Home / Housing disputes / Emergency housing / Purchase price of emergency housing
Every year in Russia the list of emergency housing for demolition is replenished. Residents of such houses are not left without a roof over their heads. The administration offers homeowners two options: moving to new apartments or receiving a redemption price for a damaged property. It happens that compensation is the only option, since there is simply nowhere to evict citizens.
Many residents do not know whether they are entitled to the redemption price of emergency housing. And if so, can you count on serious money? What to do if you do not agree with the option proposed by the authorities? Don’t lie - it’s more profitable for the municipality to lower the redemption price and not pay the owners the full amount. Therefore, residents need to know how to calculate compensation, as well as what it consists of. We will consider this issue further.
What is the redemption price of emergency housing?
It’s easier to say that the redemption price is an alternative to new housing instead of emergency housing. However, there is a more precise definition.
The redemption price is the market value of a residential property in a dilapidated building for demolition. Payments are made by local authorities based on the assessment of apartments and auxiliary coefficients.
The recipient is all legal holders of residential premises, provided that the housing belongs to them by right of ownership. The principle is that an agreement is concluded with each owner - for relocation or for payment of compensation, whichever is preferable.
But a reservation needs to be made - to the legal owners, and not to tenants under a social tenancy agreement with the municipality. If the housing does not belong to a citizen, he can only count on an equivalent area in the new house (Article 86 of the Housing Code of the Russian Federation). The resettlement will be handled by the local administration, with which a new social rental agreement will have to be concluded. There is no talk of monetary compensation for employers.
Who is entitled to compensation?
When an apartment building is recognized as unsafe, the most popular issue is the provision of alternative housing. However, starting from 2021, not all residents have this opportunity.
No. | Who has the right to new housing |
1 | Tenants of apartments under a social tenancy agreement |
2 | Homeowners who are willing to pay the missing part up to the full cost of the property |
Therefore, the issue of redemption price in 2021 has become particularly relevant. Since the owner does not automatically receive the right to receive similar living space. He is obliged to pay the difference in price between the new apartment and the emergency one.
The following persons are not entitled to new housing and are guaranteed compensation:
- owners who cannot pay up to the full cost of the apartment;
- citizens who own other residential real estate;
- persons who refused to receive a new apartment.
How does the administration buy out emergency housing?
The targeted program for the resettlement of dilapidated houses does not contain any specific nuances regarding the payment of compensation for the demolition of housing. Usually the authorities use their own regulations. Assessment, calculations, contracts and payments to residents have been established for a long time - taking into account regional characteristics and the size of the budget. Let's see how this happens in practice.
Residential assessment
Before determining the market value of an apartment, you need to evaluate it according to all available parameters. For this purpose, the municipality draws up an agreement with the real estate market valuation bureau - on a competitive basis. Experts from the selected company prepare a report on the cost of apartments in a dilapidated building.
When assessing residential premises, experts take into account:
- characteristics of apartments;
- the area where the residential building is located;
- infrastructure development - schools, kindergartens, shops, parks, sports facilities, parking lots, etc.
- the presence of roads, entrances, exits from the territory;
- market demand for housing in the area...
How is emergency housing assessed at the time of eviction? You shouldn’t count on a fair assessment; in most cases, experts carry out orders from municipal authorities. Hence the discrepancies in the final indicators with the real situation in the housing market.
The evaluators prefer the following algorithm:
- Choosing a comparative assessment method (the so-called analogue method).
- Selection of objects with similar characteristics.
- Determining the price per 1 m² for each of the objects.
- Adjust the average value for 1 m² of living space.
- Multiplying this indicator by the area of the emergency apartment.
- The use of a reduction factor is 10-20%, and in some cases up to 50%, depending on the condition of the apartment.
In addition, the price includes the price per m² of land and house property - in accordance with the share of ownership. True, in most cases, “Khrushchev buildings” are subject to assessment. The common household property will already be included in the purchase price of the home.
Expert opinion
Dmitry Nosikov
Lawyer. Specialization: family and housing law.
Once the work is completed, the appraisers issue a detailed report. Next, the papers are sent to the municipal department of the local administration. The report contains information about the maximum and minimum price of an object. Of course, the municipality will pay the lowest amount. Emergency housing is much cheaper than apartments in habitable buildings in the same area.
Redemption procedure
Let us outline the steps to receive compensation for the demolition of worn-out and unsuitable housing:
- Determine the building's accident risk.
Expert opinion
Semyon Frolov
Lawyer. 7 years of experience. Specialization: family, inheritance, housing law.
Regions form a list of emergency facilities. If your home is already included in it, then you just need to wait for relocation. You can find out whether a house is on the list of objects for demolition on the Housing and Communal Services Reform website or on the official resource of the local city administration.
If residents see that the house is in poor condition, but has not yet been registered as unsafe, they can report this to the authorities. This is done with the help of an application to the interdepartmental commission - the body that is responsible for recognizing houses as unsafe and dilapidated. Usually the authorities themselves invite experts to check. But residents do not have to wait for their visit, but order an independent assessment and submit the report to the housing authority.
- Wait for notification from local authorities.
- Choose the option with compensation - notify the municipality about this, attaching documents about moving expenses, rental housing, realtor services, etc.
- Get a draft purchase price for the apartment.
- Agree or refuse the option proposed by the authorities.
- Wait in line and for the money transfer.
Subsequent calculations will depend on the policies of local authorities. However, according to the law, all homeowners in a dilapidated building, if they refuse to relocate, are required to receive compensation.
What documents are needed?
When contacting the administration, apartment residents need to prepare the following documents:
- passports or birth certificates for children;
- accident assessment report - if possible;
- documents of ownership - certificate of inheritance, privatization, purchase and sale agreement, etc.
- legal documents – in the form of a state registration certificate or an extract from the Unified State Register of Real Estate;
- registration certificate;
- a copy of an extract from the house register;
- applications for obtaining the purchase price for an apartment.
Appraisers may also request other documents in order to determine the exact market value of the damaged property.
What to do if the tenant does not agree with the purchase price
Expert opinion
Stanislav Evseev
Lawyer. Experience 12 years. Specialization: civil, family, inheritance law.
You should not hope that the total amount will be enough for alternative living quarters. But even in this case, the local government often underestimates the amount of compensation for emergency housing.
If the owner believes that the calculation was carried out incorrectly, then he has the right to defend his rights. The only option is to go to court.
To do this, a citizen must prove that his rights have been violated. The result of the appraisal company is used as evidence.
In accordance with Law No. 135 of 1998, the following requirements for a specialized company must be taken into account:
- availability of a license for this type of activity;
- inclusion of the appraiser in the unified register;
- availability of positive reviews and recommendations.
The provision of services is carried out under an agreement concluded between the expert and the customer. Payment of costs is entirely borne by the customer.
What to do if the administration underestimates the redemption price?
The size of the redemption price is set by representatives of the municipality. Often the figure is so far from reality that the owner of the emergency housing does not agree with it. He has the right to challenge the redemption price.
One way is to order a new independent assessment and then submit its data to the court for review . If it turns out that the cost is indeed underestimated, the court will oblige the executive committee to pay the copyright holder in accordance with the expert opinion. But as practice shows, such cases drag on for more than one month. It is important not only to conduct an examination, but also to prove the legality of the data provided. Without a competent lawyer, this will be extremely difficult to do.
How to calculate the purchase price of an apartment?
In accordance with Art. 32 of the RF Housing Code, the redemption price consists of the following factors:
- market value of the apartment;
- the value of the share of common property that belongs to the owner;
- moving expenses;
- expenses for registration of ownership of new housing;
- housing rental costs for the period of selection of a new apartment;
- losses that a citizen will incur in connection with the termination of the lease agreement (if the apartment was previously rented out).
Important! The owner of an apartment in a dilapidated building has the right to receive funds not only for housing, but also for the land near the house, and for a share in the common property (entrance, attic, basement).
Compensation is established by decision of the local government body. If the owner does not agree with the amount of compensation, he has the right to contact a specialized organization.
Arbitrage practice
The courts are considering litigation between copyright holders of dilapidated apartments and local administration officials. When considering disputes, the courts focus on Federal Law No. 135 “On Valuation Activities in the Russian Federation”, and also rely on the Review of Judicial Practice, approved. By the Presidium of the Supreme Court of the Russian Federation on April 29, 2014.
The vast majority of disputes are due to the low redemption price from the state. Appraisers do not take into account additional criteria and omit shares in common property, land plots and major repairs. The last problem is especially acute. The plaintiffs are demanding that they be reimbursed for payments towards major repairs to the dilapidated house.
Example:
The court considered the claim of citizen Yudin demanding a recalculation of the redemption price for an apartment in a dilapidated building. The plaintiff insisted that the administration of the city of Volzhsk offered an irrelevant amount without taking into account many factors. Yudin also attached an expert opinion. The report stated that the house was indeed considered to be in disrepair; appraisers applied a reduction factor of 40% of the final price. But instead of 1,300,000 rubles, the authorities for some reason offered only 870,000 rubles. The truth was established, the court ordered the local administration to pay Yudin 1,300,000 rubles.
Nobody knows why the payment of compensation for the demolition of a house takes so long. Apartment residents need to correctly assess losses, know their rights and be able to insist on what is right. Mistakes can lead to loss of money and financial bondage. Often the authorities simply scare people, persuading them to sign an unfavorable contract for the purchase of residential premises. The amounts mentioned have nothing to do with reality - out of despair and fear of being left without any money, the owners are forced to agree.
If you encounter problems, write to our lawyers. The site’s experts will help you calculate fair compensation, challenge the actions of the authorities and receive the amount within the specified time frame.
See the lawyers' answers about what price to ask the authorities for emergency housing:
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Author of the article
Maxim Privalov
Lawyer. 2 years of experience. I specialize in civil disputes in the field of housing and family law.
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