In the last decade, there has been an active development of the housing sector. In addition to housing itself, the right to real estate in a house under construction can also become the object of sales transactions. A new type of investment has appeared - the purchase of apartments in new buildings at the initial stages of building construction. In this case, the sale of apartments in new buildings is also possible under an assignment agreement.
Assignment - what is it?
A person concluding an equity agreement with a construction company receives primary rights to real estate, which can be transferred to a third party.
What does reassignment of an apartment in a new building mean? This concept is called a deal to transfer these rights. It is also called cession. The parties to the transaction - the seller and the buyer - are called, respectively, the assignor and the assignee.
The third party here is the developer, since the contract for the transfer of the apartment involves the transfer of rights and obligations in relation to it. After completing the contract, the assignee will decide all disputed issues with the developer. A feature of this type of sale of real estate is that the transaction can be completed before the housing is put into operation and an acceptance certificate is signed. The assignment agreement is valid until the new building is legally commissioned.
Assignment of an apartment in a new building: types
There are two types of real estate transfer transactions.
The first type is based on an agreement on shared participation in the construction of a residential building. The assignor has the right to sell housing only after it has fully paid for it. In practice, situations also arise when obligations to pay debts are transferred to the buyer. Until the house is put into operation, such contracts may be concluded repeatedly.
The second type is based on a preliminary contract of sale. The rest of the debt is transferred in full to the buyer. This type of transaction does not record the transfer of real estate from seller to buyer. The meaning of the agreement is that in the future the parties are obliged to draw up an assignment agreement. If the contract is terminated, the buyer will be paid back the money paid.
Construction companies are categorically against signing such agreements for several reasons:
- To exclude the possibility of further resale of real estate.
- Investors sell apartments at lower prices.
- Renewal of rights is a laborious and lengthy process.
Clearance process
Assigning an apartment in a new building is a multi-stage process for both the buyer and seller.
The seller needs:
- Notify your intention to the construction company.
- Get official consent from the developer (for the issuance of permission companies take a lot of money).
- Get a certificate from the developer about the absence of debts.
- Get an extract from the Unified State Register.
- Obtain a notarial consent from the spouse for the sale of real estate.
- Get official confirmation of debt repayment from the bank.
The buyer is only required to obtain consent from the spouse for the purchase of housing, and then sign the contract for the transfer of the apartment. The sample is usually available from the developer, and it can also be freely downloaded on the Internet. The conclusion of the contract takes place at the office of a construction company or in a law office. Registration can be done at any MFC or in a division of Rosreestr. At the time of conclusion of the contract, the presence of a representative of the registration authority and both parties to the transaction is mandatory. Also, the seller pays a state fee for registering a document. Within 10 working days, the contract is registered.
Important points
Selling apartments in new buildings under an assignment agreement at first glance seems a simple and straightforward procedure. There are points to which special attention should be paid.
Without a third party, and specifically the developer, the transaction cannot take place. If an apartment for sale in a mortgage is being sold, the participation of the creditor bank is also necessary.
A construction company may require a rather large percentage of the transaction from the seller. Unfortunately, it is impossible to fight such arbitrariness, since such actions are not regulated by law.
Property for sale should not be encumbered.
The risks
The transaction is generally considered safe because it is carried out under the supervision of the state registration authority. However, there are risks for the buyer.
The contract must indicate the full price of the apartment. In case of claims, the indicated amount is returned to the buyer. If the amount of the transaction is not indicated in the document, it shall be deemed invalid.
One and the same apartment can be sold repeatedly on assignment, so you need to familiarize yourself with the entire history of such transactions. The assignment agreement does not have to be registered. The transaction will be safe if you register it. Payment is made after the receipt of the package of documents by the buyer.
Usually, after the copyright holder finds out about the insolvency of the construction organization, the sale of the apartment by assignment follows. In this case, the buyer will not be able to regain even part of the funds paid in court.
Assignment of an apartment in a new building is considered invalid if the seller has not provided an extract from the bank, written permissions from the bank and the developer, as well as when the value of the property is low. The transaction is also not valid if the contract is executed during the period when the developer is officially declared bankrupt.
Is it possible to put in the contract "backdating"
Assignment of real estate rights is not possible after the acceptance certificate has been signed or when the purchase and sale transaction has already been completed. A sale can be made when the seller has already obtained ownership of the housing. Often, a significant period of time elapses between the surrender of real estate and the acquisition of ownership. Before the primary investor receives an apartment in the property, he can transfer his rights - re-register documents retroactively. If the cession is executed under an agreement on shared participation in construction, you can change the date on the act of acceptance. In the case of a preliminary contract, you can change the date of conclusion of the main document.
Taxation
The assignor, according to the Tax Code, must pay the tax on the sale of real estate. At the same time, an income tax of 13 percent is levied on the amount that is the difference between the cost of housing under the DDU and the assignment. For example, if an apartment from a developer was purchased for 2,000,000 and sold for reassignment for 2,100,000, the tax is levied on 100,000. Accordingly, a tax of 13,000 must be paid.
pros
Buying an apartment for reassignment is one of the modern types of investment. At the initial stages of construction, apartments are sold at a lower cost (sometimes 5-20% cheaper than the company) than in a finished house. Thus, this is one of the opportunities to save on the purchase of housing.
For persons who have entered into an equity agreement, assignment is the only option not to lose the invested money in the event that he had unforeseen circumstances, and he wants to return it to himself. Termination of the DDU is fraught with penalties on the part of the developer. In addition, cession makes it possible to make a profit.
Minuses
The obvious drawback is that a lot of documentation is required from the seller. In addition, most of the documents must be agreed with the bank and the developer. The developer may require substantial interest for the issuance of their consent.
For the buyer, the assignment may turn out to be a deceit, since the DDU can be invalidated by the developer. Then cession automatically becomes invalid. In order not to be deceived, you will have to spend a significant amount of time studying and checking the documentation. The help of qualified lawyers is often required, which involves certain material costs.
Assigning an apartment in a new building is a process that has many “pitfalls”. If you are going to acquire real estate in this way, the right step would be to contact a lawyer specializing in such transactions.