Is it possible to buy an apartment for maternity capital from relatives in 2021

In our country, the maternity capital system has been in place for quite a long time, allowing us to solve a number of important issues in family life.
In particular, you can use it to solve your housing problem by spending allocated funds to purchase a house or apartment, or use these funds as a mortgage loan payment. However, due to the fact that these funds are allocated by the state from the federal budget, the government imposes special requirements for the management of this money, making sure that everything happens within the framework of current legislation.

We will talk about whether it is possible to purchase housing with maternity capital from relatives in this article.

People often have numerous questions in this regard, because they received a certificate, but not many people know how to use it so that it does not contradict the law. In particular, the question arises regarding the purchase of housing from their relatives, i.e. Is this legal, and are there any restrictions in this kind of transactions?

Is it possible to buy an apartment for capital from relatives?

Pension Fund statistics show that the majority of families entitled to maternity capital spend it on improving their living conditions. The easiest option is to buy an apartment using your own savings, adding maternity capital funds to them. In this case, you will not have to overpay interest on the loan.

Buying a home from relatives can be beneficial in this situation. With this option, as a rule, the price is reduced, plus the buyer can be sure that he is purchasing an apartment without any encumbrances. But is it possible to buy real estate from relatives and pay with maternal capital?

Russian legislation does not prohibit purchase and sale transactions between members of the same family. Even if we are talking about children and parents or husband and wife. However, in the situation of buying an apartment from close relatives, you cannot count on compensation and targeted payments from the state. In the case of maternity capital, such a transaction will be regarded as an attempt to illegally cash out a target payment.

The Civil Code defines closely related relationships. Persons of this degree of relationship include:

Spouses.
Parents and their children, including adopted children.
Grandchildren and grandparents.
Half-brothers and half-siblings.

All other relatives are not close. Those. if a husband buys an apartment from his wife, he will not be provided with maternity capital for the transaction, but if he decides to purchase it from his mother-in-law or cousin, the funds will most likely be allocated to him. If the Pension Fund employees do not see any other violations in the transaction.

Why might such a deal be rejected?

When figuring out whether it is possible to legally buy a house or apartment from parents or other relatives, one should not lose sight of the possible reasons for the refusal of the Pension Fund. These include the following grounds:

Housing purchased with maternity capital is located outside the Russian Federation;
Not all documents have been submitted or are completed incorrectly or provide unreliable or contradictory information;
The property does not meet technical, sanitary requirements and the minimum square footage per person for the region;
When purchasing a share of a house or apartment, this share is not isolated from the rest of the premises;
Mandatory shares have not been allocated to children or there is no agreement on mandatory allocation;
The transaction is concluded between spouses;
The fact that the sale was fictitious was revealed;
The certificate has expired.

In addition, even if you have a family certificate in hand, the right to state assistance under it can be lost in the event of the death of a child under the age of three, when the child’s citizenship is changed or the right to adoption is revoked, when the guardianship period expires and when the recipient of the certificate dies.

The legislative framework

The main legal act that regulates the use of maternity capital funds is Federal Law of the Russian Federation No. 256 (dated December 29, 2006). This regulatory act establishes the procedure and purposes for spending money.

Letter of the Ministry of Economic Development No. d23-3764 (dated September 22, 2010) is directly devoted to the issue of purchasing an apartment from relatives using maternal capital funds.

Art. 37 of the Civil Code of the Russian Federation regulates the disposal of the property of a ward. In relation to maternity capital, this will be the property of minor children.

Necessary conditions for purchasing a home

Conditions for purchasing a home

To purchase real estate using maternal capital, the owner of the personal certificate will need to contact the territorial branch of the Pension Fund of Russia. It is the Pension Fund that directly distributes funds and performs the functions of a supervisory body.

No matter who the owner of maternal capital purchases real estate from, he needs to know that certain requirements are imposed on the purchased housing:

The property should not be classified as emergency housing or subject to forced demolition in the near future. To inspect an apartment or house, Pension Fund employees now not only check technical documentation, but also go directly to the location of the property.

The purchased housing must be located on the territory of the Russian Federation.

Additional conditions apply to the transaction itself. According to Federal Law of the Russian Federation No. 256, if the purchase of housing is carried out using targeted payment funds, in such housing all family members must be provided with equal shares in the property. Both spouses and minor children that the owner of the certificate had at the time the right to maternal capital arose are taken into account. It does not matter what part of the funds was spent. This does not have to be the entire amount.

Another important detail is the prohibition on purchasing a share in an apartment if it is not an isolated premises. Those. You won’t be able to buy a share in a one-room apartment. But the Pension Fund will provide funds for the purchase of one room in a communal apartment.

Maternity capital: improving living conditions and transactions with relatives

Since 2007, Russia has had a system of assistance for families in which two or more children were born - maternity capital.

Content

1. Indexation of maternity capital 2. What and how much can you spend on? 3. Is it possible to buy housing from relatives? 4. When the Pension Fund refuses to transfer funds 5. Position of the Supreme Court 6. Legal advice

✔️1. Indexation of maternity capital

The amount of maternity capital increases every year depending on inflation; now it is indexed by another 3% and amounts to 466,617 rubles. (Federal Law No. 380-FZ dated December 2, 2019). Please note that indexation applies to all amounts of maternity capital not spent by parents, regardless of the date the certificate was received: that is, if the certificate was received in 2021 and 50% of the amount was spent, the remainder increased by 3% from January 1, 2021. You can obtain accurate information about the balance of the amount at the Pension Fund branch at your place of residence.

✔️2. What and how much can you spend on?

To use maternity capital, you first need to obtain a certificate, and this can be done both through the MFC and through the Pension Fund of the Russian Federation, providing a certain application and attaching the required documents. According to Art. 7 Federal Law “On additional measures of state support for families with children” dated December 29, 2006 No. 256-FZ, people who have this certificate have the right to spend their maternity capital at once or in shares and strictly on certain tasks:

1) improvement of living conditions; 2) formation of a funded pension for women; 3) payment of education for the child (children); 4) purchase of various goods and services for disabled children; 5) receiving a monthly payment (for families in need).

In this case, parents have the right to choose one or more of the specified payment purposes, as well as spend the entire amount or only part of it at once.

✔️ 3. Is it possible to buy housing from relatives?

Of course you can, both an apartment or a house as a whole, and a share in the ownership of them. There are no direct prohibitions on such transactions in the law. Housing purchased or built with the help of maternal capital should be registered as the common property of both parents and all children and the size of the shares should be determined by signing an agreement (Article 10 of the Federal Law “On additional measures of state support for families with children” dated December 29, 2006 N 256-FZ). What you definitely shouldn't do:

1) enter into transactions with a spouse;

2) spend maternity capital on the purchase of apartments, since this property is not considered residential.

The key thing to remember when concluding a deal is that as a result, the children’s living conditions should improve in reality, and not just on paper.

✔️ 4. When the Pension Fund refuses to transfer funds

The Pension Fund may refuse to transfer funds if it suspects fraud. Quite often this concerns the purchase of housing from parents. So, a young family with children lives with the mother (father) of one of the spouses and wants to buy an apartment (share) from their parents and continue to live together, and the money transferred to the parents will eventually be spent on something else (for example, on repairs) dachas or buying a car). In fact, living conditions very often are not even planned to be improved, and the Pension Fund of the Russian Federation refuses such transactions, because this is an inappropriate cashing out of maternity capital and, in fact, fraud.

✔️ 5. Position of the Supreme Court

The Supreme Court of the Russian Federation confirms the legality of transactions using maternal capital between relatives. Thus, in its Ruling No. 84-KG15-8 dated September 15, 2015, the Supreme Court indicated that the plaintiff lawfully used maternity capital to pay for a deal with his parents, because as a result, the children’s living conditions were indeed improved. The court separately indicated that it was coming to this conclusion because the purchase and sale agreement between the co-owners established the procedure for the use of each living room in the apartment, and most importantly, for M.A. Strunkova. and her minor children were given two living rooms for use, which means the deal was legal.

✔️ 6. Legal advice

In order for your contract for the purchase and sale of housing (share) from your relatives to be more likely to be approved, it is necessary to include such conditions that clearly define how your living conditions and the living conditions of the child will actually change for the better (for example, the child will have a separate room).
But if the Pension Fund of the Russian Federation still does not give you permission to use maternity capital to purchase housing from your relatives, you must receive an official refusal with an explanation of the reasons, which will allow you to subsequently appeal this refusal of the Pension Fund in court. You might be interested in:

Division of property without court
Division of property through court
Termination of the contract at the initiative of the customer
Additional agreement on termination of the contract

Read us where it is convenient for you:

Instagram
Yandex.Zen

Purchase procedure

The transaction to purchase real estate from relatives does not have any significant differences from other similar transactions. First, you should decide on the property that the family intends to purchase. View all technical documentation to understand whether the property meets the requirements of the Pension Fund in terms of its characteristics.

The property owner and the buyer enter into a purchase and sale agreement with a deferred portion of the payment.

Next, you should contact the Pension Fund to clarify the full list of required documents. Then the owner of the certificate collects all the necessary documentation and submits an application to the Fund.

The application is considered for a maximum of one month. During this period, Pension Fund employees not only check the documentation, but also inspect the property that the applicant is going to buy.

If the decision on the issue is positive, within the next month the Pension Fund transfers the funds to the account of the former owner of the apartment. Those. The buyer is not provided with money directly.

Having purchased an apartment, the new owner applies to Rosreestr, where, on the basis of title documents, the housing is registered as shared ownership. Each owner, including minor children, is provided with a certificate of ownership of the property.

Afterwards, the applicant once again applies to the Pension Fund. Here you will need to present an extract from Rosreestr indicating shares in the apartment.

Documents for purchasing real estate

Stages of buying out a share in an apartment using maternity capital

Since payment under the share purchase and sale agreement is made by the Pension Fund directly to the seller, it is important to comply with all the mandatory stages of preparing and conducting the transaction. The sales documents indicate that funds for payment come from state support, so issues regarding approval can be resolved by specialists within several months, but no more than three.

The first stage of buying out a share is collecting all the necessary documents. To complete the transaction you will need:

data of the parties to the contract;
information about real estate;
share value;
funds transfer scheme;
the procedure for transferring ownership of part of the home to a new owner.

All documents must be submitted to the Pension Fund, which will carry out the verification, and in case of a positive decision, the transfer of money. To consider an application for redemption of a share, the applicant will need to provide:

passport and SNILS;
certificate for maternal capital;
documents on marital status and presence of children;
application for disposal of materials;
an extract from the Unified State Register of Real Estate for part of the apartment;
notarial obligation to allocate a share;
contract of sale.

Upon expiration of the established period, the fund will make a decision on refusal or payment of financial assistance to improve housing conditions. Registration of ownership of shares is carried out in Rosreestr. This requires the presence of two parties to the contract.

Required documents

To purchase real estate through a purchase and sale agreement from close relatives, the applicant will need to collect a certain package of documents. You will need to contact the Pension Fund at least twice, and the list of requested documents will vary. Before submitting an application, you should check with the specific branch of the Fund for all information regarding document requirements.

First of all, an application will be required from the certificate holder. It is written in any form, but in compliance with the rules of office work. The application should indicate:

Addressee's name, i.e. PFR branch.
Information about the applicant (full name, date of birth, place of residence, civil passport details).
Civil status (whether married, divorced or single). It is necessary to provide links to documents: marriage or divorce certificate, if available.
If the applicant is married, you must provide the details of your spouse.
Information about the children of whom the applicant is a parent (full name, date of birth, place of residence, details of birth certificates).
Information about the certificate granting the right to receive maternity capital.
The main request is to provide a targeted payment for the purchase of an apartment, house or room. Here it is necessary to fully provide information about the housing that the applicant intends to buy (address, floor, number of rooms, total and living area, technical characteristics of the building, i.e. is it a wooden structure or brick, etc.).
Information about the owner of the property and the ownership of the property being sold.
The obligation to allocate each family member an equal share in the purchased apartment.
The current account number to which funds must be transferred if the application is approved.
Date and signature with transcript.

In addition to the application, the applicant will require the following documents:

General passport of the applicant, as well as the spouse, if any. A spouse's passport is needed only if he was such at the time the right to receive maternity capital funds arose.
Birth certificates of all children indicating that the applicant is the parent. If children are adopted, adoption certificates will be required. If one of the children has already reached the age of 14, their civil passport is needed.
Personalized certificate for receiving maternal capital.
Technical and title documentation for the apartment. An extract from Rosreestr and BTI will be required.
Purchase and sale agreement between the applicant and the owner of the apartment. The latter's obligation to provide full possession of the property after the final transfer of funds.
Payment documents (receipt, bank statements), if part of the funds for the purchased housing has already been paid.
Consent of all family members over 14 years of age to the transaction.
Notarial obligation of the applicant to allocate equal shares in the apartment to all family members after its purchase.

After the transaction is concluded, when applying again, you will need an extract from Rosreestr indicating the size of the shares that all owners will have in the new housing.

You can also purchase an apartment from relatives through mortgage lending. In this situation, the Pension Fund of the Russian Federation will additionally require the applicant to enter into an agreement with a credit institution. In this case, the scheme will change slightly. First, you will need to take a certificate about the amount of funds in your account with the Pension Fund, then present it to the bank. Next, enter into a loan agreement and add it to the main list of documents. In this case, the money will be transferred to the bank.

Pitfalls and tips

Transactions with relatives are far from being as simple and harmless as many people think at first glance.
Judicial practice shows that it is between relatives that conflicts related to the purchase of housing most often arise. Therefore, it is very important to approach the design as responsibly as possible, carefully and slowly, so that on all points there is no reason to find fault with you later, even if nothing indicates a possible conflict. In addition, not every owner, even if it is a dear aunt, for example, may want to wait so long for a full financial settlement, which comes two or even three months from the date of the transaction. However, there is no absolute guarantee that the Pension Fund will approve it. In case of refusal, you will have to pay the missing amount from your own funds, and you may not have them, which will require you to urgently take out a loan or loan from someone.

Unfortunately, the integrity of the seller, including a relative, cannot be guaranteed either. It can hide the fact that a currently discharged prisoner has the right to live in the apartment you purchased. The Pension Fund does not always detect such nuances in a timely manner.

A very painful pitfall can be your agreement to underestimate the cost of housing in the contract, even if you hand over the amount more. By doing this, you do not win anything - you are doing a service to the seller, who will pay less tax, but if he decides to cancel the transaction, he will return to you the exact amount specified in the contract and you cannot demand anything more by law.