What to do after accepting an apartment with a mortgage? The contract with the bank has been signed, the house has been completed, and things can be transported. But a lot of troubles await the happy new settler. He will:
- accept an apartment from the developer by signing a deed;
- make an assessment;
- sign and register the mortgage;
- register property rights in the prescribed manner;
- insure the collateral.
And you should not neglect the opportunity to receive from the state part of the money paid for the apartment and as interest to the bank. Let's consider what and how to do next.
Common Misconceptions
Some buyers believe that signing an agreement with a bank or seller automatically secures ownership. But in order to manage real estate, register on square meters, you must go through the registration procedure in the Unified State Register of Real Estate.
Another number of bank borrowers believe that they will have ownership rights after the lender receives the last penny under the agreement. Before that, the apartment belonged to the bank. The opinion is erroneous and contradicts regulations. It is better not to deal with banks that claim otherwise. You can pay off millions in debt and find out that the home belongs to a completely different person.
You can contact the Registration Chamber as soon as the developer issues the documents required by law. Only the mortgage note is signed by the bank. The buyer, until the debt to the creditor is repaid, cannot dispose of the property without his knowledge.
The registration process is regulated, described in legislative acts and regulations. The buyer is required to follow a certain procedure and obtain timely certificates and confirmations.
Reputation is worth a lot
Pay attention to how many houses the developer has built before. Were there any problems and what kind of problems during the construction of other real estate projects? Who is behind the developer? If it's an influential political figure, what are the chances that it won't be removed before the house is built? It’s good when the developer is backed by a reliable company with a good reputation. Many companies register a new legal entity for the construction of a new house in order to minimize risks. It is necessary to check who the founders of this legal entity are. See how to do this here.
How to rent an apartment in a new building
The main document for the shareholder is the transfer and acceptance certificate. Without it, you can forget about registering with the Unified State Register of Real Estate. Before transferring apartments to owners, the developer is obliged to formalize:
- a protocol establishing the distribution of living space related to a given house (complex of buildings);
- registration certificate received from the BTI for the facility as a whole. Sometimes the developer issues passports for apartments as well. But the buyer may be charged an additional fee for this;
- permission to commission;
- act from the State Administrative District (Architectural Administration);
- confirmation that the house is registered in Rosreestr.
In addition, the building must be assigned a postal address and zip code.
Important! Copies of all listed documents are issued to each shareholder. The buyer himself must have a DDU or DUPT in hand at the time of registration.
You should not count on the fact that in a month all the necessary entries will be entered into the Unified State Register of Real Estate. If there are hundreds of apartments in a residential complex, it will take the developer several months to prepare copies of permits and regulations.
Technical issues
If you are buying a home in the early stages of construction, inquire about the type of home being built. Beneath the exterior, it is sometimes difficult to tell them apart.
Brick houses have proven their reliability over the years. Nowadays, low-rise and luxury houses are being built this way; their cost is high, and construction takes longer.
The panels make it possible to build durable and warm multi-storey buildings in a short time. Their disadvantages: poor sound insulation and the impossibility of redevelopment.
Frame-monolithic buildings combine the advantages of the previous two. This type of building construction now seems to be the most promising. The load-bearing load falls on the reinforced concrete frame of the house, which makes it possible to plan the layout of the rooms as the future owner wants, and each wall can be demolished.
Next, you should find out what material the walls and interior partitions will be installed from.
Bricks or blocks of various types can be used here. Brick is the best material: warm, durable, easy to screw in screws. Silicate blocks are environmentally friendly. Blocks produced by foaming have some peculiarities: they are not time-tested and are difficult to hammer a nail into.
It is also better to ask in advance regarding the decoration of the apartment. There are three possible options here. If the apartment has no finishing, the buyer will receive a concrete floor, unleveled walls and very simple glazing, an electric meter and wires.
During the rough finishing, the walls are level, the floor is cement screed, switches and sockets are installed, double glazed windows, slopes are formed, and there are window sills.
Full finishing means that such an apartment has everything you need to move into.
It is important to find out how many apartments will be on the site, what elevators will be installed, how many there are and where they will be located. And inquire about the locations of garbage chutes. The sounds of the elevator and the rattling of the garbage chute lid can cause a lot of inconvenience, especially at night.
The act of acceptance and transfer. What you need to know when signing
Until the shareholder has signed the acceptance certificate, he will not be given the keys to the apartment. It will not be possible to begin the repair or registration process.
Important! Check the quality of the property before signing documents. Subsequently, it will be necessary to prove that the housing is not suitable for use through the courts.
It is better to come to inspect the apartment during the day. Don't have your own experience in this matter? It wouldn't hurt to have the support of a professional builder. Ideally, the area is re-measured. Do not forget that the amount of property tax will depend on this parameter in the future.
Doors and window units, the strength of partitions, and their compliance with the plan are checked. If the contract provides for finishing, rough or final repairs, upon acceptance the quality of wallpapering or laminate installation is examined.
If the deficiencies are significant, the act cannot be signed. Problems that are not considered critical are indicated in a separate protocol appendix to the act. Otherwise, in the future it will not be possible to prove that there were deficiencies at all. The protocol is an argument in legal disputes with the developer.
The transfer acceptance certificate is drawn up in 3 (three) identical copies. One remains with the developer, one with the buyer. The third is for the registration chamber.
Important! The act should indicate not an abstract, but a specific apartment (address, area, floor, etc.).
Additional details of the act - information on how payment will be made if the money is not paid in full. If the calculations are completed, a corresponding mark is made.
Recommended article: Mortgage under two documents: registration procedure, documents, list of banks
If the buyer, for various reasons, avoids inspecting the apartment and signing the acceptance certificate for 2 months or more, the developer has the right to draw up the document independently. The act will be considered signed. The developer may not consider claims submitted later.
Instruction for the borrower on registering housing in a new building purchased with a mortgage.pdf
Do you have bank accreditation?
To build and deliver houses, the developer must have documents: a construction permit, an ownership or land lease agreement and a project declaration.
For verification, you can ask to see these documents, but it is better to ask about accreditation with banks - this is the banks’ assessment of the likelihood that the developer will deliver the house on time. Before accreditation, banks check the reputation and documents of the company, visit the construction site, and then monitor the progress of construction. If something does not go according to plan, accreditation will be revoked.
| Good answer | Bad |
| Yes, there is accreditation from Sberbank, VTB, Alfa Bank and Rosselkhozbank. | Not now, but the documents are already being reviewed by the bank. You don't have to worry, everything will be ready in a month. |
Accreditation can be checked on the bank’s website in the “Accredited New Buildings” section.
Accredited new buildings of Sberbank on the Domklik website
If a developer says that he has accreditation, but is not on the bank’s lists, this is a reason to be wary.
But even developers accredited by all banks may turn out to be unreliable, so it’s worth asking the following question.
Registration of a mortgage
For the lender, collateral is the best guarantee of a full refund. If at a certain stage the borrower stops paying, the bank sues and sells the apartment at auction.
To prevent the debtor from even the theoretical possibility of selling the loan security, gifting it to someone, etc., a mortgage is drawn up with subsequent registration in the Unified State Register of Real Estate. The USRN extract contains a note indicating the presence of encumbrances.
The client must apply for registration of a mortgage immediately after signing the deed with the developer . The bank will need time to prepare the document (up to 20 days). You definitely need to check with the manager about the package of documents for registration of a mortgage, because banks require a real estate appraisal. Why to evaluate an apartment with a mortgage is described in another article.
But usually the package of documents is as follows:
- acceptance acts;
- agreement with the developer (share participation, assignments);
- technical documents;
- loan agreement;
- Borrowers’ passports and marriage certificates;
- SNILS;
- assessment report.
Banks develop and use in practice their own forms of mortgages. But each contains information about:
- mortgagor, including passport data, additional information - for example, TIN or SNILS;
- mortgagee-creditor - data is entered in accordance with the charter (name, legal address, license number for the right to engage in lending activities, etc.);
- the subject of the pledge - the address, detailed description, document providing the basis for the emergence of ownership rights are indicated;
- estimated value and the appraiser who conducted the examination;
- amount of borrowed funds, loan agreement number, interest rate.
A mortgage can only be issued for an object that has been put into operation. If an apartment is purchased under a DDU, the bank may require an additional deposit for the period until the living space is completed.
An electronic mortgage can also be issued - this is discussed in detail in another article.
What to do with the mortgage after paying off the mortgage
Once the mortgage is received, the title must be registered.
Why you should contact us
Guarantee. Several cooperation options for your convenience. You pay only for the result! The liability of each of our appraisers is insured under an insurance contract.
Efficiency. By calling our company, you get in direct contact with a specialist. You don’t need to explain your problem several times and listen to ringtones on your phone endlessly. At any stage of interaction with the company - from the first call to specialists to the assessment - the Customer can count on a quick and effective solution to their issues.
Convenience. It is you who choose the day and time of inspection of the property being assessed. You don't need to reschedule any business. We will arrive when it is convenient for you.
Quality. In our company, each conclusion - assessment report - before printing, undergoes a two-stage check for compliance with the standards of expert activity - checked by a leading expert and the head of the organization.
Reputation. Why take my word for it? Look at the reviews from our Clients. Maybe your partner is among them?
Professionalism. We employ certified specialists who are members of a self-regulatory organization and have a license.
Good practice. More than 300 won cases.
What is needed to register the right to real estate in a new building
If the choice is made in favor of independent registration, you should prepare:
- State duty.
- Passports of everyone who will be the owner of the square meters. If one person acts on behalf of several buyers, powers of attorney with a list of actions to be performed are drawn up at the notary.
- DDU in one copy, if previously registered. If there are additions, changes, applications, copies are made of all of them. If the apartment is purchased from a shareholder, an assignment agreement will be required.
- Transfer and acceptance certificate - 2 originals.
- Loan agreement and mortgage.
If among the co-owners there are persons under the age of majority, you will have to obtain permission from the guardianship authorities for the mortgage.
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How to register property rights
What to do next after accepting the apartment? Prepare for your visit to the Registration Chamber with the necessary documents. And here are the possible options:
- registration is carried out by the developer, having previously received a power of attorney from each shareholder;
- buyers take the initiative into their own hands and resolve design issues on their own.
The first option may be unprofitable for the buyer for a number of reasons:
- the developer has nowhere to rush. The house is rented, apartments are sold, money is coming in. The fact that buyers cannot register on legal meters is their personal problem. In addition, one complex can have several thousand apartments. Preparation of documents takes a long time;
- the buyer, if the living space was purchased with borrowed funds, until the title and mortgage are registered, pays the bank increased interest (+ 2, 2.5 percentage points to the base rate).
After registering the right, it is necessary to write an application to the bank to reduce the interest rate, if this is provided for by the terms of the loan agreement.
Choosing the second option means that you have to go through all the bureaucratic procedures yourself. If the developer himself does nothing and does not issue documents to the shareholders, he will need to go to court.
6.9. Balance check
You need to look at the amount of profit, loss, receivables and payables. A bias towards losses and accounts payable may indicate that the company’s own funds are insufficient for the construction of the facility. The project declaration indicates the planned value of the property. Next, you need to correlate how many assets a company or group of companies has with the remaining cost of construction, which will ultimately result in the amount that the developer needs to complete the construction.
The same thing again: Let’s say that in the project declaration the developer estimated the cost of building a house at 5 billion rubles, while the amount of equity, which can be seen from the company’s balance sheet, is 2.5 billion rubles. Consequently, to complete construction, the Developer still needs to raise 2.5 billion rubles. Money can be raised from the funds of equity holders or loan funds. The greater the understanding of whether there is enough money to complete construction, the less risks associated with investing money.
Available methods for registering real estate in the Unified State Register of Real Estate
What to do after accepting an apartment in a new building? Register ownership of real estate. Available methods:
- directly through Companies House;
- At the MFC. If a particular city provides electronic registration, you can book a specific time. MFC employees do not check the correctness of filling out documents, the presence/absence of encumbrances and other possible reasons for refusal of registration. Their task is to accept documents and transfer them to the Chamber. Accordingly, the total review period is increased by 4 working days;
- Via Russian Post with a description of the attachment. The post office employee checks the documents and seals the letter. Taking into account the timing of delivery across the country, the process of receiving a response may take several months;
- Through the intermediary of banks. In particular, Sberbank has provided a special service for sending documents for registration in electronic format. Read more in the article - Pros and cons of electronic registration of a transaction in Sberbank
Recommended article: How to get a mortgage of 6.5 percent (new mortgage 6-5) - conditions, documents, refinancing
There are 5-9 days to check and carry out the procedure. If deficiencies are identified, the documents are returned to the applicant indicating the reason for the refusal.
Important! Documents for the same reason cannot be returned for correction twice.
6.5. Certificate of land ownership
The certificate should say something like the following, “permitted use of the land: for multi-apartment development or construction of a multi-storey residential building ....”
If the land documents indicate a different category of land, or another permitted use of the land, then the developer will need to re-register the documents, but this is not always possible, so this is also a certain risk. Under no circumstances buy an apartment in a conservation area, as such an object may be demolished in the future. Suffice it to recall the events at the Rechnik gardening partnership.
The land may be leased, therefore, there will be a record of this in the certificate. If the land is leased, this does not mean bad.
Payment of the state fee for registration
Regardless of the chosen method, before submitting documents, you must pay the state fee for completing registration actions. As of 2021, the buyer transfers 2,000 rubles . Basis - art. 333.33 Tax Code of the Russian Federation. The list of persons entitled to benefits when paying state fees is indicated in paragraphs. 24 clause 1 art. 333.33 Tax Code of the Russian Federation.
From 2021, it is not necessary to provide a payment order or receipt to Companies House. Employees independently check the availability of payment in the GIS GMP. The payer can present a receipt if less than 24 hours have passed since the transfer and only on a voluntary basis.
If the registration chamber employee insists on presenting a receipt, you can complain about him to higher authorities. Moreover, registration documents must be accepted even if payment has not yet been made at all. But within 3 days it is better to transfer the required amount. Otherwise, registration actions will not be carried out.
When paying the state fee, it is important to follow the following rules:
- Each owner contributes money on his own behalf and with a separate receipt. Payments for third parties are not accepted;
- if the premises have several buyers, the state duty is proportionally divided among everyone, including children. Two owners - each pays 1000 rubles, four - 500 rubles each;
- if a minor is under 14 years of age, legal representatives pay for him, but in the name of the child;
- There should be no errors in payments. An incorrectly written letter in a surname or given name is grounds for refusal of registration. It is possible to return an erroneous payment, but the procedure takes time;
- if the apartment is purchased as joint property by spouses, the fee can be paid by one of them.
What will we do if the deadline is delayed?
The contract contains an exact date for putting the house into operation, but construction is a large-scale project, so the time frame may take longer. For delays, buyers have the right to receive a penalty, but sometimes developers offer to sign an agreement to extend the deadlines in order not to pay.
| Good answer | Bad |
| You will receive a penalty - 0.01% of the cost of the apartment for each day of delay. We will also compensate for the payment of rental housing during the delay. | This is unlikely to happen, it has never happened before. As a last resort, we will sign an agreement to extend the deadlines. |
But in any case, the penalty will have to be obtained through the court.
Collateral insurance
What to do after accepting the apartment? After registering the title and collateral, it must be insured in favor of the creditor for an amount not less than the appraised value. The main risks are determined by the bank. This may be loss of ownership, destruction as a result of malicious actions of third parties or natural disaster.
Each insurer offers its own list of services and payment procedure in the event of an insured event. Banks create lists of accredited companies. The borrower is invited to insure the collateral in one of them.
If the buyer acts at his own discretion and purchases a policy from an unaccredited company, the bank may refuse to accept insurance. The inevitable consequence is fines and increased interest rates.
How to register an apartment purchased on the secondary market
If the apartment already has an owner (not a developer), the following is provided to the Registration Chamber:
- copies of passports of the parties to the transaction;
- application in the prescribed form (filled out by an MFC employee);
- contract of sale;
- documents on the basis of which it can be clearly established that the seller had legal rights to the apartment. It could be privatized, purchased, received as a gift or inheritance, etc.;
- agreements: credit and mortgage with all attachments;
- technical passport (optional);
- certificate of the number of residents (legally registered). It is possible to replace it with an extract from the house register (not necessary);
- certificates from resource supply organizations confirming the absence of debts (optional);
- permission from the guardianship authorities, if there are minors among the owners;
- consent to sale from the owner's wife, certified by a notary.
Important! The above list is not exhaustive. Adjustments are possible taking into account the specifics of the purchased object.
If we are talking about a private house or townhouse, you will additionally need title documents for the land plot.
Reasons for suspension or refusal of registration
The buyer collects documents, submits them to the Registration Chamber and after 5-9 days finds out that he has been denied recognition of ownership. There are many reasons for this. Let's look at the most common and significant ones:
- the documents came from an inappropriate person;
- the newly declared rights contradict those already registered for this property;
- registered encumbrances have been placed on the apartment. The object cannot be transferred to another person;
- Forged documents were submitted for registration, or the information contained in them is unreliable;
- the lender did not consent to register ownership (if the property was purchased using borrowed funds);
- the applicant did not provide all the required documents;
- the registrar has not received the requested confirmation and information;
- organizations that received interdepartmental requests lack the necessary data;
- documents were simultaneously received from several applicants to register transactions with the same property;
- the validity of the act or resolution on the basis of which the right of ownership arose was terminated in court;
- the boundaries of the land plot coincide with the boundaries of another plot that has a cadastral number. Either the land plot is located on the territory of another plot, duly registered;
- the land plot on which the residential building is built has a different purpose.
In total, the Federal Law of July 13, 2015 N 218-FZ “On State Registration of Real Estate” lists 55 reasons on the basis of which the Registration Chamber can return documents to the applicant without consideration.
Can I see your financial statements?
Financial statements provide information about a company's revenue, net income, and debt.
| Good answer | Bad |
| Of course, here is a link to key financial ratios and disclosures. | Why else do you need this?! In fact, reports are classified information. |
You need to look at the numbers in the “Net profit” line and compare it with the “Debt load” line. The profit indicator must exceed the debt indicator. It happens that large and reliable developers have debts - this is normal, you need to ask what these debts are and whether they affect the sustainability of the company.
When recognition of rights through court may be required
In a number of situations, the buyer of a home in a new building is forced to prove through the court his right to live in the purchased apartment. This happens if the developer:
- He does not independently resolve organizational issues and does not issue the necessary documents to shareholders, and avoids signing the transfer and acceptance certificate.
- Declared bankrupt. His property has been seized and is subject to electronic auction.
- Fails to fulfill obligations to the local administration, for example, to allocate living space for the resettlement of emergency houses. In most cases, square meters are offered as a means of payment for obligations. Filing a claim in a timely manner means you can stay in your apartment. If, for various reasons, the living space is nevertheless transferred to the administration or another creditor of the developer, compensation can be demanded based on a court decision.
The main thing when applying to the courts is to competently draft a statement of claim, indicate and argue your claims, and provide supporting documents.
The area around the house
It would not be a bad idea to ask about the construction of social infrastructure facilities and inquire about the future: what kind of development is planned in a few years, as well as whether there are environmentally harmful enterprises, railway tracks, landfills and cemeteries near the house.
If you are going to buy an apartment in a housing complex and your house is one of the first to be built, you need to be prepared to breathe cement and endure the roar of dump trucks and tractors in the coming years. Let us note that the 17-storey building will not be built earlier than in a year and a half, so the timing of the development of the complex should also be clarified.
Car owners will probably want to know whether parking is provided near the house and how many parking spaces are planned for one apartment.
When purchasing a home in a new area, ask the developer whether there are plans to build a school, kindergarten and when the landscaping will be done.
It is worth taking into account the environmental situation. You can ask the developer a question or look on the Internet for environmental maps of the area, which indicate all the harmful factors.
When and what documents to submit for tax deductions
In accordance with Art. 220 of the Tax Code of the Russian Federation, a citizen or resident of Russia has the right to a property deduction. A prerequisite is that the applicant to receive the money must be a personal income tax payer.
To know exactly when a buyer can apply to the Federal Tax Service, it is necessary to carefully study paragraphs. 6 clause 3 art. 220 of the Tax Code of the Russian Federation:
- if real estate is purchased under a standard purchase and sale agreement, then the benefit can be applied for in the year following the year in which the change of owner will be recorded in the Unified State Register of Real Estate;
- if the buyer is a shareholder, the right to deduction appears after signing the acceptance certificate. The year is ending and you can prepare for a meeting with Federal Tax Service inspectors.
Important! The benefit has no expiration date. You can become the owner of residential real estate in 2005, and apply to the Federal Tax Service in 2021. You will be able to return your personal income tax for 2021, 2021, 2021.
If you obtain a mortgage loan to purchase an apartment, you can count on a refund of part of the interest actually paid to the bank. As soon as the first amounts are credited to the lender’s account, you can collect documents for personal income tax refund.
As a standard, the new homeowner will be required to check:
- declaration 3-NDFL for the previous year;
- a copy of the Russian passport (pages with photo and registration);
- 2-NDFL certificate issued by the employer;
- an application in the prescribed form indicating the details for transferring money;
- a copy of the loan agreement with the bank;
- a certificate of interest actually paid and payment orders confirming the completion of payments, if we are talking about the return of interest;
- a copy of the purchase and sale agreement, acceptance certificate.
The Federal Tax Service is given 3 months to verify documents. If a decision is made in favor of the buyer, the money must be transferred to the specified account within a month.
Tax deduction for mortgage interest
Is it possible to do redevelopment when the apartment is under mortgage?
Is it possible to rent out an apartment purchased with a mortgage?
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Author:
Mortgage specialist Maria Yurievna Sokhan
Date of publication May 27, 2019 November 12, 2019
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