Article 1 Subject of regulation of this Federal Law

1. This Federal Law regulates relations related to the attraction of funds from citizens and legal entities for the shared construction of apartment buildings and (or) other real estate objects on the basis of an agreement on participation in shared construction (hereinafter referred to as participants in shared construction) and the emergence of the right for participants in shared construction ownership of the objects of shared construction, and also establishes guarantees for the protection of the rights, legitimate interests and property of participants in shared construction.

2. In addition to the case provided for by part 1 of this article, the attraction of funds from citizens by an individual or legal entity with the assumption of obligations, after the fulfillment of which the citizen may have the right to own a dwelling in an apartment building under construction (created) is allowed in cases where it is provided legislation of the Russian Federation on housing savings cooperatives.

Article 2 Basic concepts used in this Federal Law

For the purposes of this Federal Law, the following basic concepts are used:

1) a developer - a legal entity, regardless of its organizational and legal form, or an individual entrepreneur who owns or leases a land plot and attracts funds from participants in shared construction in accordance with this Federal Law for the construction (creation) of apartment buildings on this land plot and (or) other real estate objects on the basis of the obtained building permit. At the same time, other real estate objects include garages, healthcare facilities, public catering, business, trade, culture and other real estate objects, with the exception of industrial facilities;

2) an object of shared construction - a residential or non-residential premises to be transferred to a participant in shared construction after obtaining permission to put into operation an apartment building and (or) other real estate object and which is part of the said apartment building and (or) other real estate object, under construction (created ) also with the involvement of funds from a participant in shared construction.

Article 3

1. The developer has the right to raise funds from participants in shared construction for the construction (creation) of an apartment building and (or) other real estate objects only after obtaining, in the prescribed manner, a building permit, publishing and (or) placing a project declaration in accordance with this Federal Law and the state registration of the property right or lease right of the developer to the land plot provided for the construction (creation) of an apartment building and (or) other real estate objects, which will include shared construction objects.

2. The right to attract funds from citizens for the construction (creation) of an apartment building with the assumption of obligations, after the fulfillment of which a citizen may have the right to own a dwelling in an apartment building under construction (created) has developers who meet the requirements of this Federal Law on the basis of contracts for participation in shared construction.

3. In the case of attracting funds from a citizen for the construction (creation) of an apartment building with the assumption of obligations, after the fulfillment of which the citizen may have the right to own a dwelling in an apartment building under construction (created) by a person who does not have the right to do so in accordance with with this Federal Law, a citizen may demand from this person the immediate return of the funds transferred to him, as well as the payment of double interest provided for by Article 395 of the Civil Code of the Russian Federation on the amount of these funds and compensation in excess of the amount of interest for losses caused to the citizen.

Article 4 Agreement for participation in shared construction

1. Under an agreement on participation in shared construction (hereinafter referred to as the agreement), one party (the developer) undertakes to build (create) an apartment building and (or) other real estate object within the period stipulated by the agreement and (or) with the involvement of other persons and after obtaining a permit for the commissioning of these facilities, to transfer the relevant object of shared construction to a participant in shared construction, and the other party (participant in shared construction) undertakes to pay the price stipulated by the contract and accept the shared construction object if there is a permit for commissioning an apartment building and (or) another real estate object.

2. The Government of the Russian Federation has the right to issue rules that are binding on the parties to an agreement when it is concluded and executed.

3. The contract is concluded in writing, is subject to state registration and is considered concluded from the moment of such registration.

4. The contract must contain:

1) determination of a specific object of shared construction to be transferred in accordance with the project documentation by the developer after he receives permission to put into operation an apartment building and (or) another real estate object;

2) the term for the transfer by the developer of the object of shared construction to the participant in shared construction;

3) the price of the contract, the terms and procedure for its payment;

4) warranty period for the object of shared construction.

5. If the contract does not contain the conditions provided for by paragraph 4 of this article, such a contract is considered not concluded.

6. The risk of accidental loss or accidental damage to the object of shared construction before it is transferred to a participant in shared construction is borne by the developer.

7. In the event of the death of a citizen participating in shared construction, his rights and obligations under the contract shall pass to the heirs, unless otherwise provided by federal law. The developer is not entitled to refuse such heirs to enter into the contract.

8. The property rights and obligations existing on the day of opening the inheritance of a participant in shared construction, based on an agreement concluded in accordance with this Federal Law, are part of the inheritance of a participant in shared construction in accordance with the Civil Code of the Russian Federation.

9. Relations arising from an agreement concluded by a citizen participating in shared construction exclusively for personal, family, household and other needs not related to entrepreneurial activities shall be subject to the legislation of the Russian Federation on consumer protection to the extent not regulated by this Federal Law.

Article 5 Contract price

1. The contract shall indicate the price of the contract, that is, the amount of funds payable by a participant in shared construction for the construction (creation) of an object of shared construction. The price of the contract can be defined in the contract as the sum of funds for reimbursement of costs for the construction (creation) of an object of shared construction and funds for payment for the developer's services.

2. By agreement of the parties, the price of the contract may be changed after its conclusion, if the contract provides for the possibility of changing the price, cases and conditions for changing it.

3. Payment of the price of the contract is made by making payments in a lump sum or in the period established by the contract, calculated in years, months or weeks.

4. If, in accordance with the contract, the payment of the price of the contract must be made by a participant in shared construction by making a lump-sum payment, the delay in making the payment for more than three months is the basis for the developer to file a claim to terminate the contract in a judicial proceeding.

5. If, in accordance with the agreement, payment of the price of the agreement must be made by a participant in shared construction by making payments within the period provided for by the agreement, a systematic violation by the participant in shared construction of the terms for making payments, that is, a violation of the payment deadline for more than three times within twelve months, or delay in making payment for more than three months is the basis for the developer to file a claim to terminate the contract in court.

6. In case of violation of the payment deadline established by the agreement, the participant in shared construction shall pay the developer a penalty (penalty) in the amount of one hundred and fiftieth of the refinancing rate of the Central Bank of the Russian Federation, effective on the date of fulfillment of the obligation, from the amount of the overdue payment for each day of delay.

Article 6 The term for the transfer by the developer of the object of shared construction to the participant in shared construction

1. The developer is obliged to transfer the object of shared construction to the participant in shared construction no later than the period stipulated by the agreement. At the same time, the term for the transfer by the developer of shared construction objects must be the same for all participants in shared construction, with the exception of the case established by part 3 of this article.

2. In case of violation of the term provided for by the agreement for the transfer of the shared construction object to the participant in shared construction, the developer shall pay to the participant in shared construction a penalty (penalty) in the amount of one seventy-fifth of the refinancing rate of the Central Bank of the Russian Federation, effective on the day of fulfillment of the obligation, from the price of the agreement for each day of delay.

3. In the event that the construction (creation) of an apartment building and (or) another real estate object cannot be completed within the period provided for by the contract, the developer, no later than two months before the expiration of the specified period, is obliged to send the participant in shared construction relevant information and a proposal to change contracts. A change in the term provided for by the contract for the transfer by the developer of an object of shared construction to a participant in shared construction is carried out in the manner established by the Civil Code of the Russian Federation.

Article 7 Quality assurance provided by the contract

1. The developer is obliged to transfer to the participant in shared construction an object of shared construction, the quality of which complies with the terms of the contract or, in the absence or incompleteness of the terms of such an agreement, the requirements of technical regulations, project documentation and urban planning regulations, as well as other mandatory requirements.

2. In the event that an object of shared construction was built (created) by a developer with deviations from the terms of the contract that led to a deterioration in the quality of such an object, or with other shortcomings that make it unsuitable for the use provided for by the agreement, the participant in shared construction, unless otherwise established by the agreement , at its choice, has the right to demand from the developer:

1) gratuitous elimination of deficiencies within a reasonable time;

2) a proportional reduction in the price of the contract;

3) reimbursement of their expenses for the elimination of deficiencies.

3. In the event of a material violation of the quality requirements for an object of shared construction, a participant in shared construction has the right to unilaterally refuse to perform the contract and demand that the developer return the funds and pay interest in accordance with Part 2 of Article 9 of this Federal Law.

4. The terms of the agreement on the release of the developer from liability for the shortcomings of the object of shared construction are void.

5. The warranty period for an object of shared construction is established by the agreement and cannot be less than five years. The specified warranty period is calculated from the date of transfer of the object of shared construction to the participant in shared construction, unless otherwise provided by the contract.

6. A participant in shared construction has the right to present claims to the developer in connection with the inadequate quality of the shared construction object, provided that such quality is revealed during the warranty period.

Article 8 Transfer of an object of shared construction

1. The transfer of an object of shared construction by the developer and its acceptance by a participant in shared construction is carried out according to the transfer act signed by the parties or another document on the transfer.

2. The transfer of an object of shared construction is carried out not earlier than after obtaining, in accordance with the established procedure, permission to commission an apartment building and (or) another real estate object.

3. After the developer receives, in accordance with the established procedure, permission to put into operation an apartment building and (or) another real estate object, the developer is obliged to transfer the object of shared construction within two months, but no later than the period stipulated by the contract.

4. A participant in shared construction who has received a message from the developer about the completion of construction (creation) of an apartment building and (or) other real estate object in accordance with the agreement and the readiness of the shared construction object for transfer, is obliged to proceed with its acceptance within the period specified in the agreement or, if such a period not installed, within seven working days from the date of receipt of the specified message.

5. A participant in shared construction, prior to signing a transfer act or other document on the transfer of a shared construction object, has the right to require the developer to draw up an act that indicates the non-compliance of the shared construction object with the requirements specified in Part 1 of Article 7 of this Federal Law, and refuse to sign the transfer act or another document on the transfer of an object of shared construction before the developer fulfills the obligations provided for by Part 2 of Article 7 of this Federal Law.

Article 9 Unilateral withdrawal from the contract

1. A participant in shared construction has the right to unilaterally refuse to perform the contract in the event of:

1) non-fulfillment by the developer of the obligation to transfer the object of shared construction within the period stipulated by the contract;

2) termination or suspension of the construction (creation) of an apartment building and (or) other real estate object, which includes an object of shared construction, in the presence of circumstances that clearly indicate that the object of shared construction will not be transferred to a participant in shared construction within the period stipulated by the agreement ;

3) a significant change in the project documentation of an apartment building under construction (created) and (or) another real estate object, which includes an object of shared construction, including a significant change in the size of an object of shared construction;

4) changes in the purpose of common property and (or) non-residential premises that are part of an apartment building and (or) other real estate;

5) failure by the developer to fulfill the obligations provided for by Part 2 of Article 7 of this Federal Law;

6) significant violation of the quality requirements for the object of shared construction;

7) in other cases stipulated by the agreement.

2. In the event of a unilateral refusal of a participant in shared construction to fulfill the contract, the developer is obliged to return the funds paid by the participant in shared construction on account of the price of the agreement, as well as to pay interest on this amount for the use of the specified funds in the amount of one hundred and fiftieth of the refinancing rate of the Central Bank of the Russian Federation, valid on the day of fulfillment of the obligation to return the funds paid by the participant in shared construction. The specified interest is accrued from the day the participant in shared construction makes funds or part of the funds on account of the price of the contract until the day they are returned by the developer to the participant in shared construction.

Article 10 Liability for violation of obligations under the contract

In the event of non-fulfillment or improper fulfillment of obligations under the contract, the party that has not fulfilled its obligations or improperly fulfilled its obligations is obliged to pay to the other party the penalties (fines, penalties) provided for by this Federal Law and the specified contract and compensate in full the incurred losses in excess of the penalty.

Article 11 Assignment of claims under a contract

1. The assignment by a participant in shared construction of the rights of claims under the contract is allowed only after payment by him of the price of the contract or simultaneously with the transfer of the debt to a new participant in shared construction in the manner established by the Civil Code of the Russian Federation.

2. Assignment by a participant in shared construction of the rights of claims under the contract is allowed from the moment of state registration of the contract until the signing by the parties of the deed of transfer or other document on the transfer of the object of shared construction.

Article 12 Fulfillment of obligations under the contract

1. The obligations of the developer are considered fulfilled from the moment the parties sign the transfer act or other document on the transfer of the shared construction object.

2. The obligations of a participant in shared construction are considered fulfilled from the moment the funds are paid in full in accordance with the contract and the parties sign the transfer deed or other document on the transfer of the shared construction object.

Article 13 Ensuring the fulfillment of obligations under the contract

1. In order to ensure the fulfillment of the obligations of the developer (pledger) under the contract, from the moment of state registration of the contract, the participants in shared construction (pledge holders) are considered to be pledged for the construction (creation) of an apartment building and (or) other real estate, which will include objects shared construction, a land plot owned by the developer on the right of ownership, or the right to lease to the specified land plot and an apartment building and (or) other real estate under construction (created) on this land plot.

2. In the event of state registration of a property developer's right to an object of construction in progress, such an object of construction in progress is considered to be pledged to the participants in shared construction from the moment of state registration of the developer's property right to such an object.

3. Upon state registration of the property developer's right to residential and (or) non-residential premises that are part of an apartment building and (or) other real estate, the construction (creation) of which was carried out with the involvement of funds from participants in shared construction, these premises are considered to be pledged from participants in shared construction from the moment of state registration of the property developer's right to such premises.

4. Pledge of property, provided for in parts 1-3 of this article, ensures the fulfillment of the following obligations of the developer under the contract:

1) return of funds contributed by a participant in shared construction, in the cases provided for by this Federal Law and (or) the agreement;

2) payment to a participant in shared construction of funds due to him in compensation for losses and (or) as a penalty (fine, penalties) due to non-fulfillment, delay in fulfillment or other improper fulfillment of an obligation to transfer an object of shared construction to a participant in shared construction, and other funds, due to him in accordance with the contract and (or) federal laws.

5. The developer is obliged to register the ownership of the object of construction in progress if there are grounds for foreclosure on the subject of pledge. If the developer evades state registration of ownership of an object under construction, state registration of ownership of such an object is carried out on the basis of a court decision made on the claim of a participant in shared construction on foreclosure on the subject of pledge.

6. If, prior to the conclusion by the developer of an agreement with the first participant in shared construction, the property specified in parts 1-3 of this article was pledged as security for other obligations of the developer, the attraction by the developer of funds of participants in shared construction is allowed subject to the following conditions:

1) the mortgagee of the property specified in parts 1-3 of this article is a bank;

2) consent has been obtained from the pledgee specified in Clause 1 of this Part to satisfy his claims at the expense of the pledged property in accordance with Part 2 of Article 15 of this Federal Law.

7. After the developer concludes an agreement with the first participant in shared construction, the property specified in parts 1-3 of this article, as a subsequent pledge, may be transferred to the bank (subsequent pledgee) to secure the repayment of a loan or a targeted loan provided by the bank to the developer for the construction of an apartment building and ( or) another real estate object, which includes objects of shared construction.

8. From the moment the parties sign the deed of transfer or other document on the transfer of the shared construction object, the right of pledge arising on the basis of this Federal Law does not apply to this shared construction object.

9. The provisions of the Civil Code of the Russian Federation and the Federal Law of July 16, 1998 N 102-FZ "On Mortgage (Pledge of Real Estate)" shall apply to relations arising from a pledge arising on the basis of this Federal Law, taking into account the specifics established by this Federal Law .

Article 14 Peculiarities of foreclosure on the subject of pledge

1. Execution on the subject of pledge may be levied not earlier than six months after:

1) the onset of the term provided for by the contract for the transfer by the developer of the object of shared construction;

2) termination or suspension of the construction (creation) of an apartment building and (or) another real estate object in the presence of circumstances that clearly indicate that the shared construction object will not be transferred to the participant in shared construction within the period specified in the agreement.

2. Foreclosure on the subject of pledge may be levied within the terms established by part 1 of this article, regardless of the terms for the developer to fulfill obligations to the mortgagees specified in parts 6 and 7 of article 13 of this Federal Law.

3. In the event of foreclosure on the subject of pledge, the developer and the pledgees specified in Parts 6 and 7 of Article 13 of this Federal Law shall be jointly and severally liable for the obligations of the developer, the fulfillment of which is secured by a pledge in accordance with Part 4 of Article 13 of this Federal Law.

Article 15 Features of the distribution of funds received from the sale of pledged property

1. The proceeds from the sale of the pledged property, after withholding the amounts necessary to cover the costs in connection with the foreclosure of such property and its sale, shall be directed to satisfy the requirements of participants in shared construction and mortgagees specified in Part 6 of Article 13 of this Federal Law .

2. If there is a shortage of funds received from the sale of the pledged property, such funds, after withholding the amounts necessary to cover the costs in connection with the foreclosure of this property and its sale, are distributed among the participants in shared construction and the pledgees specified in paragraph 6 of Article 13 of this Federal Law, in proportion to the size of their claims by the time these claims are satisfied.

3. Claims of the pledge holders specified in Part 7 of Article 13 of this Federal Law shall be subject to satisfaction after the claims of participants in shared construction and pledge holders specified in Part 6 of Article 13 of this Federal Law.

4. According to the requirements of the participants in shared construction and other pledgees that were not satisfied at the expense of the proceeds from the sale of the pledged property, the developer and pledgees specified in Parts 6 and 7 of Article 13 of this Federal Law shall be jointly and severally liable in the manner prescribed by law Russian Federation.

5. The funds due to participants in shared construction who did not declare their claims before the date of the public auction at which the pledged property was sold are subject to crediting to the notary's deposit. These participants in shared construction are entitled to receive funds through a notary's deposit in the manner prescribed by the legislation of the Russian Federation.

Article 16 State registration of ownership of shared construction objects

1. The right of ownership of a participant in shared construction to an object of shared construction is subject to state registration in the manner prescribed by Federal Law No. 122-FZ of July 21, 1997 "On State Registration of Rights to Real Estate and Transactions Therewith" registration of rights to real estate and transactions with it") and this Federal Law.

2. The basis for state registration of the ownership right of a participant in shared construction to an object of shared construction are documents confirming the fact of its construction (creation), - permission to put into operation an apartment building and (or) other real estate, which includes an object of shared construction, and a transfer deed or other document on the transfer of an object of shared construction.

3. The developer submits a permit for the commissioning of an apartment building and (or) another real estate object or a notarized copy of this permit to the bodies that carry out state registration of rights to real estate and transactions with it, for state registration of the ownership rights of participants in shared construction to shared objects construction no later than ten working days after receiving such permission.

4. A participant in shared construction or his heirs shall have the right to apply to the bodies that carry out state registration of rights to real estate and transactions with it, with an application for state registration of the right of ownership to an object of shared construction, built (created) at the expense of funds of such a participant in shared construction in in accordance with the agreement, after signing by the developer and the participant in shared construction or his heirs of the transfer act or other document on the transfer of the shared construction object.

5. When a participant in shared ownership arises in the event of ownership of an object of shared construction, a share in the ownership of common property in an apartment building simultaneously arises, which cannot be alienated or transferred separately from the ownership of an object of shared construction. The state registration of the emergence of the right of ownership to an object of shared construction is at the same time the state registration of the right of common shared ownership of common property, which is inextricably linked with it.

Article 17 State registration of the contract and assignment of claims under the contract

The contract and (or) assignment of the rights of claims under the contract are subject to state registration with the bodies that carry out state registration of rights to real estate and transactions with it, on the territory of the registration district at the location of the apartment building under construction (created) and (or) other real estate object, for construction of which funds are attracted in accordance with this agreement, in the manner prescribed by the Federal Law "On State Registration of Rights to Real Estate and Transactions with It".

Article 18

The developer uses the funds paid by the participants in shared construction under the agreement solely for the construction (creation) of apartment buildings and (or) other real estate objects in accordance with the project documentation.

Article 19 Project Declaration

1. The project declaration includes information about the developer and information about the construction project.

2. The project declaration is published by the developer in the mass media and (or) is posted in public information and telecommunication networks (including the Internet) no later than fourteen days before the day the developer concludes an agreement with the first participant in shared construction, and is also submitted to the body that carries out state registration of rights to real estate and transactions with it, and to the authorized body specified in Part 1 of Article 23 of this Federal Law.

3. Storage of the originals of the project declaration is carried out by the developer.

4. The developer is obliged to make changes to the project declaration regarding information about the developer and the construction project, as well as the facts of making changes to the project documentation, within three working days from the date of changing the relevant information.

5. On a quarterly basis, the developer is obliged to make amendments to the project declaration regarding the information provided for by Clause 6 of Part 1 of Article 20 of this Federal Law.

6. The changes specified in parts 4 and 5 of this article are subject to publication in the manner established for the publication of the project declaration, within ten days from the date of making changes to the project declaration.

7. If the developer violates the requirements for the project declaration established by this Federal Law, the participant in shared construction has the right to apply to a court or arbitration court with a claim to recognize the transaction as invalid as made under the influence of delusion. If the transaction is recognized as invalid, the developer is obliged to return the funds paid by the participant in shared construction under the agreement and pay interest in accordance with Part 2 of Article 9 of this Federal Law.

Article 20 Information about the developer

1. Information about the developer must contain information:

1) on the company name (name), location - for the developer - a legal entity, on the last name, first name, patronymic, place of residence - for the developer - an individual entrepreneur, as well as on the mode of operation of the developer;

2) on state registration of the developer;

3) about the founders (participants) of the developer;

4) on projects for the construction of apartment buildings and (or) other real estate objects in which the developer took part during the three years preceding the publication of the project declaration;

5) on the type of activity to be licensed, the number of the license, its validity period, on the authority that issued this license, if the type of activity is subject to licensing in accordance with federal law and is associated with the developer's activities to attract funds from participants in shared construction for the construction (creation) of multi-apartment houses and (or) other real estate objects;

6) on the amount of own funds, the financial result of the current year, the amount of accounts payable on the day of publication of the project declaration.

2. The developer is obliged to present for review to any person who applied:

1) constituent documents of the developer;

2) certificate of state registration of the developer;

3) certificate of registration with the tax authority;

4) reporting on the financial and economic activities of the developer in accordance with the established forms;

5) approved annual reports, balance sheets, accounts (distribution) of profit and loss for the last three years of entrepreneurial activity by the developer and for the actual period of entrepreneurial activity if the developer has carried out such activity for less than three years;

6) an audit report for the last year of the developer's business activities.

Article 21 Information about the construction project

1. Information about the construction project must comply with the project documentation and contain information:

1) on the purpose of the construction project, on the stages and terms of its implementation, on the results of the state examination of project documentation, if such an examination is established by federal law;

2) on a building permit;

3) on the rights of the developer to the land plot, on the owner of the land plot if the developer is not the owner, on the boundaries and area of ​​the land plot provided for by the project documentation, on the elements of improvement;

4) on the location of an apartment building under construction (to be created) and (or) another real estate object and on their description, prepared in accordance with the project documentation, on the basis of which a building permit was issued;

5) on the number of independent parts (apartments in an apartment building, garages and other real estate objects) in the structure of an apartment building under construction (created) and (or) another real estate object, transferred to participants in shared construction by the developer after obtaining permission to put the apartment building into operation and ( or) another real estate object, as well as a description of the technical characteristics of these independent parts in accordance with the project documentation;

6) on the functional purpose of non-residential premises in an apartment building that are not part of the common property in an apartment building, if the property under construction (created) is an apartment building;

7) on the composition of the common property in an apartment building and (or) other real estate object, which will be in the common shared ownership of the participants in shared construction after obtaining permission to put into operation these real estate objects and transfer the objects of shared construction to the participants in shared construction;

8) on the expected period for obtaining permission to put into operation an apartment building under construction (created) and (or) other real estate, a list of state authorities, local governments and organizations whose representatives participate in the acceptance of the said apartment building and (or) other object real estate;

9) on possible financial and other risks in the implementation of the construction project and measures for voluntary insurance by the developer of such risks;

10) on the list of organizations carrying out the main construction and installation and other works (contractors).

2. At the request of a participant in shared construction, the developer is obliged to submit for review:

2) a feasibility study for the project for the construction of an apartment building and (or) other real estate;

3) the conclusion of the state examination of project documentation, if such an examination is established by federal law;

4) project documentation, including all changes made to it;

5) documents confirming the developer's rights to the land plot.

1. In the production, placement and distribution of advertising related to the attraction of funds from participants in shared construction for the construction (creation) of an apartment building and (or) other real estate, it is not allowed:

2) advertise an apartment building and (or) other real estate before issuing, in accordance with the established procedure, a permit for the construction of these apartment buildings and (or) other real estate, publishing and (or) placing a project declaration and state registration of ownership or lease rights to a land plot , provided for the construction (creation) of an apartment building and (or) other real estate object, which will include shared construction objects.

2. The distribution of advertising related to the attraction of funds from participants in shared construction for the construction (creation) of apartment buildings and (or) other real estate objects, in all cases, must be accompanied by an indication of the places and methods for obtaining the project declaration provided for by this Federal Law.

3. It is prohibited to distribute advertising related to the attraction of funds from participants in shared construction for the construction (creation) of apartment buildings and (or) other real estate objects, for the period of suspension of the developer’s activities related to the attraction of funds from participants in shared construction for the construction (creation) of apartment buildings and (or) other real estate objects in accordance with this Federal Law.

Article 23. State regulation, control and supervision in the field of shared construction of apartment buildings and (or) other real estate

1. State regulation, control and supervision in the field of shared construction of apartment buildings and (or) other real estate objects are carried out in accordance with this Federal Law by the authorized federal executive body (hereinafter referred to as the authorized body), as well as other federal executive bodies within their competencies.

2. The authorized body has the right:

1) establish, jointly with the federal executive body responsible for regulatory and legal regulation in the field of finance, the rules for accounting and financial statements of developers;

2) exercise control over the intended use by the developer of funds paid by participants in shared construction under an agreement for the construction (creation) of apartment buildings and (or) other real estate in accordance with this Federal Law;

3) receive from the federal executive body authorized to exercise the functions of generating official statistical information, documents and information necessary to control the activities of developers related to raising funds from participants in shared construction for the construction (creation) of apartment buildings and (or) other real estate objects;

4) receive quarterly reports from the developer on the implementation of activities related to the attraction of funds from participants in shared construction for the construction (creation) of apartment buildings and (or) other real estate objects, including on the fulfillment of their obligations under contracts in the forms and in the manner that established by the Government of the Russian Federation;

5) exercise control over the activities of developers related to the attraction of funds from participants in shared construction for the construction (creation) of apartment buildings and (or) other real estate objects;

6) exercise control over compliance with the provisions of this Federal Law, consider complaints from citizens and legal entities related to violations of this Federal Law;

7) send instructions to developers to eliminate violations of this Federal Law, regulatory legal acts of the President of the Russian Federation, regulatory legal acts of the Government of the Russian Federation, legal acts of the authorized body and set deadlines for eliminating such violations;

8) apply to the court with statements in defense of the rights and legitimate interests of participants in shared construction;

9) exercise other powers provided for by this Federal Law.

3. The requirements for the amount of the developer's own funds, the procedure for calculating the amount of these funds, as well as the standards for assessing the financial stability of the developer's activities are established by the Government of the Russian Federation.

4. In case of violation by the developer of this Federal Law, regulatory legal acts of the President of the Russian Federation, regulatory legal acts of the Government of the Russian Federation, failure to comply with the instructions of the authorized body, refusal to provide information in accordance with this Federal Law or provision of incomplete and (or) inaccurate information, the authorized body (its officials) have the right to:

1) require developers to eliminate identified violations;

2) send to developers binding orders to eliminate violations of this Federal Law, regulatory legal acts of the President of the Russian Federation, regulatory legal acts of the Government of the Russian Federation, legal acts of the authorized body;

3) take the measures necessary to bring the developer (its officials) to liability established by this Federal Law and the legislation of the Russian Federation on administrative offenses.

5. The developer, to whom the order of the authorized body was sent in accordance with clause 2 of part 4 of this article, within three months from the date of sending the said order, has the right to apply to the arbitration court with an application to recognize the said order as illegal. Application to the arbitration court with an application for recognition of the said order as illegal does not suspend its execution. The procedure for filing such an application, the procedure for its consideration and the procedure for making a decision on an application for declaring an order illegal are determined by the legislation on legal proceedings in arbitration courts.

6. The authorized body has the right to apply to the arbitration court with an application to suspend, for a certain period of time, the developer's activities related to raising funds from participants in shared construction for the construction (creation) of apartment buildings and (or) other real estate objects, if:

1) submission of reports provided for by this Federal Law is delayed for more than thirty days;

2) the amount of the developer's own funds is below the minimum values ​​established by the Government of the Russian Federation;

3) the developer does not comply with the standards of financial stability of its activities, established by the Government of the Russian Federation;

4) the developer does not satisfy the claims of participants in shared construction for monetary obligations provided for by Part 4 of Article 13 of this Federal Law, and (or) does not fulfill the obligation to transfer the object of shared construction within three months from the date of satisfaction of such requirements and (or) execution of such duties. At the same time, these requirements in the aggregate must be at least 100 thousand rubles;

5) the developer did not comply with the provisions of this Federal Law, as well as other regulatory legal acts adopted in accordance with it, provided that during the year the measures of influence provided for by this Federal Law were applied to the developer two or more times.

7. The authorized body has the right to apply to the arbitration court with an application for the liquidation of the developer, which is a legal entity, or for the termination by the developer, which is an individual, of activities as an individual entrepreneur forcibly in the event of a repeated or gross violation by the developer of the provisions of this Federal Law or adopted in in accordance with it, other regulatory legal acts, as well as in other cases provided for by federal laws.

Article 24

Include in the Federal Law of July 21, 1997 N 122-FZ "On State Registration of Rights to Real Estate and Transactions with It" (Sobraniye Zakonodatelstva Rossiyskoy Federatsii, 1997, N 30, Art. 3594; 2001, N 11, Art. 997; No. 16, item 1533; 2002, N 15, item 1377; 2003, N 24, item 2244; 2004, N 27, item 2711; N 30, item 3081; N 35, item 3607; N 45 , item 4377) the following changes:

1) Paragraph 1 of Article 7 shall be supplemented with the following paragraph:

"In an extract from the Unified State Register of Rights containing information about the land plot on which a real estate object is being created, which includes residential and non-residential premises that are the subjects of contracts for participation in shared construction, in addition to information about the mortgage, the presence of registered contracts for participation in shared construction is indicated construction with a list of objects of shared construction, as well as company names (names) of legal entities - participants in shared construction, last names, first names, patronymics of individuals - participants in shared construction.

2) supplement Article 25 1 with the following content:

"Article 25 1 . State registration of contracts for participation in shared construction

1. For the state registration of contracts for participation in shared construction, along with the documents required for state registration in accordance with this Federal Law, documents describing the shared construction object with an indication of its location on the plan of the real estate object being created and the planned area of ​​the shared construction object are submitted.

2. State registration of an agreement on participation in shared construction, concluded by the developer with the first participant in shared construction, is carried out on the basis of an application from the parties to the agreement (developer, participant in shared construction). For state registration of an agreement on participation in shared construction, concluded by the developer with the first participant in shared construction, along with the documents necessary for state registration of an agreement on participation in shared construction in accordance with this Federal Law, the developer shall submit:

1) building permit;

2) project declaration;

3) a plan of the immovable property object to be created, indicating its location and the number of residential and non-residential premises included in the immovable property object to be created, and the planned area of ​​each of these premises.

3. An entry about the agreement on participation in shared construction (on its amendment, on termination, on the assignment of rights of claim under this agreement), the state registration of which is established by federal law, is made in subsection III of section containing entries on transactions, open to the land plot on which a real estate object is being built in the order of shared construction, the Unified State Register of Rights. During state registration of an agreement on participation in shared construction, an entry is also made in this subsection about a pledge of a land plot or a pledge of the right to lease arising on the basis of federal law, indicating in the column "special marks" the extension of the right of pledge to the real estate object being created.

4. An application for entering into the Unified State Register of the rights to record the termination of an agreement on participation in shared construction may be submitted by one of the parties to the agreement on participation in shared construction, attaching documents confirming the termination of the agreement. The state registration authority, when submitting an application by one of the parties to such an agreement, is obliged to notify the other party to the agreement in writing within a working day.

Article 25 On Amendments to the Code of the Russian Federation on Administrative Offenses

Include in the Code of the Russian Federation on Administrative Offenses (Sobraniye Zakonodatelstva Rossiyskoy Federatsii, 2002, N 1, Art. 1; N 18, Art. 1721; N 30, Art. 3029; N 44, Art. 4295; 2003, N 27, Art. 2700, 2708, 2717; N 46, items 4434, 4440; N 50, items 4847, 4855; 2004, N 30, item 3095; N 31, item 3229; N 34, items 3529, 3533; N 44, item 4266) the following changes:

1) paragraph two of part 3 of article 3.5 after the words "on environmental protection," add the words "on participation in shared construction of apartment buildings and (or) other real estate objects,";

2) Part 1 of Article 4.5 after the words "on elections and referendums" shall be supplemented with the words "on participation in shared construction of apartment buildings and (or) other real estate objects,";

3) Chapter 14 shall be supplemented with Article 14.28 as follows:

"Article 14.28. Violation of the requirements of the legislation on participation in shared construction of apartment buildings and (or) other real estate

1. Attracting funds from citizens for the purposes of construction of apartment buildings by a person who does not have the right to do so in accordance with the legislation on participation in shared construction of apartment buildings and (or) other real estate objects, -

shall entail the imposition of an administrative fine on officials in the amount of from one hundred and fifty to two hundred times the minimum wage; for legal entities - from four thousand to five thousand times the minimum wage.

2. Publication in the media and (or) placement in public information and telecommunication networks by the developer of a project declaration (including changes made to it) containing incomplete and (or) inaccurate information, provision by the developer of incomplete and (or) inaccurate information , the publication, placement or provision of which is provided for by the legislation on participation in the shared construction of apartment buildings and (or) other real estate objects, as well as violation of the terms for the publication and (or) placement of a project declaration or changes made to it -

shall entail the imposition of an administrative fine on officials in the amount of from one hundred to one hundred and fifty times the minimum wage; for legal entities - from three thousand to four thousand times the minimum wage.

3. Failure to submit, within the prescribed period, to the body exercising control and supervision in the field of shared construction of apartment buildings and (or) other real estate objects, reporting in cases provided for by the legislation on participation in shared construction of apartment buildings and (or) other real estate objects, as well as submission of statements containing false information, -

4) Article 19.5 shall be supplemented with part 4 of the following content:

"4. Failure to comply within the established time limit with a lawful order of the body exercising control and supervision in the field of shared construction of apartment buildings and (or) other real estate objects, -

shall entail the imposition of an administrative fine on officials in the amount of from one hundred to one hundred and fifty times the minimum wage; for legal entities - from one to two thousand times the minimum wage.";

5) Chapter 23 shall be supplemented with Article 23.64 as follows:

"Article 23.64. Bodies exercising control and supervision in the field of shared construction of apartment buildings and (or) other real estate

1. Bodies exercising control and supervision in the field of shared construction of apartment buildings and (or) other real estate objects consider cases of administrative offenses provided for in Article 14.28 and Part 4 of Article 19.5 of this Code.

2. To consider cases of administrative offenses on behalf of the bodies specified in part 1 of this article, the following have the right:

1) the head of the federal executive body exercising control and supervision in the field of shared construction of apartment buildings and (or) other real estate objects, and his deputies;

2) heads of structural subdivisions of the federal executive body exercising control and supervision in the field of shared construction of apartment buildings and (or) other real estate objects, and their deputies;

3) heads of territorial bodies of the federal executive body exercising control and supervision in the field of shared construction of apartment buildings and (or) other real estate objects, and their deputies.

Article 26 On Amendments to the Federal Law "On Mortgage (Pledge of Real Estate)"

The first sentence of the second paragraph of paragraph 2 of Article 20 of the Federal Law of July 16, 1998 N 102-FZ "On Mortgage (Pledge of Real Estate)" (Sobranie Zakonodatelstva Rossiyskoy Federatsii, 1998, N 29, Art. 3400; 2002, N 7, Art. 629 ; 2004, N 27, item 2711; N 45, item 4377) shall be stated as follows:

"The state registration of a mortgage by virtue of law is carried out simultaneously with the state registration of the property right of a person whose rights are encumbered by a mortgage, unless otherwise established by federal law."

Article 27 Entry into force of this Federal Law

1. This Federal Law shall enter into force three months after the date of its official publication.

2. This Federal Law shall apply to relations related to the attraction of funds from participants in shared construction for the construction (creation) of apartment buildings and (or) other real estate objects, construction permits for which were obtained after the entry into force of this Federal Law.

The president
Russian Federation
V.Putin

First of all, let's figure out what DDU is, this term is commonly understood as a special type of investment, under the terms of which construction companies attract third-party capital for the construction of a building. The conclusion of an equity participation agreement in construction is currently the most popular. To ensure the legality of the transaction, a special document is drawn up, which is called the "participation agreement", in abbreviation - DDU.

Buying an apartment under a share agreement looks something like this:

• the developer company acquires or leases a land plot and draws up all the list of documents necessary for work;
• signs DDU with individuals or legal organizations and begins the process of building a house;
• upon completion of the construction, persons who have invested their share in the process and have an appropriate contract in their hands are recognized as homeowners.

Who is involved in the process

As well as in any contract, the parties signing it have a certain name. The first thing that a person who decides to purchase a home should understand for himself is who is who by definition. The main parties involved under the agreement on participation in shared construction are the developer and the shareholder. However, there are other aspects besides them:

• customer;
• general investor;
• contractor;
• general contractor;
• developer.

Which of them is responsible for what and to what extent can these “comrades” influence the course of work?

This term refers to the one who owns the rights to the land. During the construction of the house, the rights are formalized as ownership or lease.

Also, in the name of the developer, a permit is issued to conduct construction work on this particular site. Both a public institution and a private organization of any form of ownership can equally act as a developer.

In accordance with legislative acts, the developer simultaneously acts as a general investor. This means that in order to start construction work, he must contribute his own money, at least a third of the total cost of the project.

This term refers to a person who has the right to receive a share or, in other words, parts of a house under construction. Usually, the share is limited to the footage on which he is going to move in after the construction is completed and the building is put into operation. To ensure their rights, the shareholder (contributor) signs an agreement on equity participation in construction with the developer and transfers the amount specified in this document.

General contractor (general contractor) - a person or organization that assumes obligations for the implementation of all work carried out at the construction site. He controls everything - from digging a pit to completing the roof and providing the building with all engineering communications. It is he who is responsible to the customer for the quality and timing of the work performed. Typically, the general contractor involves other organizations in the process - contractors, subcontractors - to carry out various types of work.

It happens that the developer is at the same time the general contractor, and the customer, and the general investor.

Developer

This concept is broad and has no formal definition. So call themselves all those who are related to the development of construction projects. In this context, we mean all actions aimed at increasing the market price of real estate: construction, repair, reconstruction, change of functional affiliation. Also, this word is sometimes used to refer to those who manage financial flows in the construction process.

In a word, this can be called the developer, and the general contractor, and the general investor, and any company, one way or another involved in the construction and preparation of specific real estate for commissioning.

Federal Law 214 - regulation of legal relations

For some time now, the design of pre-school institutions in a new building has been strictly regulated at the state level. This is due to the increased cases of fraud in the primary real estate sales market, as well as an increase in the number of long-term construction and deceived equity holders.

Regulatory document No. 214-FZ "On participation in shared construction" is intended to regulate the legal relationship between the developer and the person who has invested his own or borrowed funds in the construction of housing.

The standard DDU agreement under 214-FZ 2017 provides that certain conditions must be included in the agreement without fail. The absence of each of them may become the basis for the recognition of the document as invalid.

The agreement must include:

• full and accurate details of the developer who concludes the contract and sells the apartment;
• information about the shareholder;
• the most accurate definition of the property: cadastral number for the land, building scheme, plan, area, number of rooms, location and footage of other premises, floor, location relative to other apartments, materials, etc.;
• terms of putting the house into operation and its final transfer to the contributor;
• the total cost of the premises, as well as a fixed price per 1 m2;
• the procedure for ensuring payments, sanctions for non-compliance with the terms of payment;
• a guarantee for the object under construction - more than 5 years for the building and at least 3 years for communications;
• the date and place where the contract was made.

At the request of the parties, additional clauses may be included in the document, which are necessary in specific conditions. Any additions cannot contradict the norms of the law.

Important point! Be sure to check the details of the company with which you sign the contract. It is they who should appear in the rest of the papers: the project declaration, permission for construction work and land, etc.

The norms of Federal Law No214 put developers in a rather strict framework. Most of all, this concerns the timing of the completion of construction work. According to the requirements of this document, equity holders have every right to receive reliable information about the progress of work at any time.

In accordance with the above law, the DDU agreement is a document that must contain complete and truthful information about the funded object. It is desirable to know that both residential and non-residential areas act as such. Common property is also included in the construction object. Here we mean utility rooms, basements, attics and flights of stairs.

Federal Law No. 214 determines that the registration of an equity participation agreement is carried out unconditionally. To do this, you should contact the Rosreestr and provide the relevant documents. Only the contract that has passed the state registration procedure can be considered officially concluded.

Important! No other documents, except for the DDU, require mandatory registration, which means that they do not protect the rights of equity holders from the intrigues of fraudsters.

To register a contract for participation in shared construction, you should visit:

• Regional Department of Rosreestr (10 days for the 1st participant and 5 for subsequent ones).
• MFC - the center for the provision of public services in your region (longer by 1-2 days).

If there is an electronic signature, registration of the DDU can be carried out electronically. You need to use the Rosreestr website and apply. This is exactly what those who purchase housing through a mortgage do. With this option, most banks provide a small discount on the interest rate.

Need to know! With the electronic registration of the DDU agreement in Rosreestr, the deadlines may be slightly delayed. However, this is fully offset by the savings in interest paid.

Registration of a shared construction agreement is carried out with the payment of a state duty. A receipt for its payment must be attached to the package of documents.

Price

This point is one of the fundamental in DDU. Its absence is considered grounds for declaring the document invalid.

The developer is responsible for calculating the cost of the contract, and the investor has to agree to the proposed conditions or refuse to sign the document.

By law, the document must contain not only the full cost of housing, but also the price of each square meter. It must be in national currency. If the monetary unit of another country is used in the calculations, it must indicate a fixed exchange rate against the national currency at the time of signing the agreement. Moreover, the contract contains an indication that, regardless of the situation on the foreign exchange market, the exchange rate should not be changed.

The cost of the contract can be changed only for one reason - on the basis of a change in the actual footage of the apartment after the final measurements. The size of permissible deviations is also indicated in the agreement.

Under the conditions specified in the contract, payments are made at a time or in installments over a certain period of time.

Since this year, a variant of alternative settlements for DDU - escrow accounts - has been legally approved. Such a mechanism is designed to additionally protect the money of depositors, and guarantee the reimbursement of funds in the event of a termination of the contract.

Package of documents

The regulations do not specify who exactly should carry out the registration procedure. Of course, it is best to do this personally, but you can entrust this moment to another person who has the appropriate authority. Documents for registering a DDU in Rosreestr will need the following:

• civil passport of the depositor;
• DDU with all available applications or additions;
• written statements from the parties on the registration of the DDU;
• consent of the spouse (if any) to conduct the transaction, certified by a notary;
• pledge agreement (when taking a mortgage);
• description of the object under construction in brief form;
• check for payment of state duty;
• a power of attorney with a mark of notarization, if the documents are submitted through a representative.

Also, the developer must additionally provide a building permit. Project declaration and papers confirming civil liability insurance.

How to check?

If you do not submit documents in person, but with the involvement of an intermediary, you must make sure that the registration has been completed. To do this, you should carefully study the DDU after receiving it. It must contain the corresponding mark.

To completely eliminate all doubts, you can additionally view an extract from the USRR. Additional information about the registration of the DDU can be requested at the MFC or on the portal of Rosreestr in the section "Reference information on real estate objects". In the window that opens, just enter the cadastral number from the contract and click "Create request".

And how to check that the developer has the right to conclude a DDU? There are also several signs for this, which should be checked as early as possible. So, you can buy an apartment under the DDU from the developer and not fall into the trap if the following conditions are met:

• there is an official permit for the construction of a residential building;
• information about the construction of the facility was posted on the website of the construction company or in the press;
• the construction organization can officially confirm its right to use the land (ownership or lease);
• at the first request, the contributor can familiarize himself with any documents of interest to him or they are posted in the public domain.

Assignment

Investments in the shared construction of Novosibirsk are carried out at different stages of building a house. Sometimes you need to give up your own rights to housing and transfer this opportunity to another person. This can be done by the contract of assignment of shared construction.

According to this document, the new owner receives the same amount of rights as the previous one. According to No214-FZ, or rather, Article 11 of this law, the assignment in shared construction is carried out on the following conditions:

• the funds for payment of the DDU have been paid in full or the debt is transferred along with the signing of a new agreement;
• there is the consent of the developer, because he is a mandatory participant in the transaction;
• state registration of kindergartens with a new participant in the process is being carried out.

Should be considered! Upon termination of the assignment agreement, the person who signed it may demand compensation for only the amount that is in the document. Therefore, if more was actually paid, no one will return the difference.

Therefore, if you want to participate in a process called "share construction", the assignment of rights may not be the best solution.

There are several options for when termination of a shared construction agreement is likely. Moreover, both parties can refuse to fulfill the conditions.

In this matter, the legislation is on the side of the depositor. He has more reasons to refuse further fulfillment of obligations:

• the terms of construction and transfer of the building to operation are violated and the delay is more than 2 months;
• the quality of work does not meet the declared and the depositor makes significant claims.

The developer has the right to initiate the termination of shared construction if the investor has not made timely payment of the agreed contribution. In some cases, a delay is possible, but its period should not exceed 2 months.

Note! If the company does not meet the stated deadlines, it is obliged to warn the depositor in writing about this. He can either agree to the changes, or break the DDU unilaterally.

To terminate the contract, the investor must send a notice to the developer. It must indicate the reason and note that the agreement is terminated unilaterally. The expiration date of the document is the day the letter was sent. Now, within 20 calendar days, the developer is obliged to return to the account of the equity holder the amounts previously paid by him under the contract.

Forfeit and its calculation

If the termination of the contract occurs through the fault of the developer, then in addition to reimbursement of funds, the interest holder is additionally paid a penalty. Shared construction completely solves this problem, while a regular housing purchase and sale agreement may not take this issue into account.

The basis for the payment of a penalty may be the same reasons for which the contract is terminated: violation of deadlines and significant shortcomings (a crack in the wall or a hole in the floor). Also, a penalty can be collected in the case when the built apartment turned out to be smaller than indicated in the contract.

Important! The shareholder can demand both a refund of the entire amount paid + a penalty, or simply a payment of a penalty in addition to the housing received.

• the number of days of delay - counted from the date of delivery of the house specified in the DDU;
• the refinancing rate of the Central Bank of the Russian Federation at this moment - can be viewed on the official portal of the department;
• the cost of the apartment - indicated in the DDU;
• special coefficient - 1/150 for individuals, 1/300 for legal entities.

Now we need to multiply all these indicators:

1/150 x Sref x number of days overdue x cost of housing.

For example, with a contract value of 2 million rubles and a refinancing rate of 8.5%, the developer will have to pay about 1,130 rubles for each day of delay.

Fund

Many citizens who wish to take part in the purchase of an apartment would like to receive the most secure DDU agreement. What to pay attention to? 2017 brought some changes to this issue.

The practice of previous years has shown that the traditional civil liability insurance of the developer is not quite effective. Therefore, from January 1, 2017, when building new facilities, each developer is obliged to contribute certain amounts to the fund of participants in shared construction. All money accumulated in this fund will be used for compensation payments to those investors who suffered from the sudden bankruptcy of the developer.

Another item of the fund's expenses may be the continued financing of construction. In this case, compensation will be paid to a new developer who has assumed the obligation to complete the construction of the building to replace the bankrupt "comrade".

Insurance

Those who signed contracts before the beginning of the current year are protected by shared construction insurance. The norm has been in force since 2014 and excludes the registration of a DDU without a developer's liability insurance contract. True, this applies only to those organizations that conduct their activities in accordance with Federal Law No214.

Important! If, when buying an apartment in a new building in Novosibirsk or another city, you did not conclude a DDU, but another type of contract, you can not count on the protection of 214-FZ.

If permission to build a residential building was received by the company before January 2014, then the norm on compulsory liability insurance remains at the good will of the developer.

Any contract has many nuances. DDU 214-FZ was no exception, what should I pay attention to when signing this document? Here are a few highlights:

1. If the registration and signing of the contract is not carried out by the developer himself, but by his representative, make sure that he has legal grounds for this. Notarized powers of attorney can be considered as such. Carefully study the documents and figure out exactly what powers are delegated to the representative.
2. When signing the contract, make sure that it contains a clause stating that the developer cannot arbitrarily change any documentation.
3. Carefully study the list of force majeure cases. Make sure that it consists of really "insurmountable" obstacles and does not contain anything superfluous.
4. Check that the contract contains a statement that the object is not considered to be of high quality until it is put into operation.
5. The DDU should not contain clauses on the conclusion of additional agreements with third parties, for example, with a specific management company.
6. Make sure that you clearly understand what shared construction of apartments is and what important points the contract should contain. If the absence of at least one of them is found, the developer will have reason to invalidate the document.
7. Remember that the DDU is not gaining force after signing, but from the moment of state registration. So giving money to the developer up to this point can be dangerous.
8. Since DDU does not have a clear, legally established form, many developers invent their own clauses for it, which are completely unprofitable for the depositor. Finding them on your own is often not possible. The way out of the situation may be to attract a lawyer who specializes in this particular area. His consultation will cost much less than the possible consequences of signing an agreement with "pitfalls".

Note! A thorough and most detailed analysis of the DDU is possible with the involvement of our company's specialists. By applying for a free consultation, you can get significant preferences on this and other issues.

Another point worth paying attention to is the jurisdiction under the DDU. In accordance with the law, the depositor has the right to independently choose the court for filing a claim. In order to deprive citizens of this opportunity, some developers fix the address of a particular institution in the DDU.

A visit to the court indicated by the developer may be completely unprofitable for the equity holder. For example, the judicial authority may be located at the place of registration of the developer, in another city or region. By signing such a DDU, the interest holder automatically agrees with the proposed "rules of the game". Subsequently, this can become a significant obstacle to filing a claim in the chosen court.

DDU is a fairly complex document with a huge number of nuances. Do not trust the promises of developers too much, because their main task is to "knock" money out of you. To protect yourself as much as possible, it is best to use the advisory services of experienced professionals. This is the only way you can be sure that your money will not be wasted.

FZ-214 video from experts

A selection of expert videos on the equity participation agreement, 214-FZ, as well as how to properly draw up a DDU and enter into equity construction.

The attraction of funds from citizens and legal entities for the shared construction of residential buildings and other real estate objects, as well as the emergence of ownership rights for such objects by participants in the process are regulated by a special federal law № 214 . It also establishes guarantees for the protection of the rights, legitimate interests and property of co-investors.

The guarantees of the law apply to those equity holders who have entered into agreements for participation in shared construction (DDU).

There are several such guarantees:

• Exclusion of the possibility of fraud, in which money is collected from citizens for the construction of non-existent facilities. To this end, Article 3 of Law No. 214-FZ prohibits the developer from entering into DDU with citizens up to:
• obtaining a building permit,
• publishing, posting and/or submitting a project declaration,
• state registration by the developer of the right of ownership to a land plot intended for the construction of an object (or a lease agreement, sublease of this plot).
• Elimination of the possibility of a "double" sale of apartments. Art. 4 of Law No. 214-FZ provides for the conclusion of a DDU in writing. Such an agreement is subject to state registration and only from the moment of such registration is considered concluded.
• In the event of bankruptcy (deliberate bankruptcy), the developer will not be able to leave the co-investors with nothing. According to Art. 13 of Law No. 214-FZ, for all participants in shared construction, from the moment of state registration, DDUs are considered to be pledged:
• a land plot owned by the developer on the right of ownership (or the right to lease, sublease this plot),
• and an apartment building and / or other property under construction on this site.

The activities of developers when attracting funds from citizens under the DDU are subject to state control by the authorized bodies of the constituent entities of the Russian Federation. In Moscow, these functions are assigned to the structure of the Complex of Urban Planning Policy and Construction - Moskomstroyinvest.

The decision on the distribution of apartments is made at general meetings of the board of housing cooperatives. At the same time, it is not uncommon for a house under construction to have several times fewer apartments than the shareholders who financed this construction, and those shareholders who joined the cooperative last can get an apartment among the first.

Attracting funds from citizens for construction within the framework of housing construction cooperatives (HBC) and housing savings cooperatives (HSC) does not provide for guaranteed protection of the rights of their members as participants in shared construction. The activities of housing cooperatives and housing cooperatives are regulated by the provisions of the Housing Code of the Russian Federation and 215-FZ “On Housing Savings Cooperatives”, respectively.

Federal Law No. 214: pros and cons

Reading time: 8 minutes

What is FZ-214?

Although not perfect, Federal Law No. 214 at least partially protects equity holders from unscrupulous developers. Let's see what troubles FZ-214 can protect against, and why many construction companies avoid working under this law.

What is FZ-214, and what does it protect against

Federal Law No. 214 "On Participation in Shared Construction of Apartment Buildings and Other Real Estate" was adopted in 2004. Prior to this, developers developed all contracts independently. The documents drawn up by the lawyers of the organization protected the construction companies to the maximum, leaving no guarantees to the buyers that the house would be completed, the apartment would not be resold a second time, etc.

After the adoption of FZ-214, many developers blamed it for its "dampness" and excessive demands, and therefore construction companies refused to work with it. It was possible to get away from the implementation of the law in various ways, including switching to the conclusion of preliminary sales contracts and preliminary equity participation agreements.

Amendments to Federal Law No. 214 gave impetus to an increase in the number of developers who adopted the law for execution. The new version of the document has become more flexible in relation to construction companies, but also toughened the punishment for them for working in circumvention of the law.

FZ-214 is not perfect, but the safest mechanism for buying a home for a shareholder. The contract, drawn up in accordance with the law, contains complete information about the construction object, its definition in accordance with the project documentation, the deadlines for delivery, the price, methods and terms of payment, as well as the warranty period provided by the developer for the object erected by him.

FZ-214 will protect equity holders from loss of funds if the facility under construction suffers destruction or damage. The developer will not be able to refuse to transfer the apartment to the heirs in the event of the death of the shareholder who signed the contract. If a private co-investor builds an object for personal needs, and not for commercial purposes, then he also falls under the law on the Protection of Consumer Rights.

As mentioned above, Federal Law No. 214 is imperfect. Taking advantage of some gaps, the developer can make special provisions in the equity participation agreement (DDU) that will work in his favor. It is better for the buyer not to sign the document until he has shown the papers to a qualified lawyer. In the event of a dispute, the shareholder may require the developer to amend the contract.

Benefits of Federal Law No. 214 for homebuyers

FZ-214 will protect against double sales, long-term construction or unreasonable appreciation of the apartment

• The risk of double sales of the apartment is reduced.

The guarantor of the reliability of the transaction is Rosreestr (Federal Service for State Registration, Cadastre and Cartography, earlier, until 2008 - the Federal Registration Service), where documents signed by the equity holder and the developer must undergo mandatory registration. Rosreestr simply will not be able to register the same housing under construction twice for different persons.

• FZ-214 reduces the risk that an object under construction will never be put into operation.

The fact is that, according to the third article of the law, the construction of a house cannot be started until the developer has a full package of permits in his hands, and the project declaration has not been published. However, in our country, as you know, the coordination of documents can take years. Therefore, developers are getting out of the situation, getting approvals gradually, during the construction of the facility.

• FZ-214 stipulates the rules for returning funds to the interest holder in the event that the contract is terminated by one of the parties.
• FZ-214 is more on the side of the equity holder, and not the construction company.

The size of the fine for the buyer, who delayed the next installment, and the developer, who did not give the keys to the apartment within the agreed time frame, according to the law, are incommensurable. If the shareholder has the opportunity to get off with a formal amount, then for the developer the fine will be very large. However, today developers often include additional clauses in the contract, which stipulate a high penalty for interest holders who delay contributions.

• FZ-214 does not allow the developer to deviate from the agreed project in terms of the height of the building, the layout of apartments, etc.

All this is stipulated in the contract. If in the end the apartment turns out to be, for example, smaller in area than stated in the papers, or the quality of work does not suit the buyer, he will have every reason to demand a reduction in the cost of housing from the developer.

• FZ-214 does not allow the developer to change the price per square meter at his own discretion.

The developer has the right to ask for a surcharge if force majeure circumstances arise: default, for example. However, the court will assess the circumstances and decide on the need to increase prices.

• FZ-214 clearly stipulates the reasons why the buyer can terminate the contract with the construction company and demand a penalty from it.

By law, the developer is obliged to return to the private co-investor the amount contributed by him under the equity agreement, as well as to pay penalties in the amount of 1/150 of the refinancing rate of the Central Bank of the Russian Federation at the time of the return of money for the use of funds.

Recall that Federal Law No. 214, although it is the safest mechanism for acquiring housing today, it cannot fully protect buyers from the actions of unscrupulous developers. The law will not be able to protect a construction company from bankruptcy, as well as speed up the construction of a house.

Cons of working on FZ-214 for the developer

FZ-214 strictly prohibits making changes to the project already in the course of construction, which can lead to long-term construction

• Federal Law No. 214 is far from convenient for all developers, since it imposes strict obligations on them and deprives them of some flexibility.

In some cases, the construction company may need to make changes to the project already in the course of construction. FZ-214 strictly prohibits such actions. Strict adherence to the letter of the law can lead the object to long-term construction.

• According to FZ-214, the developer does not have the right to meet the buyer halfway and reduce the price per 1 sq.m of housing.

If at least one apartment has already been sold in the house, then the developer is obliged to take the same amount from the buyers for the rest. Otherwise, equity holders who bought housing at a higher price will be able to request a refund of the overpaid money.

• FZ-214 does not clearly stipulate the rules for the acceptance and transfer of an apartment to a shareholder.

The law defines the terms when the buyer can start accepting housing, but does not specify when he must complete this procedure.

• FZ-214 puts developers in harsh conditions under which they become indebted to the state and equity holders, but do not have any tools to influence officials.

It is quite difficult to build residential facilities according to Federal Law No. 214. Therefore, many construction companies are trying to find workarounds and, characteristically, they find them. So, for example, some developers, in order not to tie their hands with equity participation agreements concluded under FZ-214, decide to build objects entirely at their own expense, and then put up apartments under sales contracts. True, such options are within the power of, perhaps, very large construction companies. Smaller developers often choose one of the "grey schemes" to work with.