Recently, the acquisition of real estate through the conclusion of an equity agreement has become extremely relevant. Legislatively regulates the process of participation in shared construction No. 214-FZ. The essence of the law will be discussed in detail in the article.
On the subject of regulation of the Federal Law
The presented Federal Law was created to regulate relations closely related to attracting financial resources of citizens for the construction of apartment buildings. Attraction of cash investments takes place on a shared basis: in fact, each candidate for housing "takes off the share" for building a house.
Shared construction is a seemingly very simple, but at the same time very ambiguous process. Recently, more and more cases of deception of citizens registered as equity holders have begun to occur. In order to prevent such fraud, 214-FZ was developed. The essence of the law is very simple: the strict fixing of norms that would allow the qualitative implementation of the processes of shared construction.
About the developer and housing
In article 2 of the considered normative act two main concepts are fixed, which are used in all subsequent provisions of the law. The first term is "builder". According to the law, developers are legal entities that own land on which to build a residential property. The developer receives a special building permit, after which he begins the process of attracting finance.
The object of shared construction is always a residential or non-residential type of premises, which is subject to transfer to construction participants on a shared basis. It is worth noting that enterprises of a production nature cannot be such objects.
The essence of law 214-, therefore, is to consolidate the norms regarding shared construction.
On the right to raise finance
It has already been noted above that the process of raising funds cannot be started without obtaining special permission. What is the reason for this? It is worth recalling the essence of law 214-FZ. It is about minimizing cases of fraud and financial fraud. That is why article 3 of the normative act under review sets forth the rules according to which the developer is able to raise funds only after a declaration for construction is issued, as well as after a number of land management measures have been taken and registered. The developer is obliged to meet the date of sending the project declaration, as well as its requirements. Only in this case will it be possible to begin the process of raising funds from equity holders.
It is also worth highlighting the following requirements for developers:
- installation capital must be fully paid;
- the developer should not be subject to liquidation as a legal entity;
- there should be no decision of the arbitration court to suspend the activities of the developer;
- the developer should not be in the registry of unscrupulous developers;
- the developer has no arrears of taxes, debts or fees.
Further, it is worth talking about a special contract that developers and equity holders conclude among themselves.
Construction Contract
Article 4 of the normative act under consideration contains rather detailed provisions regarding the conclusion of a contract. It is worth noting that the essence of law 214-FZ is the strict consolidation of all possible legal processes relating to shared construction.
According to the law, one party to the contract is obliged to build a residential facility within the specified time, and the other party must pay the price specified in the contract in a timely manner. What elements should the contract contain?
- Firstly, this is the definition of a specific construction object, as well as all information about it.
- Secondly, the terms of construction and the price of the contract.
- Another important place in the contract is occupied by guarantees and ways of providing the developer with its obligations.
About terms and guarantees
What reflects the essence of 214-FZ? The act in question is intended to fix the maximum number of standards, thanks to which the process of shared construction would proceed as efficiently as possible. Section 6 of the law refers to timelines. So, the responsibilities of the developer include the timely transfer of the construction project to equity holders. In case of breach of contractual obligations, the developer is obliged to pay the affected parties to the transaction an amount in the amount of three hundredth part of the refinancing rate, which is set by the Russian Central Bank. The developer has the right not to pay penalties only if the other party refused to sign the deed of transfer.
The developer is obliged to warn interest holders about possible problems. So, if it is not possible to complete the construction of the facility by the deadline, then no later than two months before the date specified in the contract, all parties to the contract should be aware of this.
About contract requirements
For poor performance or complete failure to perform their duties on one side or another of the contract may be held liable. In accordance with Federal Law No. 214, the essence of which is discussed in this article, guilty parties will have to pay fines, penalties or forfeits.
Article 11 refers to the assignment of rights under a contract. It is possible only after the participant in shared construction pays the price of the contract, or transfers the debt to a new participant in the construction.
When can contractual obligations be considered fulfilled? According to article 12 of the Federal Law under consideration, only after full payment of the established amount and signing of the transfer document.
About project declaration
In the entire process of shared construction, an important role is played by one important document. Article 19 refers to it as a project declaration. This document includes all the necessary information about the developer and the construction site. Some provisions of the project declaration are copied by the contract of participants in shared construction, but only the most important ones. Basically, the declaration contains purely technical data. All of them must be certified by the executive authority of the respective region before the developer enters into an agreement with the first shareholder.
It is also worth noting that any consequences of a legal nature for the builder itself are possible only after verifying the facts from the project declaration. The form of the document under consideration is established by the authorized executive body of the subject of the Russian Federation.
The essence of 214- "On participation in shared construction" (the current version of 2013) is also to disclose the purpose of all relevant documentation.
About state regulation
State control is especially important in such a large area as the acquisition of real estate. In Russia, such control is manifested in the form of a set of individual functions. This is what article 23 points to:
- the right to request from developers all the necessary documentation and information on the progress of work;
- formation and publication of regulatory legal acts concerning shared construction;
- development of individual methodological documents and recommendations on issues of state control in the field of shared construction, etc.
So what does Federal Law 214-FZ contain? The essence of the law is simple: fixing the norms according to which the emergence of difficulties in the field of shared construction would be practically impossible.