Is it necessary to privatize an apartment purchased with a mortgage?

Citizens often contact the Chistye Prudy Academy of Sciences with questions about privatization and mortgage lending. How to privatize an apartment with a mortgage and is it necessary to do it at all? If an apartment purchased with a mortgage in a new building, does it need to be privatized? We will answer these and other equally pressing questions:

Who is the owner of the mortgaged apartment?
What is privatization and is it necessary at all?
What is it like, an apartment bought with a mortgage?
Is it necessary to privatize housing with a military mortgage?
How to privatize a mortgaged apartment in a new building?

Who owns a non-privatized apartment?

The owner of non-privatized housing is the state. Citizens living in an apartment under a social tenancy agreement have the right to contact the municipality and privatize their housing. But if an apartment is purchased with a mortgage, then nothing needs to be privatized.

In the early 90s, the process of privatization of state property, including real estate, began in Russia. Then, the apartments in which they lived became the private property of citizens. But in 2021, changes occurred in the legislation of the Russian Federation, which recognized privatization as unlimited. Therefore, some people privatize housing, while others prefer to live in municipal housing. But this applies to those who already live in their own housing. What should those people who bought an apartment with a mortgage do?

If you bought an apartment with a mortgage on the secondary market, and it is already registered with Rosreestr, you have in your hands a stamped extract from the Unified State Register of Real Estate. It clearly states that you are the owner of a particular property. This means that your apartment does not need any privatization.

In the Russian Federation, according to the law, it is impossible to buy a municipal non-privatized apartment. If a citizen has entered into a purchase and sale agreement for housing, then it is automatically considered privatized. There is no need to do anything with the apartment anymore. You can privatize apartments that are only owned by the state, and citizens live in them on the basis of a social tenancy agreement.

Is it possible to make a will: what the law says

According to Part 3 of the Civil Code of the Russian Federation, inheritance of an apartment or other property is allowed if it belonged to the deceased by right of ownership. Accordingly, having registered the rights to the mortgaged property, the borrower has the right to draw up a will and determine the procedure for the heirs to receive housing. The bank's consent to carry out such a transaction is not required.

There is an important rule to consider that relates to the outstanding obligations of the deceased. After the death of the testator, all his debts are transferred to the persons who submitted the application and decided to enter into the inheritance. It is impossible to refuse to accept obligations while receiving property at the same time. Therefore, the bank will be able to legally demand repayment of the mortgage loan from the heirs.

What apartments can be bequeathed?

The law does not provide for any restrictions on the inheritance of real estate. The only requirement must be met - the ownership of the deceased must be registered for the apartment. This fact is confirmed by an extract from the Unified State Register of Real Estate, which the notary will request. The heirs themselves can also submit a request.

In addition to mortgaged apartments, other types of objects can be included in the contents of the will. For example, it is allowed to transfer inheritance rights to housing received through privatization, purchased on the secondary market at the expense of one’s own funds. You cannot bequeath only a municipal apartment allocated under a social security agreement. hiring

Is it possible to bequeath part of an apartment?

If a shared mortgage was issued on the property, you can draw up a testamentary form only for your share. An exception is a joint will of spouses, when they simultaneously dispose of rights in the event of their death. When drawing up a will, the owner has the right:

divide rights to an object among several recipients, i.e. allocate an equal or different share to each of them;
indicate in the testamentary form only the part of the premises that the heirs will receive (all other property will be inherited by law);
provide for the preservation of the right of residence for individuals who will not receive rights by inheritance.

To make a will, the principle of secrecy and freedom of expression of the testator must be observed. While the owner is alive, no one has the right to find out to whom and under what conditions he transferred the apartment. Violation of this condition will entail the invalidity of the will.

There is no need to indicate in the testamentary form that the apartment has a mortgage. This fact will be confirmed automatically when conducting inheritance business.

Why is privatization needed?

Privatization is the transfer of municipal housing into the ownership of citizens free of charge. Such transfer belongs only to the real estate in which citizens live on the basis of a social tenancy agreement. The privatization process is carried out to obtain the opportunity to carry out all possible transactions with real estate - donate, sell, bequeath, mortgage. Article 2 of the Federal Legislation of Russia on privatization states: social tenants receive occupied residential premises free of charge. This right applies only to Russian citizens who have the right to use municipal premises.

Is it necessary to privatize an apartment purchased in a new building?

Dear lawyers, we need your advice! I live in a two-room apartment with my mother and my minor daughter (all are registered in the apartment). The apartment is registered to my mother - she is the only owner. Three years ago the apartment was privatized for my mother, I refused the privatization, my daughter had not yet been born. Question: Do I need to pay taxes for this apartment? What is the current housing tax and do we need to pay it?

1. Tax rates are established by regulatory legal acts of representative bodies of local self-government (laws of the federal cities of Moscow and St. Petersburg) depending on the total inventory value of taxable items. Representative bodies of local self-government (legislative (representative) government bodies of federal cities of Moscow and St. Petersburg) can determine differentiation of rates within established limits depending on the total inventory value and type of use of the taxable object. Tax rates are set within the following limits: Up to 300,000 rubles (inclusive) up to 0.1 percent (inclusive) Over 300,000 rubles up to 500,000 Over 0.1 to 0.3 percent of rubles (inclusive) (inclusive) Over 500,000 rubles Over 0.3 to 2.0 percent (inclusive)

08 Aug 2021 piterurist 308

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Apartment mortgage

In Russia, from the beginning of 2021, banks and other financial institutions began to reduce mortgage rates. This facilitates faster loan repayment. Among the population, the topic of purchasing apartments and houses with mortgage lending is still relevant. Let's look at some reasons for mortgages among citizens:

The population does not have all or part of the amount to purchase housing
Possibility of renting out an apartment
Excellent opportunity to expand or improve living conditions
Buying an apartment with a mortgage is a great way to invest in your own rather than rented housing.
Possibility of early repayment of mortgage (maternity capital, etc.)
Possibility of choosing mortgage programs for state support for different segments of the population

Whether the apartment was purchased with a mortgage or with cash from citizens does not matter. Until the final repayment of the loan, the housing is pledged to the bank. Immediately after the apartment is re-registered to the buyer, the housing becomes his property. Mortgage lending is not a reason for privatization. When the buyer repays the loan, the deposit is canceled and any transactions can be made with the apartment without the participation of the bank. Until the loan is repaid, the consent of the bank or other institution is required for sale, donation, exchange, redevelopment, rental, etc. Any real estate purchased with a mortgage immediately becomes the property of the buyer, but with the encumbrance of the bank.

Do I need to pay tax when selling an apartment?

For example, if an apartment was inherited in 2016, then when selling it, say, in 2021 (i.e. after 4 years), the Seller will not have to pay tax (since the tenure period is more than 3 years, and it is preserved for inheritance). If, for example, when purchasing an apartment in a new building, ownership of it was registered in 2021, then when selling it in the same 2021, the owner will have to pay personal income tax on the income received as a result of the sale (since the tenure period is less than 5 -ty years old).

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In addition, the law gives the right to constituent entities of the Russian Federation to reduce, at their discretion, this very “minimum maximum period of ownership of real estate” down to zero, for all taxpayers or only for certain categories of citizens, or for certain categories of real estate (clause 6, Opens in new tab.">Article 217.1 of the Tax Code of the Russian Federation). Therefore, when selling an apartment, it makes sense to check in your region whether the general rule (stated above) applies to the minimum period of ownership of an apartment , or whether the regional authorities have reduced this period for their residents.

Military apartment mortgage

Military mortgages provide an opportunity for citizens involved in military service to receive a loan on preferential and favorable terms. They can especially count on larger loans. Let's consider the issue of military mortgages. Based on the Federal Law of the Russian Federation No. 117 “On the mortgage savings system of military citizens,” the latter have the right to preferential mortgage lending.

Service living quarters provided to citizens of the Russian Federation liable for military service are related to the nature of their service. According to the Federal Law, such housing is provided for the duration of military service. Upon dismissal or change of place of service, citizens liable for military service have the right to privatization and ownership of the apartment. Law No. 117 Federal Law specifies a savings mortgage system for military personnel. That is, regardless of the presence or absence of housing for a military man or his family members, he can purchase this property using mortgage lending. After full payment of the preferential loan, the person liable for military service becomes the full owner of the apartment. Such housing also does not need privatization.

Privatization of a cooperative apartment

whether the share contribution has been paid, that is, whether there is a basis for obtaining the necessary Certificate of State Registration of Property Rights;
clarify when this was done, since there are some differences in the procedure for those who paid the share before 1997 and those who did it later.

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It turns out that the very question of whether it is necessary to privatize a cooperative apartment is meaningless, since the state and the municipality did not have any rights to it initially. It’s true that the housing cooperatives that acted as owners no longer exist. Instead, according to the requirements of the law, HOAs arose.

How to register ownership of an apartment in a new building

When going through this procedure, you need to submit a number of documents, including title documents for the apartment. Until the ownership right is formalized, such a document will act as a transfer deed , which is issued by the developer to the buyer.

If it suddenly turns out that the buyer has already done a redevelopment , as a result of which some areas of the apartment have changed their characteristics, then this redevelopment needs to be legalized , for which it is necessary to go through a certain procedure.

Privatization of an apartment in a new building

Privatization has its advantages. And it is worth paying attention to the fact that when sold, privatized housing is valued at a higher price, so the expenditure of time, nerves and money in the future can turn into additional income if the purchase and sale transaction is successfully concluded.

Good afternoon, acting in the interests of your incapacitated son, provided that you are appointed as his legal guardian, you can privatize the apartment in your son’s name. At the same time, taking into account the provisions of Part 2 of Art. 20 of the Civil Code of the Russian Federation, you can register in an apartment privatized in the name of your son only with the consent of the guardianship and trusteeship authorities.

Is it necessary to privatize an apartment?

Privatized housing is your property, and you have the same rights to it as if you had purchased a new apartment. As the owner of privatized housing, you can make various types of transactions with this property: sell, rent, bequeath, donate, mortgage. As the owner of social housing, you cannot carry out the above listed real estate transactions.

Privatization is a government program that allows a citizen to transfer free of charge the residential premises in which he lives and become its owner. In this way, social housing becomes private. A citizen can exercise this right only once in his life.

Interesting read: Pre-trial settlement of disputes under a loan agreement