracting company.

• Let us add that this risk is an unnecessary addition to the existing ones, because the house may not be completed due to lack of funds, the developer may disappear with the money, or the construction may be mothballed for a long period of time.
• Advantages: low price for apartments.
• Disadvantages: high risk of losing rights to housing under construction.

What are the risks?

Attention! The main risk of purchasing housing from a contractor is that the organization may be declared bankrupt before the completion of construction and commissioning of the house.

This means that the company will not have time to fulfill its obligations to the customer, and, therefore, he may demand the return of the rights to the transferred square meters.

There is also a possible risk of failure to fulfill the contractor's obligations to the developer , which was mentioned above. As a result, the DDU agreement may be terminated, and the buyer will be forced to sue the contractor.

If he does not have the money to return, then a bankruptcy procedure will follow, which may drag on for a long time. A situation is possible when the contractor simply liquidates and disappears from the market, and the buyer is left with nothing.

To minimize risks, you need to carefully prepare for buying an apartment. First, find out the history of the developer himself:

• how many projects he brought to the final stage;
• whether there are any complaints from investors about him;
• whether there were lawsuits in connection with poor-quality construction or failure to fulfill obligations on time.

After this, you need to study all the available information about the contractor himself . Try to find his financial report on the Internet, find out why the apartments are being sold, for example, at a reduced price and what is the reason for such a rush. The main goal of the buyer of an unfinished apartment is to find out whether the contractor will be able to fulfill his obligations to the end or there are risks that this will not happen.

How to buy - all the nuances

1. We study the offer, history, reputation of the contractor and developer.
2. We check whether the DDU is valid, whether it is registered in Rosreestr, whether there are any encumbrances or other restrictions on the assignment of rights to other persons.
3. We conclude an assignment agreement (if the apartment is not yet completed) or a purchase and sale agreement, if it is completed.
4. We register an assignment agreement or transfer of ownership rights in the Federal Service for State Registration, Cadastre and Cartography (Rosreestr).
5. We sign the acceptance certificate (if the apartment is completed).

A dangerous deal is when a developer enters into a preliminary sales agreement with a contractor. On this basis, a contractor who has not yet fulfilled his obligations can sign a counter-purchase agreement with any buyer brought to him by the real estate agency. If there is a breakdown in relations with the developer, then the individual investor will be the last one.

1. Before buying a home from a contractor, you need to ask him for copies of documents confirming its official registration, as well as the DDU agreement itself, which must be registered with Rosreestr.
2. The developer needs to check the building permit and documents for the land plot on which the house will be installed. The developer must be checked no less carefully than the contractor.
3. It would be a good idea to study the contract itself; if the construction has not yet been completed, take a copy of it from the company. As a rule, between the contractor and the developer, a stage-by-stage offset of the cost of work performed is carried out against payment for apartments. You can see how much has already been done and how much remains to be done.
4. Be sure to also request a certificate of full payment of the cost of the apartment (if any) and a certificate of offset of the cost of the apartment with the relevant Work Certificates. If the contractor is conscientious, then there should be no problems in obtaining these documents.

1. To conclude a transaction, you need the buyer’s passport and the written consent of his wife (husband) to the transaction.
2. If the housing is completed, then a purchase and sale agreement will be drawn up, and then an acceptance certificate. To do this, you will need a certificate confirming the absence of registered persons in the finished apartment, as well as a receipt confirming the absence of debts on utility bills. The notary will also ask you to provide an extract from the register stating that the apartment is not encumbered (not pledged to the bank, etc.)
3. To conclude an assignment agreement, you will need a DDU and a document confirming payment for the apartment. The absence of a lien or lien on the property will also be checked. If the DDU provides for a requirement for written notification to the developer before the transfer of rights, then you will need to send a registered letter to the construction organization.

When concluding a purchase and sale agreement, you need to pay attention to the procedure and timing of payments:

• dates of payment of the advance and the remaining amount;
• terms of transfer of the apartment;
• liability of the seller for failure to fulfill obligations (fines, penalties, etc.).

The contract must indicate the exact address of the apartment, the amount under the contract, as well as the deadline for registering the transfer of ownership rights in Rosreestr.

If you are drawing up an assignment agreement, then you need to pay attention to the subject of the agreement, the obligations of the authorized and obligated person, the basis for the requirement and its content.

Formally, the buyer does not have ownership rights (the house has not yet been completed), but the right of claim is transferred to him, which he will present as soon as the apartments are handed over to all shareholders.

When drawing up an agreement, the developer must be notified in writing that the rights have been assigned to another person after the transaction or before, if this is provided for in the DDU.

How is registration of rights carried out?

At the same time it is also provided:

• certificate of payment under the contract;
• written consent of the developer to the assignment (if required);
• agreement of shared participation in construction.

The transfer of ownership rights when drawing up a purchase and sale agreement also involves registration. But in this case, the state duty is much higher - 2 thousand rubles. To register, you will also need to provide a bill of sale and proof of payment. Registration periods range from 3 to 7 days.

Important : It is considered safer to purchase a ready-made apartment from a contractor, that is, after the house has been put into operation. In this case, the buyer does not risk anything - the housing is already ready, the contractor’s obligations have been fulfilled, and challenging the transfer of ownership rights will be extremely problematic.

The specialist talks about buying an apartment from a contractor and the risks of this transaction:

Apartments on the primary market can be purchased not only from the developer, but also from his contractor. But in the second case, there are risks of termination of the assignment agreement if the company is unable to fulfill its obligations or is declared bankrupt.

To protect yourself, you need to carefully study the business reputation of the seller. It is also advisable to buy housing after putting the house into operation, drawing up not an assignment agreement, but a deed of sale. Otherwise, if the contractor turns out to be dishonest, a situation may arise when the assignment agreement will be terminated in court.

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Features of buying an apartment in a new building from a contractor. What to check and how to complete the transaction?

A profitable investment is the purchase of real estate in a house under construction. The greatest savings are possible when purchasing at the initial stage of construction.

The sale of apartments is carried out by developers, investors and contractors. By buying housing from the latter, you can save 10% or more of the cost. In this article we will look at the advantages and possible risks of purchasing housing from contractors.

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

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Features of purchasing housing in a new building

A contractor is a company working under a contract . This company carries out the customer’s instructions during the construction of the house, and as payment for its services receives apartments in the house under construction from the developer. The parties enter into an agreement for shared participation in construction, or certain apartments without an agreement are reserved for the contractor.

The resulting apartments are most often sold in advance in order to be able to pay workers, purchase materials, etc. If there is no such need, the sale of real estate is carried out already at the stage of handing over the house.

In terms of its legal status , the contractor differs from the developer, therefore he cannot re-register a shared construction agreement for the buyer ; the assignment of property rights (Article 388 of the Civil Code of the Russian Federation) or the execution of a purchase and sale agreement (Articles 549-558 of the Civil Code of the Russian Federation) are within his competence.

The assignment of rights to claim an apartment is a procedure regulated by law.

The advantages of buying an apartment through a contractor are not many, but they are quite significant. Since the contractor is a company engaged in construction work, it sets a minimum price for the sale of apartments . Typically, you can save 5-10 percent.

If the contractor’s financial situation is difficult, and the developer pays for the work exclusively in apartments, the savings on the purchase will be even greater, since the contractor needs to sell the property as quickly as possible.

Risks when buying an apartment from a contractor

If the contractor has already received apartments as payment for work performed in accordance with Federal Law 214 and sells them under an assignment agreement, the buyer’s risks are no greater than when purchasing an apartment from a developer.

Difficulties may arise in a situation when the developer and the contractor company enter into an investment agreement, which provides for payment for services not yet performed in apartments. The sale of such real estate is carried out at a price significantly lower than the market price , however, the obligations to the developer have not yet been fulfilled.

In most cases, the transaction takes place at the stage of building a house, therefore, the buyer does not acquire the apartment itself, but the right to receive it after the house is put into operation.

The main risks in this type of transaction include:

1. Failure by the contractor to fulfill his obligations leads to termination of the agreement with the developer. Consequently, the contractor will not receive the property, even though he has already sold it. In this case, even in court, the buyer will not be able to obtain the purchased property or return his money.
2. The contractor may perform less work or use less materials during construction and some apartments will not be transferred to him, since the debt to him will be less. There is a high probability of purchasing an apartment that does not exist.

You can avoid risks if:

• study the seller’s DDU;
• conclude a tripartite agreement;
• involve lawyers and specialists in concluding a transaction who will help take into account all the nuances and assess the risks;
• study the developer’s documentation;
• it is better to choose contractors who have been on the market for a long time and have a stable financial position (for this you will need to carefully study the documentation and the construction market).

Careful control is necessary before making a transaction and at the time of its execution.

We talked in detail about what other risks a buyer may face when purchasing an apartment in a new building here.

As mentioned above, the main secret of a successful deal is an agreement with a successful contractor . You should carefully check all possible information about it: reviews, complaints, facts of litigation, financial reports.

1. Request copies of documents that confirm that the contractor is officially registered. In addition, the DDU must be noted in Rosreestr.
2. Request copies of the contract if construction work has not yet been completed. In this document you can see what amount of work has already been done and what remains to be done by the contractor. This way the buyer can assess the risks.
3. Take a document confirming full payment of the cost of housing (if payment has already been made) and a document confirming payment for the contractor’s work with an apartment. An honest contractor has nothing to hide and will be able to provide documents.
4. Make sure that the agreement concluded with the contractor contains a clause regarding the developer’s consent to the transfer of real estate.

Purchasing methods

Some features when completing a transaction with a contractor are due to the fact that the buyer, purchasing real estate during the construction stage, does not receive the housing itself, but the right to claim it from the developer.

Ways to purchase apartments:

1. Assignment agreement (Article 388 of the Civil Code of the Russian Federation) must be drawn up in writing and contain an indication of the concluded transaction with the developer and a list of conditions that were determined under it.

   This agreement is signed until the house is put into operation and is valid unless prohibited by the main agreement.

2. An assignment of rights agreement can be concluded if, during the construction process, large contractors involved subcontractors with whom settlement is carried out under an assignment agreement. Subcontractors can sell an apartment by concluding an assignment of rights agreement. The disadvantage of such a transaction is the inability to control and track the “chain” of assignments and fulfillment of obligations.
3. The co-investment agreement is governed by Art. 4 Federal Law No. 39. According to this agreement, the contractor can simultaneously act as an investor who provides its services to the developer as an investment, and in return receives the right to an apartment. In such a situation, a co-investment agreement will be concluded with the future buyer, under which the rights to the apartment will be transferred to him to the extent that they belonged to the contractor.
4. A purchase and sale agreement is the safest way to complete a transaction and is concluded after the house is put into operation. In this case, the contractor has already registered ownership of the property, which will significantly increase its price, but the risks of this type of transaction are minimal.

How to buy - procedure

The transaction is carried out in several stages:

• search for current offers;
• checking the documents of the seller and the developer;
• viewing the facility and infrastructure nearby;
• execution of the contract;
• acceptance of the apartment using the transfer and acceptance certificate;
• registration of property rights in Rosreestr;
• moving and registration in the apartment.

The most important role in the purchase and sale procedure is played by a thorough check of documents.

We provided detailed instructions on purchasing housing in a new building using various methods in a separate article.

Required documents

For citizens who decide to purchase housing in this way, one passport will be enough. For purchases made with mortgage funds, a loan agreement will be required.

The Contractor provides notarized copies of:

• development plan;
• building permits;
• project declaration;
• documents for land, certificates;
• authorizing the sale and originals of constituent documents;
• service agreements;
• document giving the right to sell;
• assignment agreement.

Conclusion of an agreement and registration

To register, you need to write an application and pay a state fee . (For an individual - 2000 rubles, for a legal entity - 22,000 rubles). Registration is carried out within a period of no more than 1 month and after that the agreement comes into force.

How do the parties settle?

The conditions for transferring payment are specified in the contract and are determined by the parties individually. This can be payment in cash at the cash desk, installments, loan agreement, bank transfer, etc.

Will it be possible to get a tax refund?

When purchasing an apartment, in a situation where the contractor has not recorded the property as personal ownership, he is an intermediary and an agreement is concluded with the construction company.

This scheme is a credit scheme, but its disadvantage is that it is impossible to return personal income tax.

The construction company cannot issue a document confirming the buyer’s expenses for the Federal Tax Service , because these documents were drawn up with the contractor.

When purchasing an apartment under an agreement on the assignment of rights of claim, the right to receive a property deduction arises from the moment the apartment acceptance certificate is signed. In this case, a copy of the equity participation agreement on the basis of which the rights of claim were assigned is provided to the tax authority.

This article discussed ways to purchase housing from a contractor, the main nuances of this type of transaction, as well as information on minimizing risks in the purchase and sale process. Careful study of all the details of the transaction and documents will allow you to buy housing cheaper than market value and not fall into the hands of scammers.

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Buying an apartment from a contractor

One of the most profitable options for purchasing apartments in new buildings are offers from contractors .

Since they set themselves the goal of selling housing as quickly as possible, they set its price significantly lower than that of developers and investors.

However, such transactions are associated with much greater risks , because contractors do not provide any guarantees.

Depending on the circumstances, other legal schemes are also acceptable - for example, purchase and sale and even co-investment .

a subcontractor acts as a seller or if the contracting organization itself acquired the rights to the apartment by assignment, then the sale is formalized by an assignment of rights .

Risks when buying an apartment from a contractor

Along with quite favorable offers for the purchase of new buildings from developers and investors, apartment options from contractors have increasingly begun to appear on the primary real estate market. Contracting organizations do not specialize in this and, most often, receive construction projects as payment for services provided under offset schemes.

Real estate from contractors is 10–15% cheaper than offers from investors and construction companies, which is due to the seller’s desire to receive funds as quickly as possible.

Despite the significant advantage for the buyer, such schemes are associated with certain risks . Let's look at them in more detail:

• Since payments to contractors are made at the construction stage, they do not receive the apartments themselves, but the rights to receive them after the building is put into operation. Thus, contracting organizations, when selling housing rights to citizens, are responsible only for the legality of the documents they submit - they do not provide any guarantees for receiving real estate .
• Since the DDU concluded between the contractor and the developer is subject to mandatory state registration with the Rosreestr authorities, the transfer of rights from the contractor to the buyer also requires such registration (Article 17 of Federal Law No. 214 of December 30, 2004). Without state registration, the assignment of rights is invalid .
• If the contractor goes bankrupt before he fulfills his obligations to the developer, it will be extremely difficult to get his money back.

Example

The contracting organization StroySam LLC entered into an assignment agreement with Petrov, under which it assigned in his favor the rights to an apartment in a building under construction. The rights to the specified real estate arose with StroySam under the agreement concluded with the developer OJSC SU-100, according to which the contractor was obliged to carry out construction work.

Subsequently, for regular violations of its obligations, SU-100 unilaterally terminated the agreement with the contractor, which deprived StroySam of the already assigned rights to the apartments, and, consequently, the buyer also lost them.

Soon after this, the contractor was declared bankrupt, which prevented Petrov from collecting from him the money already paid for the property.

Scheme for purchasing an apartment from a contractor

• When deciding to purchase an apartment from a contractor, buyers must minimize the risks they face , which is only possible through a thorough approach to searching for offers and systematizing their subsequent actions.
• When analyzing proposals from contractors, the more important factor that should influence the choice of housing will not be the “seller” himself, but the reputation of the developer with whom he cooperates, since the final result will depend on him.
• The DDU concluded between the developer and the contractor may provide for a prohibition on the transfer of rights or its restriction , requiring the payment of a certain fee to the developer.
• To avoid falling for such a “trick”, before purchasing an apartment from a contractor, you must carefully study the initially concluded contract.
• So, when purchasing housing through a contractor, it is recommended to adhere to the following scheme:

• Search for an offer . While choosing a suitable offer, you also need to select a developer. It must be remembered that unreasonably low prices may hide fraud or delays in construction.
• Developer check . Having decided on an apartment, you must adhere to standard recommendations for checking the developer - reviews and reputation on the Internet, time on the market, checking its constituent documents, licenses, building permits, etc.
• Visual inspection . If the housing is in the early stages of construction, then the inspection will be limited to checking the development of infrastructure and compliance with the pace of construction and the plan. If the house has already been built, then the apartment should be inspected and checked for compliance with the project and area.
• Signing the contract . After checking all the documentation and the housing itself, to purchase it you need to conclude an agreement with the contractor, the type of which will depend on the readiness of the housing and the form of legal relations. The document must have a direct reference to the agreement concluded between the contractor and the developer, and the transfer of rights to the buyer must undergo state registration. This stage is not recommended to be completed without legal support .
• Reception of the apartment . After completion of construction and commissioning of the house, the developer must transfer the object to the buyer, which, according to Art. 556 of the Civil Code of the Russian Federation (hereinafter referred to as the Civil Code of the Russian Federation), is formalized by a transfer deed. After this, the new owner can register his property rights in Rosreestr.

How to properly formalize a deal when buying an apartment from a contractor

The specificity of the legal relationship between the buyer and the contractor is that if the transaction is concluded at the construction stage, the organization transfers to the future owner not the housing itself, but the rights to receive it . This determines some features when completing a transaction.

Regardless of what agreement is used to formalize the purchase of an apartment from a contractor, if the housing has not yet been completed, the assignment of rights under it is subject to mandatory state registration (Article 17 of Federal Law No. 214).

According to paragraphs. 30 clause 1 art. 333.33 of the Tax Code of the Russian Federation, the state duty for state registration of the assignment of rights of claim under the DDU is 350 rubles.

Let's consider the most common options for processing transactions for the purchase of housing with contractors:

• Assignment agreement . An agreement for the assignment of rights of claim (Article 388 of the Civil Code of the Russian Federation) in favor of the buyer will be valid if the main agreement (for example, DDU) does not prohibit such an assignment. It is drawn up in writing and must contain an indication of the deal initially concluded with the developer and the conditions determined under it. The assignment agreement can be signed only before the house is put into operation - after that, the housing can be sold only by purchase and sale.
• Agreement on assignment of rights . During large-scale construction, general contractors involve smaller organizations - subcontractors, with whom payments are also made by apartments, under an assignment agreement. They, in turn, assign the rights to real estate assigned to them to citizens for a fee. The risk of concluding such an agreement lies in a possible “chain” of such assignments, the fulfillment of obligations under which cannot be traced .
• Co-investment agreement . According to Art. 4 Federal Law No. 39 of February 25, 1999, contractors, under an agreement concluded with the developer, can simultaneously act as investors, providing their services as investments , in return for which they receive rights to apartments. In this case, for their sale, co-investment agreements are concluded, under which the rights to housing are transferred to citizens to the extent that they belonged to the contractor-investor.
• Contract of sale . The safest option is to purchase an apartment from a contractor. Concluding such a transaction is permissible only after the house has been put into operation and the contractor has registered ownership of the housing, which naturally significantly inflates its price.

List of documents

To sign a contract with a contractor for the purchase of an apartment in a new building, citizens will need to provide a minimum package of documents.

The main document required to complete the transaction is a passport.

If you are married, it is desirable to have a notarized consent of the spouse (clause 3 of Article 35 of the Family Code of the Russian Federation) and a marriage certificate.

No other documents are needed directly to conclude the contract. However, subsequent registration of the transfer of rights to the buyer, in addition to the documents already specified, will require the provision of:

• Applications for state registration.
• Receipts for payment of state fees.
• Initially a contract concluded between the developer and the contractor.
• Assignment agreement between the contractor and the buyer.
• Certificates of fulfillment of all obligations of the contractor or agreement on transfer of debt to the buyer.
• The developer’s written consent to the transfer of rights (if provided for in the original agreement) or notification of such a transfer.

Buying an apartment from subcontractors

General contractors and other large contracting structures may involve smaller organizations to perform some tasks, which act as subcontractors .

Payments to them for services provided are also often carried out through the assignment of rights to an apartment under assignment agreements.

To earn money for their work, subcontractors sell the objects transferred to them by assigning rights to them.

In fact, the scheme for purchasing apartments from such organizations is practically no different from purchasing housing from the main contractors and is formalized in similar agreements.

However, the “chain” of assignments between subcontractors can be multiple , which makes it impossible to verify the fulfillment of the obligations of each of them, for which the rights to the apartment were assigned. The risk of such schemes is that if at least one organization from the “chain” fails to fulfill its obligations, the last buyer will be deprived of housing.

Conclusion

When buying an apartment from a contractor, the chance of not getting it is much higher than when buying from developers.

The fact is that, in addition to existing risks, the possibility of obtaining housing is made dependent on the contractor’s fulfillment of its obligations.

However, even if they are fulfilled, the contractor can guarantee the receipt of housing only when selling objects that have already been put into operation. In all other cases, the risk of being left without an apartment is quite high, which, however, explains the low price for them.

Participation of the developer in the assignment of rights