What real estate transactions need to be certified by a notary?

In most cases, a notary is not needed for real estate transactions. The law defines only a few situations where you can’t go anywhere without his signature and seal. The notary’s tasks are to make the transaction safe and ensure legal purity. In what cases should you definitely contact a notary in order to avoid problems and not lose your rights to the purchased apartment, read the material.

Property in common shared ownership

For the seller: your share in the apartment or the entire home without certification of the transaction by a notary. The owners of the remaining shares must react somehow: refuse the priority purchase or agree to the sale. All shareholders must appear before the notary to sign the consent. The rule also applies to donations of shares. An exception is if all shares in the apartment are sold simultaneously through one purchase and sale agreement. In this case, a notary will not be needed.

For the buyer: Buyers who are married will have to deal with a notary. Spouses automatically become the owners of joint property by law. The purchase and sale document will partially have elements of a marriage contract, and it requires notarization.

What are the benefits of a notarized loan?

Borrowing money from an individual (legal entity) has significant advantages compared to a bank loan. As a rule, the bank requires a certificate of income, the involvement of guarantors, and collateral. In addition, the interest rate changes depending on specific conditions (income level, loan term), the decision can take a long time. If it is negative, an entrepreneur or private individual who urgently needs money will waste time.

At the same time, a loan agreement between individuals is certified by a notary on the day of application, which significantly simplifies the borrower’s task.

Moscow notary Kolganov I.V. comments: “The creditor more easily agrees to such a transaction, knowing that he receives guarantees of debt repayment through the use of the writ of execution mechanism. The debtor, in turn, protects himself from unfounded claims: unexpected increases in interest rates, demands to return the money ahead of schedule.”

The owner of the share or apartment is a minor

A trip to the notary is inevitable if the entire apartment or part of it belongs to a child . And it doesn’t matter whether these square meters were given to him as a gift, inherited, or whether he received a share in the purchase of housing using maternal capital. The notary is obliged to check whether the rights of the child will be respected during the sale. And at the same time, the law requires that the seller also obtain permission from the guardianship and trusteeship authorities.

Benefits of notarizing a loan

To protect yourself from possible troubles, the lender prefers to draw up an official document. Certification of a loan agreement by a notary provides many advantages:

• the text will indicate all the necessary details of the borrower (passport details, residential address)
• the interest rate for the use of borrowed funds and the procedure for its payment to the lender (usually monthly);
• the notary will check the borrower’s documents against the database of the Ministry of Internal Affairs and the bankruptcy register, which eliminates the falsification of documents;
• the parties are explained the provisions of the Civil Code of the Russian Federation on the procedure for granting and repaying loans;
• If the borrowers fail to fulfill their obligations, the lender may contact the notary for affixing a writ of execution.

A notarized loan agreement between individuals or, in the case where one of the parties is an organization, relieves the lender of the need to go to court if the borrower fails to pay the debt. The notary's writ of execution gives the loan agreement the force of an executive document. The creditor can submit it to the bailiff service or to the enterprise where the debtor works, as well as to the credit institution where the borrower has an account. The funds will be written off to repay the debt unconditionally.

The purchase and sale of housing takes place by proxy

It happens that the seller or buyer cannot personally participate in the purchase and sale of square meters. Then a power of attorney is issued for someone from the circle of acquaintances. And this document must have a notarized form. Without a notary's certificate, registration of real estate transactions by power of attorney is prohibited - Rosreestr will not accept the package of documents.

Price

UPTH is a legal technical work approved by the Moscow City Notary Chamber.

The apartment is sold or transferred under a rental agreement

A rental agreement is an agreement in which the owner gives away a home for a small lump sum, monthly payments, a lifetime dependency, or simply care for himself. Older people usually take this step. They sign an agreement that the apartment will go to whoever pays them money or takes care of them after their death. Previously, you won’t be able to take your home; a burden will be placed on it.

The rent agreement is registered with a notary. Moreover, the owner of the apartment must appear at the notary office himself to confirm that he is voluntarily ready to sign the papers.

Competent loan processing

As a rule, when receiving borrowed funds, the debtor writes a receipt for their receipt, which indicates the amount and period of repayment. The lender (the person who lent the money) is often confident that this is enough to confirm his rights. Indeed, a receipt is a document that can be presented to the court if it contains all the necessary information to establish the existence of a debt.

Unfortunately, the receipt often forgets to indicate other essential conditions: the interest rate on the loan, the frequency of repayment if the debt is to be paid in installments, passport details and place of residence of the borrower. If he violates the agreement and payment terms, the creditor has the right to go to court.

Moscow notary Kolganov I.V. comments:

“This is a troublesome procedure that takes a lot of effort and time. If you certify the loan agreement with a notary, the debt collection procedure is significantly simplified.”

Mortgage funds are involved in the transaction

A notary is required for investigations involving a mortgage only if shared ownership is involved. This can happen in several cases:

• You have decided to refinance your mortgage loan , and for this you need to draw up a separate mortgage agreement. It will have to be endorsed by a notary if the apartment is shared ownership (for example, divided between family members).
• You want to take out a mortgage loan, but they require collateral. You can mortgage your existing housing. And if this home has several owners, then the mortgage agreement is sent to a notary.
• You are going to buy out the last share in your apartment and become its sole owner. There is no free money, you will have to take out a mortgage. In this case, the entire apartment will need to be pledged. The subject of the purchase and sale is a share, therefore the mortgage agreement requires notarization.

Features of a notary's deposit in real estate transactions

The method of payment for the purchase of real estate largely depends on which market the transaction takes place: primary or secondary. In the case of the primary market, the client works directly with the development company, transferring money to its current account. These transactions are safe and there are no problems for either party.

Loan “State support for families with children” SberBank, Individuals. No. 1481

from 0.1%

per annum

up to 12 million

up to 30 years old

Get a loan

As for the secondary real estate market, there are often cases of fraud and financial fraud, because settlements occur between two individuals. That is why, when it comes to secondary housing, there are three main and safe ways to transfer money:

• using a safe deposit box: the buyer draws up a deposit in his name and gives the seller access to it after the final sale of the apartment and the completion of the transaction;
• transfer of funds through a letter of credit: the buyer asks the bank to act as an intermediary, and after the seller provides the relevant documents, transfer him the agreed amount of money;
• registration of the transaction and transfer of money through a deposit with a notary.

The first two methods are reliable, but quite labor-intensive for both the seller and the client: they require the preparation and signing of a large number of papers. The cost of such services is also quite high. This is why the third method has recently gained popularity, including because when making a deposit with a notary, the cost of the service is significantly lower than for a locker or letter of credit (only 1,500 rubles).

Preferential mortgage Gazprombank, Persons. No. 354

from 5.99%

per annum

up to 3 million

up to 30 years old

Get a loan

To settle a transaction in this way, the parties must first agree on the following basic points:

• payment for real estate will be made through the transfer of money from the buyer to the seller using a notary deposit;
• the buyer must deposit the full amount sufficient to pay for the transaction;
• the seller will be able to withdraw the amount from the deposit when the transaction is closed and the ownership of the property is notarized;
• The buyer can return funds from the deposit only with the consent of the seller, or if the ownership rights have not been re-registered within the allotted period.

Features of calculation and payment of interest

The lender and the borrower agree on the presence (absence) of interest for the use of money (things) at their own discretion. In this case, the provisions of the law must be taken into account.

1. If the amount does not reach 100 thousand rubles, and the agreement does not indicate interest, the loan is considered interest-free;
2. If the loan size exceeds the above limit, the general rule applies: the rate (or lack thereof) is directly specified in the contract, otherwise the calculation is made at the Central Bank rate (5.5% as of July 2020);
3. Interest can be paid in any order under the agreement: monthly, along with the payment of part of the debt, or at the end of the contract;
4. If the debt is paid in installments, the creditor has the right to demand early repayment of the entire amount if the partial installment is not paid within the agreed period;
5. With an interest-free loan, the borrower has the right to repay the entire amount ahead of schedule;
6. The amount of interest received by the creditor is a financial benefit. Income tax is calculated and paid from it.

If the parties decide to draw up a loan agreement with a notary, they will be explained all the provisions of the law and warned of the consequences of failure to fulfill the agreement. If a legal dispute arises, a notarized agreement is the main evidence in court, and the fact of the loan does not require additional confirmation (proof).

In the case where the notarial loan agreement does not include provisions on liability for late payment, the default rule applies: penalties are charged on the overdue amount for the period from the established payment date to the date of actual repayment. Interest corresponds to the key rate of the Central Bank for the calculation period.

Penalties (fine) are not collected if the agreement establishes a penalty for delay in debt payment, unless otherwise provided by law or agreement (Articles 395, 811 of the Civil Code of the Russian Federation).

Providing services in a one-stop shop format

There is nothing more tedious than collecting a lot of valuable papers from different authorities. All notaries in Russia work on a one-stop-shop principle, so applicants do not have to independently collect the information and documents necessary for the transaction. The notary himself requests all the data and receives it as quickly as possible thanks to the established digital cooperation between the notary and a number of departments and services (Federal Tax Service, Rosreestr, Ministry of Internal Affairs, Central Bank of the Russian Federation, Unified State Registry Office, etc.). The notary today is a full partner of e-government, and anyone can use the conveniences and advantages of this partnership.

Guarantee of the legality of the transaction

Failure by one of the parties to a transaction to understand its legal consequences is something that scammers often take advantage of. A person may inattentively read a significant clause of the contract, the other party may mislead him or even put pressure on him.

Notaries carefully explain to all participants in the transaction its terms, talk about the rights and obligations of the parties and make sure that they understand all the legal consequences of the concluded agreement. In legal language, this is called checking the compliance of the will and expression of the parties. It allows clients to be confident that the transaction is secure and that no one will be able to challenge it in the future. Even if one of the parties claims that she was misled or acted under duress and did not understand her actions, such schemes are often found in the arsenal of scammers.

How to draw up a loan agreement through a notary

The form of agreement between the lender and the borrower provides for the inclusion of the following main provisions:

1. description of the item (amount of money, things, items);
2. deadlines for fulfilling obligations (schedule for installment plans);
3. procedure for calculating and paying interest (if provided);
4. rules for resolving conflict situations;
5. liability of the parties for violation of the contract;
6. identification data of the parties.

In practice, private loans against a notary receipt are the most common, but there can be many options. Often contracts include a collateral clause, then in addition to the main document, a collateral agreement is drawn up.

If real estate is used as collateral, the loan agreement must be notarized - this is a legal requirement.

The text of the agreement must indicate which party actually has the collateral. The second case, also often encountered in practice, is a notarized loan between the founders and the management of the LLC. As a rule, an interest-free agreement is drawn up, which must be expressly stated in the document.

Guarantee of respect for the rights of third parties

Often, as a result of a transaction, persons who seem to have nothing to do with it may suffer, but from a legal point of view they are the same owners of the alienated property as the seller stated in the contract. Such “hidden” (and often even intentionally) persons entitled to housing can be spouses and ex-spouses, minor children, suddenly discovered heirs, co-owners with the right of first refusal to purchase a share, etc. The notary will carefully check the title documents and family the position of the parties, and will also determine the full range of persons who have the right to use the alienated real estate and/or reside in it.

Drawing up a contract in digital format without requiring a personal digital signature

In the near future, it will be possible to draw up a legally significant document digitally as quickly, simply and without extra costs. Notaries will help with this: the law has already endowed them with the necessary powers. When the norm is put into practice, clients of notary offices will not even have to spend money on purchasing a personal digital signature (electronic digital signature) - they will just need to leave their signature on a special tablet in the notary’s office. A notarization with an enhanced qualified electronic signature will give legal force to an agreement in digital format. Every notary has it.

Damage Guarantee

Each notary is responsible for the result of his actions not only with a license and reputation - he also bears full property liability. If a notary made a professional mistake (for example, missed some important stage when completing a transaction, made a typo in the text of the agreement, etc.), due to which one of the parties suffered damage, it will be compensated in full, regardless of the amount of losses. This is possible thanks to a multi-stage system of professional liability insurance for notaries.