Housing issues are more relevant today than ever. Currently, Russians, as a rule, prefer to purchase housing in new buildings. The most popular option for buying real estate is to conclude at various stages of the construction of the DDU. What kind of contract is this? What nuances should a buyer know?
Shared construction is ...
Equity construction is called a special form of investment. Within its framework, a construction company is engaged in raising funds from citizens or organizations that are required for the construction of real estate. Citizens who invest in housing under construction are directly involved in shared construction. The developer company concludes DDU with them. What is it? The abbreviation stands for equity agreement.
Thus, the process of building a property is as follows:
- A construction company leases or acquires land for the construction of an object.
- The developer concludes DDU with citizens.
- Each participant in shared construction pays during the construction process the cost of his share.
- Upon the transfer of the facility into operation, citizens who have entered into a DDU become homeowners.
Members
Participants in shared construction are:
- Developer. This is a legal entity that has rights to use or own a land plot and a building permit. It can take any legal form. The main tasks of the builder are raising capital, construction of real estate.
- Equity holder. This is a citizen who decided to invest his own money in construction. Sometimes a legal entity may also act as an equity holder.
Legal regulation
The relations of participants in shared construction are regulated at the level of federal law. According to the law on DDU (214 FZ), an agreement concluded between a citizen-investor and a developer must contain:
- The subject of the contract, which is determined according to the existing project declaration and after completion of construction will be transferred to the ownership of the shareholder.
- The cost of the facility.
- Payment order.
- The period during which the object will be built and delivered to equity holders.
It is important to note that this law defines a rather strict framework regarding the period of completion of construction. In particular, according to 214 Federal Law of the DDU, the contract can be terminated at the initiative of the shareholder if the construction terms are not respected. Interest holders are entitled to receive reliable and complete information on the progress of construction.
Construction object
According to Federal Law 214, the DDU must contain information about the construction site. As objects can be both residential and non-residential premises of houses. They also include common house property (attics, basements, stairwells).
Registration of DDU
All DDU must undergo the procedure of compulsory registration in Rosreestr. The contract that passed through this authority is considered to be concluded. At the same time, it is possible to conclude a DDU for those facilities for which a building permit was issued no earlier than April 1, 2005.
The law also defines the stages of registration of DDU:
- Collection of necessary documentation, payment of state fees.
- Submission of documents for registration in the territorial office of Rosreestr. There, the DDU participant is provided with a receipt containing the date of acceptance of the documents with their list, contact information, name and signature of the employee of Rosreestr.
- Issuance of a registered contract.
The registration period of the DDU for the first shareholder may not exceed 18 days, and for the next - 5 days. Upon receipt of a registered DDU, an interest-holder passport and a receipt are required.
Cost
- a contract in which the price of the property should be indicated, as well as the procedure for payment of the amount. The builder is responsible for determining the value. Payment under the contract must be made only after the registration of the DDU. Often interest holders are provided with installment payment. Cost is subject to change. The reason for this may be a change in the area of the property on the basis of measurement. Usually the minimum possible deviations are written in the contract.
It is important to note that the price must be indicated in the contract in rubles (together with pennies). When the currency of another country is applied, a fixed rate is indicated. Until the registration of the DDU, some developers insist on making a certain amount, such actions are considered illegal. The developer in this case can be fined up to a million rubles.
Documents
If an apartment is purchased under the DDU, the package of documents submitted by the interest holder will be as follows:
- DDU along with add-ons and applications.
- Application from the construction company for the registration of DDU.
- Application from the shareholder on the registration of the contract.
- Interest-holders passport (for personal filing).
- Notarized power of attorney (when submitting documents through a representative).
- Notarized consent from the spouse for the acquisition of real estate.
- Pledge agreement (if credit funds are raised).
- A brief description of the facility being built.
- State duty receipt.
If the applicant is a minor, documents for him are filed by guardians. In this case, it is necessary to submit papers confirming the guardianship.
From the developer are required:
- project declaration;
- building permit;
- insurance or guarantee agreement.
How to check?
The registration of this document is carried out by Rosreestr. DDU, in accordance with applicable laws, are subject to mandatory registration. They should not contain items that in one way or another infringe on the rights of equity holders. When buying an apartment in a house under construction, you need to check the documentation for the land. In the clause of the agreement on the type of participation, the type of construction (multi-apartment or high-rise building, low-rise construction) must be indicated. There should be no other formulations, otherwise such actions are regarded as fraudulent.
To make sure that the DDU was indeed registered, you must carefully read it upon receipt. It must be marked. You can also get an extract from the Unified State Register.
Assignment
It has DDU pitfalls, like any contract. This is especially true for the transfer of rights. Assignment can be executed if the shareholder has fully paid the developer money under the contract and wants to sell the object. In most cases, the cost of such housing becomes higher. Assignment is also called an assignment agreement. You can issue it several times before putting the house into operation.
Buyers should pay attention that they are invited to purchase not only real estate, but also obligations under the DDU. Therefore, before buying, you must familiarize yourself with the technical and design documentation. It is also advisable to verify the validity of the contract itself.
Termination of DDU
In certain circumstances, you can terminate the DDU. What is this procedure and what is its essence? The reason for termination can only be failure to fulfill obligations according to the contract by the developer or participant. The termination initiative may come from both sides. The conditions for unilateral termination may be as follows:
- The participant delayed payment for more than 2 months.
- The constructed facility has significant drawbacks.
- The developer delayed the delivery of the house for more than 2 months.
Also, the shareholder has the right to sue if the construction company arbitrarily made changes to the design documentation or the terms of the contract.
What to consider
So, like any contract, it has many nuances and DDU. Pitfalls can be found at every stage of its conclusion. Here are the main points to pay attention to:
- Information about the construction organization in the DDU should be complete (address, name, authorized persons) and match the data in the design and permitting documents.
- If registration is carried out by the representative of the developer, he must have documentation on the delegation of these rights.
- The DDU should contain a detailed description of the facility and the deadline for completion.
- A guarantee period must be signed (5 years for residential premises).
- The DDU should reflect information on the area of the apartment, terms of payment in cases of its change.
- It is not allowed to have clauses in the contract that state that the developer willfully change the documentation.
- The contract is recognized valid until the parties fulfill their obligations.
- Commissioning deadlines must be accurate.
- The list of force majeure circumstances prescribed in the DDU cannot be large. The following formulations are allowed - war, terrorist attack, natural disasters.
- A constructed facility is not considered to be of high quality if it is not put into operation. This point should be described in the contract.
- The cost of housing should be indicated per 1 square meter in Russian or other, foreign currency with a fixed rate.
- The obligations of the shareholder can be considered fulfilled from the moment of depositing funds to the bank to the accounts of the developer.
- The procedure for terminating the contract and the amount of penalties should be described.
- should contain the conditions for reimbursement of the interest of the shareholder in the presence of significant defects of the object.
- Under the contract, the developer is entitled to use the funds of the shareholder only for the construction of the object.
- Should not be present clauses on the conclusion of agreements with third organizations (for example, with a management company).
The most common way to purchase housing in recent years is the DDU. What is it? This is an agreement on shared participation in construction. It must be concluded with the developer. This document has many pitfalls. However, the procedure for his conclusion is described in detail in the Federal Law, which received the number 214. Therefore, in order to avoid unpleasant situations in the future, you should carefully consider the procedure for his conclusion. In no case should he infringe on the interests of the shareholder in any way. Otherwise, you can protect your rights through the courts. But if the buyer has some doubts or does not understand the current legislative standards, he can always seek the help of a lawyer.