If the apartment was received under a rental agreement

Advantages and disadvantages

Each method of transferring real estate for use to third parties for a monthly monetary reward has both advantages and disadvantages.

For the buyer

The general advantages of all types of transactions for the buyer are:

• The opportunity to get housing for virtually nothing. If you look at the modern housing market, you will notice that individual apartments and houses cost millions of rubles. Not every young family can afford such an expensive purchase.
• The ability to avoid mortgage payments with interest, which also attracts buyers.
• The ability to use living space literally from the first payment of monthly payments to the owner of the property.

The disadvantages include:

• The obligation to care for the owner or help in his maintenance, if we are talking about a transaction with a dependent.
• The need to pay certain amounts monthly and on time, which is not always convenient for young families who are actively organizing their life.
• The obligation to pay the agreed amount for life if a permanent type transaction was concluded, not dependent on the death of the owner.

For the seller

General advantages for sellers or owners of apartments (houses) include:

• Guaranteed security of property rights. During the period of validity of the contract, the payer (buyer) cannot alienate the property without the written consent of the owner.
• The opportunity to live on your own square meters, while receiving a monthly payment for the use of an apartment or house from the buyer (payer).
• The ability to receive social support from the payer if an agreement on the maintenance of the owner was concluded.

The disadvantages include:

1. The likelihood of concluding a transaction with an unscrupulous buyer who neglects his responsibilities or disposes of the property at his own discretion (without obtaining the owner’s consent).
2. Threat of termination of the contract at the initiative of the payer (buyer or user of housing). The legislation allows you to terminate the agreement both at the initiative of the recipient of payments (the owner) and at the request of the payer (the user of the property).

Apartment rent agreement - what is it?

First of all, we suggest you understand the terminology. Rent is the transfer of ownership of real estate in exchange for an obligation to provide maintenance to the owner for a certain period.

There are three main types of rent:

1. Rental agreement for an apartment with lifelong maintenance;
2. Permanent annuity agreement;
3. Lifetime maintenance agreement with dependents.

On the territory of the Russian Federation, the first type is the most popular and widespread. In this case, the money is paid throughout the life of the annuity recipient - the owner of the apartment. After the death of the owner (recipient), the contract terminates and the property becomes the property of the person who paid the rent.

A permanent annuity agreement implies unlimited payments of funds. If the payer dies, the payment obligations are inherited.

As for dependent rent, the payer can either transfer assistance to the apartment owner in the form of cash payments, or satisfy his needs in another way. For example, regularly buy necessary medicines, products, and provide spa treatment.

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Conditions of termination and termination

The contract terminates automatically if one of the conditions is met.

For example, the validity period was set until the death of the owner. As soon as the new owner presents a death certificate, the registration authority removes the encumbrance from him and he can fully dispose of the acquired property.

Termination of the document may occur at the initiative of one of the parties. More often, such termination is carried out through the courts. Termination is also available by signing a document on a mutual agreement to terminate the transaction.

The legislation provides for only two conditions under which a transaction is considered void - these are:

• The incapacity of the owner at the time of conclusion of the transaction, proven by the heirs through the presentation of relevant medical documents and testimony.
• Violation of the conditions stipulated in the contract by one of the parties.

In other cases, it is almost impossible to invalidate the contract through the court.

As judicial practice shows, more often the initiators of termination are owners who are offended by payers. New owners of square meters simply forget about the elderly, depriving them of timely payments or care (maintenance).

General rules for purchasing a rental apartment

Regardless of whether the annuity was purchased or executed, there are a number of “universal” and general rules for the buyer, since it is he who bears all the risks associated with this transaction. If the apartment is rented (or was rented), you need to:

• study the rental agreement directly;
• familiarize yourself with the list of potential heirs (read about disputes with heirs here);
• establish how long the annuity agreement was executed;
• try to find out the circumstances and cause of death of the rentier if the annuity agreement is executed;
• discuss the situation with the annuity recipient if we are talking about a buyout transaction.

Naturally, the buyer is not able to independently assess potential risks. Therefore, when purchasing an apartment that was (or was) pledged under a rental agreement, you must definitely consult a lawyer.

There is little a realtor can do in this situation. Despite the fact that he is a professional in the real estate market, a realtor will not be able to assess the legal consequences of certain circumstances. And he certainly does not have the necessary judicial practice.

Are you planning to purchase a property that has a rental collateral? Discuss for free with the site’s lawyer all aspects of purchasing an apartment under an executed (purchased) rental agreement, the risks and legal consequences of the transaction.

It's not a fucking inheritance. Author! Listen here, granny draws up a life annuity agreement for HER share/apartment and all this nonsense is notarized. Granny died, the one who supported her receives proof of ownership. And that’s it! You can challenge the rent only when your granny is alive. It doesn’t matter who was disabled and so on, she died that way. This option is much better than when grandma dies without leaving (or even leaving) a will, the pain is a thousand times greater.

On the other hand, even if the inheritance is absolutely transparent, it is a thousand times better when the apartment has a list of previous owners on 5 pages. This is where you are in the extreme.

You probably don’t understand something about the transfer of ownership to the lessor at the moment of registration of the rent agreement. but the encumbrance remains until the death of the annuitant.

If the annuity dies before the annuitant, then the rights and obligations under the annuity agreement are inherited. If there is no heir, the apartment is terminated and the apartment is returned to the renter

Well, “they registered an apartment in the EIR” - they made me laugh

How to calculate the amount of rent?

The amount of the monthly payment established in accordance with the contract cannot be less than the subsistence level for a particular region. It is these indicators that you should focus on when setting fees. If there is no established minimum in the region, it is necessary to focus on the federal indicators established for the Russian Federation as a whole.

Dependency implies payment for medical services and provision of social and living conditions for the owner.

Therefore, all services provided by the payer must be clearly formulated in the contract.

Payment of the rent can be made in a lump sum, but this is not a mandatory condition of the transaction. Typically, the contract specifies the monthly amount and the frequency of payments (for example, at the end of each month).

The amount of payments may be tied to the cost of housing (an installment plan option). In this case, a purchase and sale agreement is additionally drawn up. Or be installed without reference to the market price. In this case, the property is transferred under a gift agreement.

Buying an apartment with purchased rent

In certain situations, rentiers have the right to demand that the payer buy out the annuity, provided that the transaction was formalized as a permanent annuity. The circumstances are given in Art. 593 Civil Code of the Russian Federation:

• annual delay in payments under the contract;
• failure to comply with the requirements of Part 2 of Article 587 of the Civil Code of the Russian Federation on securing a permanent annuity agreement;
• insolvency of the payer, or circumstances from which it follows that the payer is unable to fulfill the terms of the agreement;
• housing is divided between several owners, or has become common property.

Important! The law does not limit the parties to the transaction on the grounds for demanding ransom. The above list may be supplemented by the terms of the contract.

The above conditions are the right of the recipient, not the annuity payer. Moreover, based on the above conditions, the rentier may demand termination of the transaction. We wrote more about this here.

The buyer of an apartment with purchased rent must understand that this is not the purchase of an apartment under a rental agreement - the risks in this situation are different, so you will need to carefully study the rental agreement (it is legally binding for the seller and must be provided upon the buyer’s first request). Legal support of the transaction will also be required, especially in difficult circumstances.

Svetlana O. entered into an annuity agreement with her grandmother. After 5.5 years, the woman decided to buy a new apartment and move her grandmother to live with her, and sell the rent recipient’s old apartment. The woman turned to a lawyer, who drew up a complex agreement, the subject of which was the purchase of rent and the sale of housing.

When purchasing an apartment with a purchased rent, neither the buyer nor the seller bears increased risks associated with the peculiarity of the form of the seller's right. Provided that the purchase and sale agreement is prepared correctly, the execution of the transaction does not cause complications. Read more about buying and selling housing here.

Damage to property

Accidental loss or damage to the property transferred into possession does not relieve the payer from his obligations. This is directly indicated by Article 595 of the Civil Code.

Responsibility for property transferred free of charge rests entirely with the new owner (payer). But with a lifetime annuity, he continues to pay monthly amounts and fulfill other obligations, if any. A permanent type of annuity gives the right to demand termination of obligations or changes in the terms of the contract through the court.

Fraud

Citizens always treat transactions of this type with some concern. And for good reason - scammers are quite common in the modern market. It is for this reason that experienced lawyers recommend entering into transactions only with people you know or close relatives, in whose honesty you can be 100% sure.

Of course, the contract itself can provide some protection: the new owners will not be able to dispose of the property without the consent of the owner.

The main risks are:

1. To the wrong choice of partner. Each party must make sure that they can communicate with the chosen person for a long time, and that this person is trustworthy.
2. To an incorrect determination of your capabilities. This applies mostly to the payer. Before concluding a transaction, you must initially assess your financial situation and the ability to ensure monthly payments.

Moreover, fraud is also common among owners. For example, over time, old people accuse the payer of failure to fulfill their obligations and demand termination of the contract through the court. Or mental illness is imitated, and relatives refer to the incapacity of the owner who signed the contract.

Where to find a partner?

As mentioned above, it is better to look for a partner for a transaction through friends or relatives. In this case, the risks of encountering scammers are reduced, since those interested in rent rely on real reviews and recommendations.

Lifetime annuities are becoming more and more common in Moscow and other large cities. This situation is due to economic realities - visitors cannot purchase an apartment on their own.

The best ways to find an apartment are:

• an agreement with a relative or good friend who already has housing in the city and needs the help of an outsider;
• searching for housing and people renting it out through social services; search for relevant advertisements through real estate websites.

This register of unscrupulous developers will help you avoid troubles with real estate. Selling your child’s share is a very difficult matter that should only be carried out as a last resort! Our article describes this procedure in detail.

What responsibility does a developer bear if he does not comply with construction deadlines? The link contains all the information on this topic.

Apartment with a “load”

A rent-free apartment obviously has a difficult “reputation.” When selling it, this fact will negatively affect liquidity. “This factor can lengthen the exposure period, but, as a rule, there is no reason for a significant discount,” explains Mikhail Kulikov. According to Alexey Bernadsky, in such cases the discount ranges from 5 to 10 percent of the market value.

Realtors advise when purchasing such apartments to pay attention to a number of signs.

Firstly, how much time passed between the conclusion of the contract and the death of the annuitant. “If very little time has passed, there is a possibility of encountering scammers, or even outright crime. Unfortunately, there are often quite shocking cases when rent payers literally poison their dependents in order to quickly get the coveted real estate,” explains Alexey Bernadsky.

Secondly, at least a year must pass from the moment of transfer of ownership of the apartment under the rental agreement. “Within six months, the inheritance opens, which means that applicants for the deceased’s housing may appear. In another year, all statutes of limitations will expire, when it will be possible to challenge the transaction. Even the fact that the rent is registered by a notary does not protect the home buyer from claims from relatives while the statute of limitations has not yet expired,” explains the expert.

Thirdly, it is worth assessing the degree of relationship between the payer and the annuity recipient. Often, relatives register such agreements between themselves so that housing does not fall into the inherited estate, and all sorts of “children of Lieutenant Schmidt” cannot lay claim to it.

In conclusion, let’s say that in theory it is possible to sell an apartment even with a valid rental agreement. In this case, all rights are transferred to the new rent payer. However, such cases are vanishingly rare.

In modern Russia, purchasing an apartment under a rental agreement is quite common. The risks borne by both parties are significant (you can read about them in this article). But rental housing is often put up for sale. We tried to figure out how risky such a transaction is, and whether it is worth getting involved with such real estate.