Purchase of land

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Published: December 13, 2016

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The purchase and sale of a land plot always looks like a rather complicated procedure due to the need to prepare a fairly large number of documents that must accompany the entire transaction.

However, if you do not attend to the issue of preparing the entire necessary package, at one point you may simply find yourself out of work, since the deal will be refused, and the desired land plot may simply “float away” to another buyer.

How exactly should you prepare for a deal so as not to lose in such a profitable investment?

• What title documents for the site should you stock up on?
• What will the seller need to prepare?
• What the buyer needs to prepare
• What other documents may be needed
• What you need to prepare to register a transaction

What title documents for the site should you stock up on?

In accordance with modern current legislation, any transactions with real estate on the territory of the Russian Federation are possible only if each property has its own individual cadastral passport.

It is not so much physical presence that is important

This document (it is produced in ordinary paper form and can be lost over time), as much as the contents of such a document, namely information about the assigned personal cadastral number, according to which, among other things, the position in the structure of real estate categories of a particular object is determined.

In addition to determining whether a property belongs to a particular category, the cadastral number allows one to determine the owners of a building, house or land, as well as the possible presence of encumbrances.

That is, the cadastral passport, together with the cadastral number included in it, can fully be considered one of the title documents.

Another such document will be a certificate of ownership..

In general, when building a hierarchy of all actions necessary to complete any transactions, the certificate of ownership must be placed in second place after the cadastral passport (because in this document, when describing any property, its cadastral number and the date of its receipt are indicated).

It is on the basis of a certificate of ownership that all transactions with real estate are carried out, since it is this that can confirm the competence of their implementation.

The issuance of a certificate of ownership is carried out on the basis of documents confirming the legality of the transfer of ownership from one property owner to another (it does not matter at all how the property was transferred - by gift or sale or by entering into inheritance rights).

That is, when completing any real estate transaction (in a particular case, with a land plot), in addition to the cadastral passport and certificate of ownership, you will also need to provide those documents on the basis of which the certificate was issued.

Payment upon purchase of land

• The seller may change his mind about selling the plot before or after signing the contract or even after accepting payment;
• After transferring the deposit or the full amount, the seller may “get lost” with the money, and the matter will never get to the point of re-registration of the plot in Rosreestr.
• The seller may simply become seriously ill or die, leaving the buyer without a plot and without his money.

1. All payments are made by cashless transfer from the payer’s bank account to the recipient’s bank account, that is, there is no need to rent a safe deposit box from the bank, receive cash, recalculate it, or check for authenticity.
2. The risk of losing money for the buyer is reduced to zero (unlike using a safe deposit box), since no one can withdraw funds from his bank account against the will of the buyer himself.
3. For the seller, in turn, there is a full guarantee of receiving funds from the buyer after the transfer of the apartment (other real estate).
4. After receiving the money, the seller has a choice: transfer his money to an account in another bank, or withdraw it in cash.
5. If the transaction has not been registered, the bank has an unconditional obligation to transfer the money to the buyer back to his current account (make a refund).
6. The cost of a letter of credit is comparable to the cost of counting banknotes and renting a bank safe.
7. There is no need to count and check banknotes for authenticity. The bank does this at its own expense.
8. In addition, it must be taken into account that the bank, in the event of an unjustified transfer of money, bears property liability to the payer in accordance with Russian legislation (compensates for losses).

What will the seller need to prepare?

Speaking about the documents that the seller will have to provide at the time of the transaction, it should be noted that their list is quite small, but their preparation will take quite a lot of time.

Thus, the seller (if it is a legal or natural person not related to state or municipal authorities) will need to provide to complete the transaction:

• Certificate of ownership of a specific plot along with documents confirming the legality of obtaining such a document;
• Cadastral passport and site plan (you can get them from Rosreestr and make and certify their copies there);
• Documents confirming the absence of any encumbrances on the site, as well as debts on it (for example, to the tax authorities);
• The spouse’s permission to carry out the transaction in a notarized form (even if we are talking about a plot acquired before the official marriage);
• In a situation where the interests of minor family members (the seller’s own children or adopted children) may be affected during the transaction, it will be necessary to have an appropriately issued permission from the guardianship and trusteeship authorities to conclude a purchase and sale agreement for a particular land plot;
• Refusal of administrative entities and other persons having the right of first refusal to purchase a plot of such their right.

If all documents are prepared correctly and in full, and the acquiring party was also able to meet these requirements, the moment comes for re-registration of ownership.

Buying and selling a garage through the MFC

Some sellers deliberately lower the actual price in order to pay less tax. It is not recommended to deceive the Federal Tax Service. Significant discrepancies between the market value and the value specified in the contract will lead to an audit. If auditors find a violation, you will be fined.

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All payments are borne by the seller. Taxation applies only to those owners who took ownership less than three years before the date of sale. The amount is 13% and is equal to the personal income tax rate. persons

What the buyer needs to prepare

The buyer, as well as the seller, in order to conclude a purchase and sale agreement will need to prepare a number of documents, which will subsequently be needed both when concluding a transaction and when registering the transfer of ownership of the plot.

For such documents, in addition to the original passport and its certified copy, you will need:

• Application for a transaction (issued in case of purchase of a land plot from the state);
• Cadastral documents (it will also be necessary to provide them to the buyer if the purchase is carried out from the state);
• A certificate confirming the right of priority purchase of land (in case of belonging to preferential categories of citizens), or other documents that can confirm this right (for example, a previously concluded lease agreement for the land plot being sold or a certificate of ownership of a capital structure located on the site);
• Documents that can confirm the buyer’s solvency (if we are talking about settlements using maternity capital or a bank loan); You will also need a notarized consent of the spouse to carry out the transaction;
• And if the transaction affects the interests of minor family members - as in the case of the seller - permission from the guardianship and trusteeship authorities will be required.

After all the documents have been prepared, the stage of checking them begins, as well as developing the text of the contract.

All this is given no more than thirty days from the date of submission of all necessary materials.

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When selling land, when money is transferred from a notary or to the MFC

• Only a written form of agreement is allowed, and its notarization is required only when selling shares of a plot (the parties are given the right to execute any land agreement through a notary, but this condition is not mandatory);
• the text of the agreement must provide for mandatory conditions - the subject of the transaction (a specific land plot), as well as a condition on its value;
• the contract can be concluded directly by the seller and the buyer, or by their representatives by power of attorney (the power of attorney is subject to mandatory certification at a notary office).

In this case, the application form must indicate not only a request to register the agreement, but also to carry out cadastral registration of the land. Currently, the Tax Code of the Russian Federation provides for the state duty for registration actions in the amount of 2021 rubles. To complete the documents, you will need to submit the original payment order. A thorough study of the issue does not always guarantee a positive outcome. On our website you can get the most detailed consultation on your issue from our lawyers for free through an online form or by phone in Moscow (+7-499-350-97-04) and St. Petersburg (+7-812-309-87 -91). Where to go Where do they formalize the sale of a land plot? Currently, registration actions with real estate objects are carried out according to the rules provided for by Federal Law No. 218-FZ.

What other documents may be needed

In fact, when answering this question, it is necessary to take into account what kind of land we are talking about selling - for individual housing construction, running a personal subsidiary plot or organizing peasant farming production.

It is precisely belonging to such categories that determines what other

documents may be needed.

Thus, in the case of a transaction with a plot intended for individual housing construction, an agreed upon design of the house and the utility networks connected to it may be required. In addition, documents may be required confirming the further use of the site specifically for specific purposes (that individual housing construction will be carried out on this site, and not an apartment building will be erected).

In addition, when concluding a purchase and sale agreement, if the acquisition is carried out using maternity capital funds, you will need to provide a certificate from the Pension Fund of the Russian Federation stating that the funds will soon be sent to the seller as fulfillment of its obligations to the buyer.

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