Redistribution of shares: apartment, house ownership, plot, drawing up and concluding an agreement

Redistribution of shares in a privatized apartment

According to Article 245 of the Civil Code of the Russian Federation, the privatization of apartments determines the size of the ownership right in equal proportions for persons living in the apartment at the time of privatization and who are one family, in accordance with the provisions of Article 35 of the Civil Code of the Russian Federation.

Certain conditions allow changes in proportions upward for some participants, and by decreasing them for others.

Such conditions occur when one or more co-owners claim additional space due to the responsible management of housing and the investment of their own money in it. This primarily concerns inseparable improvements that are made from the resource of the person concerned.

In this case, the will of the remaining owners, who have the right to express claims on the merits of the issue, are taken into account.

As a concession, it is allowed to provide funds; responsibility for payments is established jointly and severally, minus the proportional part of the funds belonging to the initiator of the inseparable improvements.

In other cases, co-owners refuse to change the proportions of ownership of living space, citing the refusal by the fact that they did not provide sanctions for repairs or reconstruction of the premises, refusing to reimburse material costs both in the form of monetary compensation and through redistribution of the volume of living space received. Such issues are referred to arbitration.

Redistribution of shares on a land plot

The procedure is regulated by Article 11 of the Land Code of the Russian Federation. If there is a house on the plot, this means that the scope of the right to the building proportionally extends to the privatized plot. In other cases, redistribution of shares is permissible:

drawing up an agreement upon initial registration;
by increasing shares by inheritance, purchase or gift;
court decision.

Any of the methods requires that the area under the house be divisible, that is, allow for independent allocation.

To do this, its area requires compliance with the regulations established by the regional administration. That is, each potentially allocated plot should not be less than the minimum established by the administration.

Expenses

The final cost of registering the redistribution of shares in an apartment depends on the number of stages required. Prices for services may vary throughout the country, as well as depending on specific companies.

Estimated cost of redistribution of shares

No.	Stage	Price
1	Legalization of redevelopment (already done)	from 35,000 rub.
2	Re-registration of the registration certificate	from 10,000 to 20,000 rub.
3	Drawing up a draft agreement	from 3,000 rub. (on our website)
4	Notarization	0.5% for state duty and from 6,000 rub. for technical and legal services
5	Registration in Rosreestr	2,000 rub.

Redistribution of shares in shared ownership rights

Cooperative apartments, garage cooperatives and summer cottages are jointly owned by members of the relevant legal entities. They are joint property of the condominium. The allocated scope of rights is regulated by the founder’s statutory documentation.

When selling or buying, transferring part of the property as a gift and other property transactions, the designated shares change.

In order to redistribute new property proportionately, it is necessary to obtain the consent of all members of the cooperative, dacha or gardening non-profit partnership. Consent is obtained by voting at a general meeting, with a majority of votes.

If the votes are distributed not in favor of the interested party, it is permissible:

receive monetary compensation for unidentified premises or footage;
consider the issue in court.

After the sanction for re-registration is passed by vote, the proportionate share is registered in Rosreestr.

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Redistribution of inherited shares

After the opening of the inheritance, the persons indicated in the testamentary disposition or who have priority by law - according to the degree of kinship (see Succession in inheritance) have the right to refuse to accept the inheritance. Unaddressed refusal or refusal in favor of one of the heirs is allowed.

If the person who refuses to enter into the inheritance does not indicate a successor to whom his part of the real estate goes, his amount of the inheritance mass is distributed among the remaining participants. The heirs jointly accept the freed volume of rights by increasing their shares.

Such a change in the inheritance mass changes in the process of conducting the inheritance case by a notary. After the expiration of the corresponding period, this increase in the scope of rights will be taken into account in the inheritance certificate.

The same happens if the heir is declared unworthy or dies without entering into inheritance rights. Their parts are added to the property of the remaining successors.

The increment procedure is regulated by Article 1161 of the Civil Code of the Russian Federation.

When a person specified in the will or one (several) applicants refuse to participate in favor of an established person from among the participants, the volume of the released inheritance is increased to the share of the specified successor.

Preliminary actions

Before entering into an agreement, you must ensure that the following conditions are fully complied with.

There are no disputes or conflict situations between shareholders regarding how their shares will be redistributed, that is, this procedure takes place on the basis of their peaceful agreement.
The shareholders agree to the procedure. So, if a private house is owned by parents and two children, then consent must be obtained from each shareholder.

How to draw up an agreement correctly

The agreement on the new distribution of shares is drawn up in writing. The owners will need to change the type of right, register updated shares, sign the document and register it with Rosreestr.

The agreement must include the following information:

document's name;
the address where the agreement is drawn up;
date of registration of the transaction between all owners of the property;
information about the participants in the transaction: passport data, information about the size of the shares due to them;
data on a residential building, land plot, apartment premises;
data on state registration of rights in Rosreestr;
the reason why owners redistribute shares in a house or land plot;
updated sizes of shares in land and other property, indicating which of the co-owners receives how much, whether the procedure is based on compensation or gratuitousness;
information that the property is not subject to any encumbrance, that it is not under arrest or a ban on the alienation of shares;
information about registration of changes;
a list of the rights and obligations of the participants in the procedure, including their right to challenge this agreement by initiating legal proceedings;
number of copies of the drawn up agreement;
signatures of each participant in the transaction.

Shareholders have the right to include other additional clauses in the text of the document if necessary. But still, experts recommend adhering to the established structure, since the legality of the drawn up agreement depends on this.

Options for real division of property

In most cases, the real division is relevant for land plots or private households. It is used less often for an apartment and almost never for any other type of property. In the usual manner, the property is simply physically divided into several parts (fences are installed on the site, new partitions are installed in the house). But in some situations, when it is not possible to actually divide a particular object, the parties can agree that the shares are redeemed or exchanged for other property. In fact, this will no longer be a separation agreement in its pure form, but it may include similar clauses.

The actual division of property with the simultaneous termination of shared ownership can be a rather complex process, especially when the property has many owners with different interests and parts of ownership. In such a situation, it is recommended that you first discuss the issue with experienced lawyers at our free consultation. We will be able to determine the main points of the division of property, elements that deserve attention, and even help with the support of this transaction.