Norm 614 of the Civil Code of the Russian Federation, the comments of which will be given below, regulates rental relations. Based on its provisions, a general procedure for payment for the use of material assets is established. Consider further Art. 614 of the Civil Code of the Russian Federation with the comments of 2016 .
General Provisions
In paragraph 1 of Art. 614 of the Civil Code of the Russian Federation establishes a tenant's obligation to make timely payments for the operation of property. The terms, conditions, procedure for the transfer of money are established by the agreement between the parties. In some cases, they may not be determined by agreement. In this situation, it will be considered that the conditions, procedure and terms have been established that are usually used when renting such property in comparable circumstances.
Forms of payment
The general procedure for their establishment is defined in the second paragraph of Art. 614 of the Civil Code of the Russian Federation. In accordance with the norm, a fee is provided for all property transferred for use, as a whole or for each part of it in the form of:
- Payments set in a fixed amount. They can be made at one time or periodically.
- Shares of income, fruits, products obtained by using property.
- The provision of certain services by the tenant.
- Transfer by the user to the owner of the thing stipulated by the contract for possession, disposal or operation.
- The tenant shall incur costs to improve the used facility specified in the agreement.
Art. 614 of the Civil Code of the Russian Federation allows the establishment of other forms of payment by the parties.
Change in established amounts
It is referred to in paragraph 3 of Art. 614 of the Civil Code of the Russian Federation. According to the provisions of the norm, unless otherwise specified in the contract, the amount of payment may be changed by agreement of the parties within the time periods specified in the document. However, adjustments should not be made more than once a year. P. 3 Art. 614 of the Civil Code of the Russian Federation admits that other periods may be specified in the legislation for revising the amount of payment for certain types of lease relations or in cases of operation of certain types of property. The amount may be reduced at the request of the user, if, due to circumstances arising not at his will, the operating conditions established in the agreement or the condition of the facility has deteriorated significantly, and unless otherwise provided. This provision is fixed in paragraph 4 of the norm 614 of the Civil Code of the Russian Federation.
Additionally
Unless otherwise provided by the lease agreement, if the user substantially violates the payment deadlines, the property owner may demand early repayment of the debt. In this case, the final payment date is set by the owner of the object. Norm 614 of the Civil Code of the Russian Federation , however, limits the scope for the implementation of this right. The landlord may require early repayment of the amount for no more than 2 consecutive periods.
Art. 614 of the Civil Code of the Russian Federation with comments
The condition for payment for the rental of property is disclosed through the formulation of the conditions, form, procedure, size of the amounts to be paid. As a rule, the relevant clauses are present in the agreement. Meanwhile, in a number of cases determined by law, rates are used that are regulated or established by competent state authorities. In paragraph 1 of Art. 614 of the Civil Code of the Russian Federation recorded that the user must pay a fee:
- Timely, that is, within the time period established by the contract.
- For the operation of property transferred to him.
It follows that if the object is not used due to circumstances for which the tenant is not responsible, the amounts are not payable. This provision, in particular, applies if there has been a delay in the provision of property during the period in which operation was not possible due to defects identified.
Important point
In case of early termination of the lease, the fee until the end of the period specified in the contract is not charged. If there has been an advance payment, then it is refundable. In accordance with Art. 627, the lessee, by agreement of the rental, may withdraw from the legal relationship at any time. In case of early return of property, he receives the corresponding part of the amount paid in advance.
Harmonization of Terms
Article 614 of the Civil Code of the Russian Federation provides that the terms and procedure for making a payment are determined by the parties themselves. In particular, participants in the relationship can establish a specific frequency. For example, on the 10th day of each month for the previous or upcoming period or at the time of signing the agreement for the entire life of the property ahead. The parties may establish payment for all property as a whole or separately for each part of a certain amount (for premises and equipment, for example). The agreement may also establish payment options. Amounts can be paid in cash or transferred by bank transfer.
The specifics of payment methods
Norm 614 of the Civil Code of the Russian Federation in paragraph two provides for different options for settlement with the owner. The most popular way is to pay cash in a fixed amount. Payment can be periodic or single. However, norm 614 of the Civil Code of the Russian Federation allows for the possibility of compensation for the use of property by another counter offer. As it may be the provision of a share of income, products, fruits that were received by the tenant in the process of operating the property, the provision of any services, the imposition of costs to improve the condition of the object. However, not all expenses can act as a counter offer. He and, accordingly, the form of rent, is not a transfer of amounts for utilities provided to the user in connection with the operation of the facility. This is due to the fact that in this case the owner will not actually receive a counter offer for the transferred property. The provided forms of payment can be established both independently and in combination with each other.
Revision of Amount Amounts
The commented norm provides for the possibility to change the amount of payment by agreement of the participants in the lease. However, a review cannot be made more than once a year. This rule is dispositive. It will be valid if there is no agreement between the parties to restrict or prohibit the right to review the amount of payment. Other minimum time limits for adjusting amounts may be established in legislation. For example, in article 28 of the Law governing leasing, a review of the amount of payment is allowed no more than once every 3 months.
Explanations
The jurisprudence acknowledges that throughout the year the condition of the agreement establishing a fixed amount of payment should not be amended. If it is not established in solid form and is determinable, then a more frequent adjustment (monthly, quarterly, etc.) as a result of a change using the established calculation method will not be regarded as a revision within the meaning of paragraph 3 of Article 614 Civil Code. Such a situation is possible, for example, if the agreement provides for a quarterly increase in payment by indexation in accordance with the inflation rate or the rate is determined in an amount equivalent to the amount in foreign currency.
Board Reduction Terms
They are provided for in paragraph 4 of the commented norm. The lessee has the right to demand a reduction in payment in case of deterioration of the operating conditions of the property or the state of material assets. This should be determined by circumstances beyond his control. In this case, we are talking about the conditions of not only the use and condition of the values agreed upon in the contract, but also arising from their direct purpose, as defined in Article 611 of the Civil Code (Clause 1). For example, if the owner violates the obligation to carry out a major overhaul, the user may demand a reduction in the fee. In this case, there is a deterioration in the operating conditions of the facility. The magnitude of the reduction is limited by indicating that it complies with impairment. The size is determined in each case individually.
Advance payment
It is provided for in paragraph five of the commented norm. In accordance with the provisions, the owner is vested with the right to demand from the user an early payment of the amount specified in the contract. At the same time, the legislation limits the possibilities of the lessor. This is expressed in establishing the maximum number of periods for which an advance payment may be required - no more than two in a row. This right arises from the owner in the event of certain circumstances. In particular, a requirement may be made if the user has substantially violated the terms for depositing the amounts specified in the lease agreement. In practice, different situations may arise in which the owner can use this opportunity.
Materiality Criteria
A significant violation can be considered repeated (more than two times in a row) or a long delay in making payments, as well as the appearance of a large amount of debt due to incomplete transfer. When analyzing the nature of violations, the general rules established by 450 articles of the Civil Code should be applied (paragraph 2). It defines the criteria for classifying violations as significant. In particular, by virtue of this norm, regular, timely, but long-term payment at reduced rates is considered such.
When analyzing the materiality of a violation of the terms of the transfer, you can be guided by the explanations present in the legislation on mortgages. In particular, in accordance with the provisions of the Federal Law governing mortgage issues, foreclosure on an object pledged to secure an obligation repaid by periodic payments is permitted in the event of a systematic violation of the established schedule for the payment of amounts. In particular, this refers to non-compliance with conditions more than three times over a period of 12 months. The imposition of a penalty under this rule is also allowed if each delay is insignificant. This provision is dispositive. The parties are entitled to agree on other conditions for early payment and fix them in the contract.
Based on the meaning of the rules, we can conclude that the participants in the relationship can determine the rules and related, and unrelated to any violations of the user's property. For example, the contract may fix the need to compensate for the cost of overhaul. If retribution in the lease agreement is expressed in the fulfillment of the agreed action (provision of the service, performance of work), failure to fulfill the counter offer within the prescribed time period shall amount to non-payment in the agreed period in cash.
Conclusion
Lease relations in general are quite simple and regulated quite clearly. Difficulties may arise in cases where the parties have not provided for certain conditions of their partnership. In such cases, the rules established by law will apply. Particular importance in drawing up an agreement should be given to the conditions and procedure for making a payment, liability for late payment. As a rule, disputes are resolved in a complaint. However, in some cases, it comes to court. The agreement should stipulate in which cases the responsibility of one party or another comes, in what it is expressed, in what ways it is possible to resolve the conflict. The lease itself must be drawn up in accordance with the requirements of the law. Please note that some types of agreements are subject to state registration. At the same time, an encumbrance is established in relation to the object. It assumes that the owner cannot complete transactions with his property in the usual manner until the end of the lease term.