Features of the apartment privatization process in 2021

Concept and functions of privatization

There are many conjectures and myths about the privatization of state and municipal property. And in order to understand what is special about this procedure, it is necessary to first understand what this process is.

Privatization refers to the alienation of property that was previously under the jurisdiction of state or municipal bodies into private hands.

At the same time, the process of transfer of property rights occurs exclusively in the order that was previously established by the state and approved at the highest legislative level.

It is worth noting that all transactions related to privatized property are classified as civil agreements, according to which the parties are defined as the acquirer and the alienator. Based on this, it can be argued that the decision to privatize a specific object will be considered as one of the forms of the owner exercising his powers to freely dispose of property values ​​that are in his ownership.

Advantages and disadvantages

Owned living space provides the following advantages:

1. The rightful owner can perform any actions with his property - sell, give, leave as an inheritance.
2. If a person has a large debt to pay for housing services, the fate of the property is decided by the court.

In the event of a sale at auction, all funds remaining after repayment of debts are given to the former owner. Please note that the sale of living space under the hammer is appointed only if the owner and his family have other housing.

1. The owner has the right to register and discharge any people, unlike social employers.
2. The object can act as collateral for obtaining a loan.

However, freehold real estate does have its drawbacks.

• Firstly, owners have increased maintenance costs. After registration, an individual is obliged to pay property tax annually and invest money in current and major repairs of the house. The right to receive a subsidy for utilities is lost.
• Secondly, privatization is unprofitable for older people, because obligatory heirs will claim their share of square meters. The best solution would be to issue a permanent registration in the name of a relative to whom the pensioner wishes to bequeath the home.

For people who have an apartment in an old building, it makes sense not to rush into privatization.

During resettlement, the authorities will provide one registered person with 36 m², for two – 42 m², for three or more – 16 m² for each registered person.

Priority of legislation on privatization

Privatization issues still cause lively debate and debate. In the early 90s, when this process had just begun, the fundamental points regarding the transfer of ownership were not spelled out, and therefore many properties were sold for next to nothing, which caused huge losses for the country’s economy as a whole. The methods of privatization of state and municipal property that were used at that time often contradicted the basic provisions of the law.

However, over time, the state began to control and regulate this process. For this purpose, special privatization rules were introduced, the application of which became mandatory, and which helped to protect the interests and rights of all participants in the process.

The question of the relationship between civil law norms and current legal acts on privatization is considered especially significant. As practice shows, contradictions often arise between these standards, but the state determines that the priority will be the application of those norms and dogmas that are specified in the privatization acts. Thus, in some situations, the requirements of Article 3 of the Civil Code of the Russian Federation can be ignored.

Thus, the legislator creates conditions under which priority is given to those legal regulations that are mentioned in special legal acts devoted to privatization and its key provisions.

Story

In the 1980s in Great Britain, the Thatcher government privatized the following state corporations and companies: Amersham International (100%), Associated British Ports (100%), British Aerospace (100%), British Gas (100%), British Petroleum (68 .3%), British Telecom (50.2%), Britoil (100%), Cable and Wireless (100%), Enterprise Oil (100%), National Freight Co. (100%), British Airways (100%), International Airradio (100%), British Helicopters (100%), Witch Farm (100%), British Rail (100%), Sealink (100%), British Shipbuilders (100%), British Steel (100%), National Bus (100%), Rover, Jaguar, Rolls-Royce (100%), British Airports (100%), Royal Order (100%). But in the UK, privatization was carried out much more carefully than in the Russian Federation: a separate law was developed for each auction, and all transactions were discussed in parliament. No more than 3-4 companies were sold per year. They tried to place shares of privatized companies among the employees of these companies, including at preferential prices. In cases where the state wanted to maintain control over the company, the institution of the “golden share” was introduced - the right to block changes to the charter of the enterprise [2] (p. 29).

Mass privatization after the collapse of the socialist camp

In the 1990s, after the collapse of the socialist system in the countries of the so-called. The “socialist camp” began a rapid privatization of all sectors of the economy, which had previously been almost 100% state owned. Since 1989, more than 70 thousand state-owned enterprises have been privatized in the countries of Central and Eastern Europe. During that period, this caused mass unemployment, wage cuts, and increased corruption. K: Wikipedia: Articles without sources (type: not specified)[ source not specified 1831 days

].

Even before the collapse of the USSR, a legislative framework for privatization was prepared in Russia. Forced privatization of state property was carried out in 1992-1995. According to the widespread opinion, which is also shared by some Western advisers on reforming the Russian economy, privatization from the very beginning was of a “barbaric” nature and was carried out in the interests of a narrow circle of people.

The main thing that let us down was the colossal gap between the rhetoric of the reformers and their real actions... And, it seems to me, the Russian leadership has surpassed the most fantastic ideas of Marxists about capitalism: they considered that the state’s job is to serve a narrow circle of capitalists, pumping money into their pockets as much money as possible, as quickly as possible. This is not shock therapy. This is a malicious, premeditated, well-thought-out action aimed at large-scale redistribution of wealth in the interests of a narrow circle of people.

— Jeffrey Sachs, one of the developers of the concept of “shock therapy”

... The Novokuznetsk aluminum plant, which had at least a billion dollars worth of assets, was sold for 10 million rubles - the rest later. ... During the privatization process, the Russian budget received less than the Hungarian budget after privatization in this country.

... Only 36 foreigners sat in the holy of holies of Russian privatization - in the offices of the State Property Committee, preparing competitions and closed auctions for themselves. ... What was the cost of the notorious Jonathan Hay alone, an expert advisor to the State Property Committee, for whom I had a report that he was a career intelligence officer for the CIA.

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...30 people have already been killed at the Krasnoyarsk plant alone. Three of them were my friends. They shot every block.

(Question: what would have happened if you had held on
[to the position of head of the State Property Committee]
?

... no loans-for-shares auctions. Norilsk Nickel is pure theft. YUKOS is the same... In Alaska, for example, there is a fund for future generations using funds from oil sales, and each resident of Alaska receives about 7 thousand dollars from there into their account, a family of four automatically receives 30 thousand dollars for giving the right to develop an oil field . State oil in Norway.

— Vladimir Pavlovich Polevanov, Chairman of the Russian State Committee for State Property Management 1994-1995.[4] With. 193-201.

“With the global spread of neoliberalism, the wave of privatization is leading the world economy to a dead end,” notes Li Shenming, Vice President of AON of the People’s Republic of China, in his article (September 2012)[5].

The beginning of domestic privatization

The start of the privatization procedure in our country was given at the beginning of 1990, but it entered into full force after the collapse of the USSR into several sovereign states. It is worth noting that different experts assess the results of this procedure differently. However, it is impossible not to notice both the positive and negative characteristics of the privatization process.

Among the factors that had a negative impact on the development of the Russian economy at that time are:

• ignoring the interests of the constituent entities of the Russian Federation and not taking into account the specifics of the implementation of the privatization process in a particular subject;
• the government set the task of carrying out a significant amount of privatization of national economic assets as quickly as possible, which led to the creation of conditions for the development of corruption schemes;
• the method of transferring property was chosen free of charge, or for a nominal fee. Because of this, many important objects were transferred into private hands and subsequently destroyed;
• The privatization of industrial facilities was a priority, and therefore many citizens could not register ownership of their residential premises, since authorized officials tried to engage in transactions that were more profitable for them.

The results of the privatization period in our history, according to many, are disappointing. At this time, the economy suffered significant losses, and corruption reached unprecedented levels, which did not have a beneficial effect on the residents of our country.

Who can participate

All persons registered in the apartment on a permanent basis must receive a share of the living space:

• husband wife;
• relatives and ward children, grandchildren;
• elderly parents, grandparents;
• dependents who are unable to make their own decisions;
• other people classified as relatives by court decision.

Participation will be denied to people who:

• do not have the right to privatization by law (incapacitated, have already completed the service, falsified documents);
• deliberately misled the receiving authority;
• did not have time to provide everything needed on time;
• did not pay a deposit for the auction.

Methods of privatization of state and municipal property

The federal law, which examines privatization processes and regulates them, states that the procedure for privatization of state and municipal property is mandatory for all constituent entities of the Russian Federation.

However, this caused additional difficulties, and many rumors and negative assessments appeared in society about the privatization of state and municipal property.

Privatization occurs in several ways, which are regulated by federal law and are mandatory for use in all constituent entities of the Russian Federation:

• when transforming unitary industries, the conditions under which the object is transformed into an OJSC are presented;
• the sale of material resources occurs on a competitive basis;
• state property is transferred into private hands following a public offering;
• state property is contributed to the founding capital of the joint-stock company as a contribution;
• formation of shares of the enterprise, which are distributed among several participants.

Author of the article

What is needed for this

The transfer of rights to property of the Russian Federation or populated areas is carried out through redemption at auction. Trades are held on specialized Internet platforms.

Privatization of an apartment or house is available only to those persons to whom housing has been transferred on the basis of a social tenancy agreement.

• In addition, the future owner is required to obtain consent from everyone registered in the apartment, except children.
• If the apartment is privatized by a family with children under 18 years of age, the consent of the guardianship authorities will be required for its sale.

Documentation

The necessary list for the privatization of an apartment or house.

How it happens

The progress of the privatization process depends on the type of real estate.

1. Privatization of an apartment or house.

First of all, you should notify all relatives registered in the territory and obtain from them notarized consents or refusals to participate in the process.

After collecting the necessary documents, participants or their authorized representatives submit an application to the City Administration.

1. Registration of garage ownership.

The garage privatization process includes one stage - registration in Rosreestr.

The list of documents includes:

• Russian passport;
• a certificate from the chairman stating that the citizen has paid for the share and is a member of the GSK;
• extract from the Unified State Register of Real Estate, or technical and cadastral passports;
• receipt of payment of duty.

Once the application has been reviewed, the next step will be to apply for privatization of the land under construction.

1. Privatization of land.

To register ownership of land, it is necessary to perform actions similar to the privatization of an apartment or house. The package of documents should include an extract from the Unified State Register of Real Estate on the right to a plot with a cadastral plan, an agreement on the transfer for use, as well as personal documents.

1. Privatization of a garden plot in SNT.

The future owner must obtain permission from the Administration, and then approve the cadastral plan in Rosreestr and submit an application for registration of ownership.

To justify their rights to a plot, a citizen must have a document from the local self-government body on the transfer of the property. The application should be accompanied by a declaration for existing buildings (sheds, bathhouses, garden house), as well as an extract with a cadastral plan.

Procedure

The apartment privatization process in stages in 2021 will look like this:

• Stage 1 - obtaining the consent of registered people.

The decision of each family member is recorded in a notarized statement. It is possible to draw up a separate paper for each person registered, as well as collective consent. Children under 14 years of age are required to participate in the process without any confirmation.

If a relative agrees to participate in the process, but cannot be present in person, a power of attorney should be drawn up for him.

• Stage 2 - preparation of papers.

Each document has its own expiration date. For example, extracts from a personal account and the Unified State Register are valid for 1 month , a certificate of family composition is valid for 2 weeks .

• Stage 3 - submitting an application.

The future owner applies to the relevant authority, fills out an application in the prescribed form, attaches a package of documents and notarized decisions of other persons.

Before this stage, you should pay off debts for utility bills, double-check the expiration date of certificates, the presence of consents and refusals of participation or powers of attorney.

With the prepared package and application, you must go to the territorial department involved in privatization.

• Stage 4 - conclusion of the contract.

Within 2 months, the documents are transferred to the Housing Policy Committee, where experts render a verdict and draw up a form of agreement.

All persons involved will receive written notice.

Attendance for signing is strictly required, with the exception of persons for whom a power of attorney has been issued.

After some time, the finished duplicate can be picked up at the department where people applied at stage 2.

• Stage 5 - registration of rights in Rosreestr.

The last procedure is the fixation of property rights.

Pros and cons of privatization of the local area of ​​low-rise apartment buildings? How long does it take to privatize an apartment through the MFC? Find out here.

The procedure for privatization of housing under a social tenancy agreement can be viewed at the link.
There are 5 registration options:

• at the service branch;
• with the help of a field employee (calling a courier costs about 2,000 rubles );
• postal delivery of certified copies;
• through the MFC;
• on the official page of Rosreestr or the public services portal with electronic documents attached.

As of 2021, the Certificate of Ownership has been canceled and is no longer issued.

Methods

Before registration, the citizen independently chooses the method of registering rights:

1. Sole ownership is allowed if a person is registered in the apartment or owns the land alone, or his cohabitants have renounced their rights to the share.
2. Dividing an object into shares. The future owners agree on what share to assign to each of them and draw up the documents together.
3. Joint ownership. In this case, shares are not distributed. During partition, each family member is assigned a share according to the social norm. Used to transfer rights to families with minor children.
4. Common shared ownership. The entire object is divided equally among each participant.

The necessary conditions

The right to free privatization is given only once.

Exceptions to the rules are persons under 18 years of age.

They have the right to enter the list of participants once with their parents or guardians, and the second time to independently use their right, but for this they need to cancel the previous decision in court.

You can register a plot of land in your name for free if:

• the citizen rented a plot for building a house or business activity before 2001;
• the house standing on the territory has already been registered as the property, and the plot under it is in the status of inherited possession or permanent use;
• The land is included in the territory of a gardening and garage cooperative.

Before starting the process, you must obtain permission from the authorities.

The request processing time is about 2-3 months .

Is it possible to re-privatize a land plot? How to cancel the privatization of an apartment? Find out here.

To participate in the auction, you must deposit the amount specified by the seller, which will be included in the final price if the buyer wins the auction, or will be returned back to the account if he loses.