The procedure for registering ownership of an apartment with a mortgage

In each description of the mortgage program there is a mention that the purchased living space must be registered. But a detailed description of what the correct procedure for registering ownership of an apartment with a mortgage should be is almost nowhere to be found. It seems that this process is noticeably inferior in complexity and importance to contacting a bank, so it constantly remains in the background. But in reality everything is a little different. Obtaining full ownership of real estate depends on how correctly the transaction is executed.

Buyers should take into account that mistakes made, even if they seem minor and do not cause interest, can cause serious problems in the future. Incorrectly registered housing will limit the ability of owners to dispose of property. Therefore, in order not to encounter problems, it is worthwhile to study all the features of the upcoming procedure in a timely manner, find out in advance what documents need to be collected, and find out in time where and when to apply. If you follow these recommendations, the procedure for re-registration of your home will be extremely clear and simple.

Sale of a mortgaged apartment or its donation

When buying an apartment using bank borrowed money issued as a mortgage, the property is pledged to insure risks. If the client stops paying and owes the bank a large amount, the lender will have the opportunity to recover the money by selling the collateral. But, in fact, a home purchased with a mortgage is the same property of the buyer as an apartment purchased with their own money.

You can often hear the phrase that mortgaged housing belongs to the lending bank. But that's not true. The owner of an apartment or house is a borrower who pays the bank for using credit money. This provision is regulated in the Civil Code of the Russian Federation, Art. 346 and Federal Law-102 Art. 37. The owner can do almost whatever he wants with his property, but with certain restrictions:

• You can sell an apartment only with the consent of the bank;
• You can also issue a deed of gift for mortgaged housing with the permission and consent of the creditor bank.

In addition, it is important to comply with additional conditions that are specified in the loan agreement.

The sale of living space purchased with a mortgage is possible according to two schemes:

1. Sell ​​the property along with the outstanding mortgage. In fact, this is a re-issuance of a mortgage to another borrower.
2. Close a bank loan, remove collateral. And only after that sell the property to the new owner.

Which scheme to choose depends on the amount of debt and the repayment period. Not everyone will be able to get approved for a consumer loan of several million.

Sale with bank consent

Before starting a sale or purchase transaction, the borrower must obtain the bank's consent. To do this, you should submit an application to the creditor bank. It happens that, in principle, the bank is not against the transaction, but does not approve of the candidacy of the new borrower, who will become the owner of the mortgaged home.

For example, the current owner of the apartment who took out the mortgage is a 35-year-old TOP manager of a successful company with a salary of 150 thousand rubles. And after the sale, the property will go to the 23-year-old unemployed or pensioner. Such a deal and the solvency of the new borrower are questionable for the bank, so it will not agree to this option. Either the new client has a bad credit history or a high debt load.

If the new borrower meets the bank’s basic criteria and his salary is sufficient to fulfill his obligations, the likelihood of approval is quite high.

Three ways to sell a home with a mortgage

The sale of mortgaged living space after repayment of the mortgage can be implemented in three ways:

1. Apply for a consumer loan in your name or a relative’s name. Use these funds to close your mortgage. Sell ​​the home and use the money received to repay a previously taken out consumer loan. In this case, you can resolve the issue without the bank’s consent. If all transactions are planned in advance, the overpayment of interest on a consumer loan will be minimal. It will take from several days to a month to implement the plan.
2. Agree with the buyer on an advance payment, which will be used to pay off the balance of the mortgage. In this case, the bank's permission will be required, because the real estate purchase and sale transaction is concluded before the property is withdrawn from the collateral. Not all buyers will agree to such a scheme, because it is very risky for the new home owner.
3. Conclude an agreement with the buyer under which he gives money to pay off the balance of the mortgage not to the borrower, but directly to the bank. In this case, the bank’s consent will also be required to conclude a transaction between the seller and the buyer. This scheme is used more often than the first two, when the amount of mortgage debt is still quite large. Banks and realtors will help both parties prepare documents and take into account all legal aspects.

The bank does not have the right to directly prohibit a borrower from selling an apartment. But he may not approve of the transaction. While the property is pledged to the lender, it will not be possible to sell the home without his consent or without raising other money.

How to apply through the MFC?

In general, registering a mortgaged apartment as a property is not much different from the usual one, the only difference is the presence of an encumbrance.

Simultaneously with the registration of ownership rights, the registration of a mortgage is also carried out, as a result, in Rosreestr two rights will be recorded for one object (a mortgaged apartment): property and mortgage of the bank.

What documents should I provide?

The first step is to collect documents . You will need to prepare all title documents and some from the creditor bank:

1. Applications from both parties to the transaction (filled out and signed at the place where documents are submitted to the MFC).
2. Passports of all participants.
3. A concluded agreement between the seller and the buyer.
4. The seller must provide title and title documents for this apartment.
5. Technical documentation for housing.
6. Documents confirming the absence of arrears in payment of taxes and utilities, payment of state duties.
7. The mortgage agreement that was concluded with the bank, on its basis, the encumbrance on the apartment is registered.

Of course, this is a general package of documents. It is best to first check with the registrar about what other documents may be required. Depending on the specific situation, the list may be more extended.

In order to submit a set of documents for registration at the MFC, you do not need to register in advance; an electronic queue is used.

Payment of state duty

The state duty is 2 thousand rubles (Article 333.33 of the Tax Code of the Russian Federation) . It must be paid before the documents are submitted to the MFC. This can be done through Sberbank ATMs, through a terminal at the MFC, or through the State Services portal. The buyer pays the state fee.

Making an entry in the Unified State Register of Real Estate

A record of the transfer of ownership is entered into the Unified State Register of Real Estate simultaneously with a record of the presence of an encumbrance in the form of a pledge. An extract is issued containing detailed information about the new owner of the property.

Registration deadlines

According to the Federal Law “On State Registration of Real Estate” (No. 218-FZ dated July 13, 2015), specific deadlines are established for the preparation of documents. It takes 7 days to register a mortgaged apartment in the MFC, of ​​course, provided that a complete set of documents is submitted. The date of entering data into the Unified State Register of Real Estate will be considered the date of registration of the right to real estate (Clause 12 of Article 16 of Federal Law No. 218-FZ).

Renting housing to tenants

The owners of an apartment purchased with a mortgage can rent it out to other residents, even if they have not yet paid off the bank. The bank's consent is not required in this case. 40 FZ-102. This is stated in the law, but the civil code allows creditors to introduce conditions into the contract that will prohibit the rental of mortgaged housing. And many banks use this right. Therefore, if the mortgage agreement states that renting is prohibited, the owner will not be able to transfer his living space to other tenants. Sometimes a condition is included in the contract that the bank’s consent must be obtained in order to rent out housing.

If the owner violates such terms of the contract, the consequences may be different:

• the bank will not check who lives in the housing and then it will be possible to pay off the mortgage at the expense of the rent paid by the tenants;
• the bank will find out that it is not the owner who lives in the apartment, but strangers and will oblige the borrower to repay the mortgage early.

It is not necessarily written in the conditions that it is prohibited to rent or rent. Other wording may be included in the text - “temporary transfer for use”, “use by other citizens without the consent of the creditor bank”. But this also applies to hiring. If the plan was to pay off the mortgage at the expense of the tenants, then you can find yourself in a difficult situation - there will be no money for early repayment, and the law will be on the side of the bank.

Useful tips and risks

Often, the borrower, having gone through the entire process of applying for a mortgage, searching and selecting a suitable residential property, signing a purchase and sale agreement and transferring funds to the seller, leaves the registration of ownership without proper attention. Moreover, being mistaken in the existence of such a right in relation to himself and not the bank, the borrower is deprived of the privileges of a property owner.

Therefore it is important to remember:

1. Firstly, it does not matter whether the apartment was purchased with one’s own funds or with the help of a mortgage loan, the owner of the property is the buyer. But any action in relation to residential real estate can be carried out only after agreement with the bank. If the ownership right is not documented, even registration of the owner will become impossible.
2. Secondly, upon completion of the fulfillment of loan obligations, it is worth devoting time and effort to re-registering ownership and entering into full disposal of residential real estate in order to avoid possible difficulties when using your right to a residential property (for example, when remodeling or selling an apartment).

Repair and redevelopment

Any owner can make repairs to his home, including those who bought an apartment with a mortgage. The bank will not dictate what type of repair to do, budget or luxury Federal Law-102 Art. 30. The main thing is that in the process there is no deterioration in living conditions and a decrease in the initial value of the property.

Significant redevelopment can lead to such consequences. A three-room apartment can become a two-room apartment, and a living space with a separate bathroom can turn into a studio apartment with a swimming pool. Formally, this is a change in the object of collateral that must be included in the contract. Therefore, some banks indicate that changing the original apartment design is possible only after obtaining permits from the authorized bodies.

In fact, all apartment owners are required to first obtain permission, and then break down walls or combine rooms. But some homeowners neglect this sequence and legitimize ready-made alterations. Therefore, creditors, out of fear of such actions on the part of the owner, write down a clause in the contract - obtaining consent for redevelopment from the bank.

Removal of encumbrance after state registration

The encumbrance on an apartment in the form of a mortgage, which is registered with the federal registration service when paying off the mortgage, is not automatically removed. To remove it, interested parties must go to the registration authority and write a statement (this is done after registering rights with Rosreestr) about terminating the mortgage.

The applicant must bring the following documents with him:

• passport;
• application for removal of encumbrance;
• mortgage agreement;
• a certificate confirming the fact of full fulfillment of obligations to the creditor.

Registration in the housing of relatives or strangers

The owner of the living space can register close relatives in the apartment: parents, children, spouse. This is not prohibited by Russian legislation. Although some banks may prescribe a ban on registration of unauthorized persons in mortgaged housing.

When submitting documents for registration to the Ministry of Internal Affairs, they do not specify whether the apartment is mortgaged or not. Therefore, formally, the property owner can draw up an agreement with the tenant or write consent for another person to live in his apartment. It will be difficult for the bank to influence this situation. But at the same time, it is important for the borrower to observe the line and not carry out mass registration of citizens in his apartment. Then you can freely register your children, parents or siblings. Housing Code of the Russian Federation Federal Law-188 Art. 31.

A number of restrictions for the borrower

It is clear that the Russian takes possession of the home, but he will not be able to dispose of it to his full potential. There are restrictions that you should know about in advance:

• Registration on square meters is most often allowed only to the payer; all other individuals must be approved through the bank.
• You cannot sell your home without the approval of the lender.
• It is not permitted to exchange or rent out the premises.

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• Carry out repairs, redevelopment and other activities that will entail changes in the assessed value of housing.

It is unlikely that the head of the department will want to sign an agreement for a major renovation of the premises, which will reduce the liquidity of the facility at first.

Sale of a mortgaged apartment at the insistence of the bank

In case of failure to fulfill obligations under the mortgage agreement and violation of the payment schedule, the bank may require the borrower to sell the mortgaged property. For example, the text of the agreement may indicate that the owner is obliged to sell the apartment and repay the loan if 3-6 regular payments are late.

Also, the creditor bank can prescribe many other reasons for early termination of the contract. This includes registration of unauthorized persons in a mortgaged apartment, rental of housing or unauthorized redevelopment.

Is it possible to change the terms of the loan?

This is possible in principle. If you cannot pay the amounts that you previously paid to the bank, contact your lender. He may offer to extend the terms of payments, and the monthly payment will decrease. In addition, you can use debt refinancing - getting a new loan to pay off the old one on favorable terms. Many of the responsibilities of a mortgage borrower are specified in the loan agreement with the bank. Therefore, it is important to carefully study this document and decide for yourself whether everything in it is clear and whether everything is satisfactory.

How to avoid late payments or being forced to repay early

If there is no money for the next payments due to a worsening financial situation, it is better not to wait for delays or to be forced to terminate the contract early at the initiative of the bank. The borrower has at least three options to get out of the situation:

• mortgage holidays;
• restructuring;
• refinancing.

Which option is best for the borrower to decide together with the bank employee. However, the most profitable way is to get approval for a mortgage holiday. But not everyone will be able to qualify for them due to legal restrictions on this type of deferment of payments. Federal Law-353 Art. 6.1-1.

If there are no rights to holidays, you should compare the conditions for restructuring and refinancing in your servicing bank or in another.

Mortgage holidays

From August 2021, all mortgage borrowers in the Russian Federation can apply for mortgage holidays legally. At the same time, the bank cannot refuse a borrower who has met all the conditions:

• an apartment purchased with a mortgage is the borrower’s only home;
• the total amount of the loan issued by the bank does not exceed 15 million rubles;
• the borrower applies for a mortgage holiday for the first time;
• The borrower's income decreased by 30% and he found himself in a difficult life situation.

Difficult situations include:

• registration as an unemployed person;
• receipt of disability of 1 or 2 groups;
• loss of ability to work for a period of 2 months or more;
• reduction in wages and other income;
• the birth of children, with a simultaneous decrease in income.

During the quarantine period due to coronavirus, borrowers can also ask for preferential mortgage holidays. They differ in terms of:

• the initial mortgage amount for Russians is up to 2 million rubles, for residents of Moscow - 4.5 million, St. Petersburg and the Far Eastern District - 3 million rubles;
• fewer reasons - a decrease in income by 30% or more compared to 2021 or loss of work with registration with the Central Employment Service.

However, you can apply for mortgage holidays due to coronavirus only from 04/02/2020 to 09/30/2020. The benefit will be given only for contracts that were concluded before April 3, 2020.

With any mortgage holiday option, the borrower’s credit history and rating will not be affected. In addition, the bank will not be able to demand early repayment of the mortgage and will not charge fines. Read more about mortgage holiday options in Brobank's articles.

Restructuring

If you are not eligible for a mortgage holiday, you can apply for a deferment or reduction in your monthly mortgage payment. The bank may offer restructuring with the condition of paying only interest for the use of loan money, without making payment on the principal debt.

Most banks have an individual approach to each borrower. The main thing here is not to remain silent about your financial problems and seek a solution in advance.

Please note: restructuring extends the loan term and increases the total overpayment amount. But at the same time, it helps to maintain the borrower’s credit history without delays, fines and penalties. This period of reducing the monthly load will help restore the family’s financial situation without selling the home, which is pledged to the bank.

Mortgage refinancing

Refinancing is the registration of a new mortgage to pay off an existing one with the same or another bank. This can be done if the offer is more favorable in terms of interest rate. It should be lower by at least 1.5-2% compared to current conditions. In addition, you should pay attention to the remaining loan term. It must be at least a year, and in some cases even half the term. This happens because with annuity payments, most of the money goes towards paying off interest at the beginning of the mortgage.

If you apply for mortgage refinancing to another bank, the borrower will be assessed as a new client. You will need to confirm your solvency and bring a current mortgage agreement. If the new lender bank is suitable for the borrower, it will transfer the money to the first lender bank, and the housing collateral will be transferred to it.

When refinancing with another bank, additional costs arise. For paperwork, re-evaluation of housing, transfer of money between banks and other costs. All of them should be taken into account before signing a new contract.

Some lenders approve in-bank refinancing. They take steps that are not very profitable for themselves, so that clients do not leave for other banks. In this case, the procedure will be much faster, and there will be no additional costs at all. Therefore, before contacting other creditor banks, check the possibility of refinancing with the servicing bank. But if the borrower is rejected, he will not be prevented from transferring the mortgage to another bank.

Do banks allow rentals?

Banks have different attitudes towards the borrower’s desire to rent out an apartment purchased with a mortgage . As for the legislation, on the one hand, renting out an apartment for the purpose of generating income is allowed, but on the other hand (Article 209 of the Civil Code of the Russian Federation) it is impossible to violate the interests of third parties. The third party in this situation is the bank.

First of all, you need to get permission from the lender. Quite often banks refuse and this is explained by fears that further sales will be necessary (due to the borrower’s debts).

Possible concerns when selling an apartment:

1. As a result, you will receive an apartment that does not correspond at all to the presentation in which it was registered as collateral. After all, some tenants behave completely unceremoniously in their rented living space, spoiling something, breaking it, and causing significant damage. Accordingly, the cost of housing becomes lower.
2. In general, losing the collateral itself, that is, an apartment, for example, may burn down due to the fault of the tenants.

There is also a compelling argument for the ban - the mortgage loan was issued for the personal needs of citizens, and renting out an apartment is already a business. For entrepreneurs, loans are issued on different terms and with different interest rates.

Another part of the creditors is more loyal to this issue and gives their consent.

Paying off your mortgage before it's due

All borrowers, according to Russian law, have the right to repay loans early, including mortgages. In case of early repayment, you must contact the bank to find out the exact amount of debt on the date of deposit. It is important that the loan is closed completely, and there is not even a small amount left.

It is not necessary to repay the entire mortgage amount early. You can deposit more amounts than stipulated in the loan agreement. In this case, the bank should also be warned. Because without the borrower’s order, the money may remain in the account until the next due date.

For example, the monthly payment amount is 20 thousand rubles, and the borrower contributes 30 thousand. Only 20 thousand are automatically withdrawn from the account, and the rest of the money may lie useless. In this way, it will not be possible to reduce the amount of interest and reduce the final overpayment. Therefore, it is so important to always notify the bank that the “spare” money should be used to pay interest or interest.

Sometimes the terms of the mortgage agreement may contain a clause that prohibits early repayment of the loan in the first six months or year. Please note these restrictions. In fact, the bank cannot prohibit clients from repaying loans and mortgages early. The main condition that the borrower must comply with is notifying the bank within 30 calendar days about the early deposit of money. In some banks or agreements you can find an even shorter period of 10-15 days.

We register the property after paying off the mortgage

In order to become the full owner of the property upon expiration of the mortgage agreement and fulfillment of all loan obligations, the owner must re-register ownership of the mortgage on a residential property.

Often the owner is in no hurry to deal with paperwork again, but it is important to remember that the mortgage encumbrance limits his rights and re-issuance of documents cannot be avoided.

Thus, in the case of registration of redevelopment or when selling an apartment, the owner will need to prove full ownership of the residential property.

Thus, upon full repayment of loan obligations, the borrower must contact the creditor bank with an application to transfer to him the mortgage on the residential property. Banks return the mortgage within 10-14 days. This period allows the bank to forward the mortgage note, since the document is often stored at the bank’s head office in another city.

It is important to know that in accordance with Part 2 of Article 17 of the Federal Law “On Mortgage”, the lender is obliged to transfer the mortgage “immediately”, therefore the borrower has the right to go to court if the lender excessively delays the deadlines for transferring the document specified by law.

After receiving the mortgage, the borrower can contact Rosreestr or the MFC at the location of the apartment to remove the encumbrance.

After 10 working days, the owner will receive a certificate of ownership with a note about the removal of the encumbrance. If the apartment was purchased after July 2021, then the owner will be provided with a new extract from the Unified State Register without mentioning the presence of an encumbrance.

Read more about the removal of encumbrances in our detailed article at the link.

Documents for removing the encumbrance

To remove restrictions from a residential property, the owner must provide a number of documents:

1. Owner's passport.
2. Application for removal of encumbrance (filled out on the spot).
3. A mortgage agreement with a lending bank, the obligations under which are fully fulfilled by the borrower.
4. Mortgage.
5. A certificate of full repayment of the mortgage loan indicating the debt in the amount of 0 rubles 0 kopecks (the certificate is issued by the bank upon oral application by the borrower. The certificate can be generated after 3-5 days from the date of receipt of funds to the loan account for full repayment of the mortgage debt).
6. A previous certificate of ownership, if the residential property was purchased before July 2021, or an extract from the Unified State Register, if the property was purchased later.

Will for real estate pledged

When a purchase and sale transaction is completed, the property immediately belongs to the buyer. The bank does not appear in the documents. But at the same time, an encumbrance has been placed on the apartment, which will be removed after the completion of mortgage payments.

The borrower with a mortgage is the owner of the property, so he can include the property in the will without the bank's consent. In this case, it does not matter who will bequeath the apartment to her husband, a businessman, or her minor son, a schoolboy. The bank will generally not know that the mortgaged housing appears in any will.

If the mortgage is not repaid at the time of the borrower’s death, upon entry into the rights of inheritance, the mortgage debt will also be transferred to the legal successors. Even if there is no will, the mortgaged property will still go to the heirs. And if there are several of them, then it will be much more difficult for them to divide both the property itself and the debts on it.

Read about how to draw up a will and what is needed for this in a separate article by Brobank.

Any heir has the right to refuse to inherit. This can be done in order not to pay the obligations of the deceased borrower if they turn out to be unbearable for the successor. But you won’t be able to get an apartment without paying your debts.

Scheme of the ownership registration process

So, after purchasing real estate, the borrower/buyer needs to contact Rosreestr at the location of the property. The organization’s employees will help determine the list of documents required to apply for property rights for a mortgage in this particular case.

The borrower can also make an appointment in advance to provide a complete package of documents. But since the time frame for preparing the required papers may vary, it is better to make an entry closer to the end of the document collection process. You can make an appointment remotely, which will significantly save time for the buyer and seller.

The next step will be to collect the package of documents required in a particular case. As a rule, the longest period for providing documents (consent of guardianship authorities, for example) does not exceed two weeks or 10 working days.

Once all documents are ready, you must pay the state fee. This can be done at any bank branch or at some ATMs. It is important to remember that some documents (for example, an extract from the house register) are valid for no more than 10 days. Therefore, you should not delay in paying the fee and making an appointment.

The buyer and seller come to Rosreestr at the appointed time. After visiting a specialist, the buyer is given a time to receive an extract from the Unified State Register confirming ownership. The document will indicate the fact of purchasing housing using credit funds and the fact of the presence of an encumbrance. The relevant data is entered into a common database, which makes it possible to find out the status of any residential property anywhere in the country.

If the purchase of residential real estate occurs with the involvement of third parties, then the realtor independently agrees on the list of documents with Rosreestr, signs up the seller and buyer for the submission of documents and accompanies them, which significantly saves the borrower’s time.

What documents can you not do without?

When registering a mortgage for real estate, you will need the following package of documents:

1. Passport of the seller and buyer of the apartment.
2. A contract for the purchase and sale of residential real estate using credit funds and a mortgage (transferred to the creditor bank until the borrower fulfills all loan obligations).
3. An extract from the house register with information about the citizens registered in the apartment (as a rule, the extract contains information that at the time of sale of the apartment all previous owners were discharged) and a certificate from the management company about the absence of rent debts.
4. Notarized consent of the spouse to transfer the apartment as collateral to the creditor bank.
5. Paid state duty for registration of property (since 2015, the amount of the duty is 2,000 rubles for individuals).
6. If the seller of a residential property has minor children, it is necessary to provide the consent of the guardianship authorities to the transaction (the document is requested by the seller from the relevant authority in advance, since it will take 14 days to issue the certificate).
7. Application for changes in the owner of the property (filled out on site by an employee of the organization and signed by the applicant).

Mandatory and optional insurances

Registration of a mortgage is possible only with insurance of the collateral - real estate. If the borrower refuses to insure the home, he will not be issued a mortgage. And the client can legally refuse life insurance, health insurance or title rights to property. All listed types of insurance are voluntary, not compulsory. Therefore, the bank cannot force the borrower to take out all these insurance policies.

Typically, if the client refuses additional insurance, the bank raises the mortgage interest rate. However, most banks offer comprehensive insurance. It already includes several risks. Such a policy is cheaper than individual insurances. For those who choose such a policy, the bank reduces the mortgage rate.

It is very important to calculate in advance which option is the most profitable for the borrower. It is important for some to insure the maximum number of risks in order to count on the insurance company in difficult life circumstances. For others, it is uncritical to increase the rate by 1-1.5% without taking out insurance policies.

Useful links:

1. Civil Code of the Russian Federation Art. 346
2. Federal Law-102 Art. 30, 37, 40.
3. Housing Code of the Russian Federation Federal Law-188 Art. 31

about the author

Klavdiya Treskova - higher education with qualification “Economist”, with specializations “Economics and Management” and “Computer Technologies” at PSU. She worked in a bank in positions from operator to acting. Head of the Department for servicing private and corporate clients. Every year she successfully passed certifications, education and training in banking services. Total work experience in the bank is more than 15 years. [email protected]

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Rights of minor children to an apartment

The rights of minor children to residential premises are protected by Russian legislation.
This leads to restrictions on the opportunities provided by mortgage lending. Mortgage banks do not take property owned by minors as collateral. This means that in order to take out a mortgage loan secured by an existing residential property, its owner must not be a minor. You cannot use an existing residential property as a down payment if the owner is a child or even if he is simply registered in this premises.

To ensure that the child does not lose his property irretrievably, the guardianship and trusteeship authorities exercise control. It is these bodies that give permission to conduct transactions with real estate (if its owner is a minor).

If a child only has a registration in the residential premises being sold, then there is an option to re-register him with someone close to him - until the moment of resale.

If the child is the owner of the residential premises being sold, then the guardianship authorities may issue permission to allocate the minor’s share of the property in the new residential premises (after the mortgage loan is repaid. You can find out whether it is worth paying off the mortgage early here).

There is another, more complicated way - exchanging shares of property with a relative. Thus, the child will have a share of ownership in the apartment of his grandfather, grandmother, and so on (in this case, only adults will be the owners of the apartment being sold). In this case, it is worth considering that this option is only possible if the new share is no smaller in size.

There is another way - if there are no accommodating relatives: this is the sale of existing housing, the purchase of something small. In this case, a mortgage loan is not taken out (the child is provided with the necessary own space). The remaining difference from the sale is used as a down payment to obtain a mortgage.

All these nuances do not in any way relate to the issue of child registration in residential premises (if it was purchased with a mortgage loan). Registration of a child in such an area is allowed without problems.

There are also positive factors in the “mortgage – children” connection. When the second and subsequent children are born, the parents become the owners of maternity capital. It can be used to pay off a mortgage loan (or as a down payment to obtain one). And Sberbank’s “Young Family” program says that upon the birth of a child, the borrower can be given a deferment in repaying the main debt or the loan term can be extended (until the child is three years old).

Comments: 12

Your comment (question) If you have questions about this article, you can tell us. Our team consists of only experienced experts and specialists with specialized education. We will try to help you in this topic:

Author of the article: Klavdiya Treskova

Consultant, author Popovich Anna

Financial author Olga Pikhotskaya

1. Olga
   09.23.2021 at 06:54 I am buying an apartment from a developer. But we are applying for a mortgage for our son-in-law in order to take advantage of state support for our third child (born in 2019). And I make a down payment and will pay for the mortgage myself, but I am not a co-borrower of the mortgage. Can I be included in the purchase and sale agreement as the owner?
   Reply ↓ Anna Popovich
   09.27.2021 at 18:20

   Dear Olga, no, in your case you can get registration. in a mortgaged apartment. This will require the consent of the bank that issued the mortgage.

   Reply ↓

Registration of ownership of an apartment with a mortgage in a new building

Having decided on the most important conditions and requirements, we should move on to consider the main stages that borrowers have to go through. To obtain ownership of an apartment in a new building with a mortgage, you will need:

1. visit the local branch of Rosreestr (at the location of the property);
2. apply for property registration;
3. hand over the completed package of documents to the employee who accepted the application;
4. wait until specialists carry out the necessary checks and make sure that there are no circumstances preventing the re-registration of housing;
5. find out the decision made (approval or refusal with a description of the reasons preventing a positive decision);
6. if refused, eliminate the shortcomings and re-apply to the state. institution;
7. If approved, wait until all the papers are ready.

It is important to clarify that Rosreestr employees check the authenticity of the documents received and the presence of obstacles to the transaction. The list of possible shortcomings is given above. The fact that inspectors cannot reject an applicant twice on the same basis deserves special attention. That is, after eliminating the shortcomings, the civil servant will not be able to reject the application for the same reasons that prevented him earlier.

Ownership of mortgages on the secondary market

The procedure for purchasing a home on the secondary market does not differ from what is described above, since the basic principles and instructions that guide Rosreestr employees remain unchanged. The only difference that matters to applicants is related to the package of documents. In this case, you will have to collect more papers, since the inspectors will have to check more important nuances and details. There are no other significant differences, requirements and conditions provided for by current legislation. But before submitting an application, it is recommended to clarify how complete the prepared package turned out to be.

Restrictions on the rights to housing purchased with a mortgage

Despite the fact that when registering an apartment with a mortgage, the property is registered as the owner, there will still be restrictions on rights. In this case, there is no possibility of complete disposal of this housing:

• the necessary procedure for agreeing with the bank on the registration of other persons;
• It is not allowed to sell the apartment until full payment is made;
• accordingly, exchange and rental will also be included in the list of prohibitions;
• the list of conditions for repairs with redevelopment and major repairs will be taken into account, since these actions with housing will affect its value (including liquidity in the market).

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When does a mortgaged apartment become a property?

When applying for a mortgage loan to purchase real estate, the borrower is faced with the question of how the ownership of the home is determined. There is definitely only one answer to this question - when a mortgage is issued, the apartment becomes the property of the borrower. All documents confirming this fact are drawn up at the conclusion of the transaction and registration. In some cases, purchasing housing on credit may limit the borrower's property rights.

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When does a mortgaged apartment become a property?

Having decided to buy a home with a mortgage, the borrower has to perform a number of actions: find an apartment, negotiate with the seller or developer, submit documents to the bank, conclude a mortgage agreement and a purchase and sale agreement. After this, he needs to go through the procedure of registering ownership of the apartment under a mortgage in order to become its full owner until the debt is fully repaid, the housing will be encumbered by the bank. How to register a mortgaged property, where to apply, what documents are needed? To register a mortgage on your property, you must submit an application to Rosreestr, which deals with such issues.

Maternity capital Military mortgage If a collector calls What can and cannot be done with a mortgaged apartment The place has come true - you have finally purchased an apartment. Let it be on credit, under a mortgage scheme, the main thing is that it is yours. All you have to do is remember a few rules of owner behavior, and you won’t have any problems. When a borrower buys an apartment using a classic mortgage scheme, it immediately becomes his property, remaining pledged to the bank.

This is all you need to know about renting an apartment with a military mortgage

The military mortgage lending program has been in operation for more than 10 years. Previously, they were given housing free of charge from the Ministry of Defense of the Russian Federation, but now this mechanism has become a little more complicated. The state has developed a detailed scheme for obtaining apartments, and now military mortgages are successfully implemented throughout Russia. The main requirement for obtaining it is that the borrower and the purchased property comply with all legal requirements. The main feature of a military mortgage is that the bank issues a loan to a serviceman, and the Ministry of Defense of the Russian Federation pays it. A down payment is also not required, because only participants in the NIS savings mortgage system receive a housing loan. However, if the borrower has his own savings, he will also be able to invest them and choose more expensive housing.