How to register shares when buying an apartment

How are shares in an apartment divided?

There are three main types of property:

1. Individual ownership (only one owner);
2. Shared (several owners with a clearly defined part of the property);
3. Joint (several owners of common property that is not divided into shares).

Shared privatization is the ownership and use of residential property by agreement of all privatization participants. If it is not possible to allocate a share, the owner may be paid a sum of money equal to the value of the part of the property.

If all privatization participants jointly decided to distribute shares independently, then such division of property must be formalized by an appropriate agreement, which requires notarization.

In cases where the participants in privatization cannot independently agree on the division of property, and equal shared ownership also does not suit them, the court has the authority to resolve such a dispute.

If one of the privatization participants decides to give up his part, then it is divided equally among the remaining applicants.

How to allocate a share in an apartment

The allocation of a share is possible on a voluntary basis. This implies the voluntary execution of the contract by the parties. The main condition is that it is impossible to leave a participant without a share in principle. Allocation in equal or unequal shares is allowed. There is no need for notarized confirmation of such an agreement; however, registration with Rosreestr is required to enter into legal force. When concluding a marriage contract, a separate document is not drawn up; the allocation of a share is secured in a separate clause and is also registered.

If voluntary allocation is impossible, then the decision on distribution is made in court. In this case, it is possible to allocate a share in kind or assign equivalent monetary compensation. The plaintiff is required to prepare a statement of claim, technical documentation and documents confirming the right to own the property. Additionally, the court may order a construction and technical examination.

How to allocate a share in a privatized apartment

The allocation of a share in a privatized apartment can occur in kind or as a percentage. Each participant in privatization has the right to his part of the real estate.

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To allocate a share in kind, you need to apply to the court with the necessary documents for the apartment itself. They will be able to divide an apartment in kind only if each owner gets a full-fledged isolated room of such an apartment. For this purpose, the court creates a specialized commission, which determines on the spot whether the allocation of a share is possible or not. Subsequently, based on the commission’s decision, the court makes its reasoned decision.

If the apartment is small in size and it is simply impossible for each owner to be allocated a separate isolated room, then allocating a share in kind is impossible. In such a situation, the court will calculate and award part of the property as a percentage.

Allocation in kind is more applicable to one-story private houses, since for an isolated room the law requires a separate entrance.

It is better for persons who live in apartments in a multi-storey building to determine the procedure for using the apartment or to sell their share.

This document clearly defines what specific part of the real estate and its size will belong to a specific person after registration of such a document.

The content of the agreement begins with the date and place of drawing up the agreement, and also indicates:

• details of the parties (passport details, registration addresses);
• type of property (apartment, house);
• its location (address, entrance, floor);
• full technical characteristics of the property (number of rooms, square footage);
• information about what share of the property will belong to each person;
• other information (when the document comes into force, number of copies, etc.);
• signatures of the parties.

To draw it up correctly, it is better to contact a qualified notary who will help take into account all the nuances and also certify the document.

Is it possible to allocate a share in a privatized apartment?

A share in a privatized apartment is a certain abstract value that is not determined in a specific object, for example, a certain room or part of it. This is just part of the right to own a residential property on an equal basis with its other owners in certain equal or unequal shares. Owning a share of a residential premises does not mean owning this premises or any separate room of it, it simply means that all co-owners of the apartment have the same rights to use it.

Initially, privatization implies common shared or joint ownership of an apartment, with the exception of situations where all family members renounce their share in favor of one, for example, a child. In this case, everyone who refused to obtain ownership of housing receives the right to lifelong use of the residential premises, and the one in whose favor family members refused privatization receives the status of the sole owner of the apartment.

Let's consider a situation where there were no refusals from privatization, and each family member has the right of ownership to part of the residential premises.

In this case, the allocation of a share in kind occurs similarly to the same procedure in relation to a private house, but the process of allocating part of a residential premises in kind is much more difficult and is not always possible. This is due to the fact that the physical allocation of a share involves equipping it with a separate entrance, carrying out redevelopment, and equipping it with independent communications, which is hardly possible or is very difficult in an apartment building.

If it is necessary to allocate a share not in kind, but “on paper”, for example, a father wants to give his son part of his property, then he draws up a deed of gift for him, in which he allocates to the child that part of his property that he considers necessary. In this case, the consent of other co-owners is not required.

All co-owners of the residential premises, in accordance with clause 2 of Art. 252 of the Civil Code of the Russian Federation, also has the right to allocate his share in the apartment in kind, and if this is not possible, then receive monetary compensation for it from other owners, commensurate with the part of the property that he owns.

For example, three brothers owned a two-room apartment in equal shares. The older brother decided to change his place of residence and move to another city, where he intended to buy himself a room in a dorm, or take out an apartment on a mortgage.

He invited two other brothers to buy out his share, they agreed. The brothers drew up an agreement to pay monetary compensation to the older brother for one-third of the living space and to redistribute his share between the other two.

Refusal of a share when privatizing an apartment

There are two main ways to refuse a share when privatizing an apartment:

1. Using a gift agreement;
2. Non-participation in privatization.

One of the most common ways to give up your share is to give it to other participants. To complete such a procedure, the consent of the person to whom the donated part of the property will be transferred is required, i.e. donee, while consent from other homeowners is not required.

The share donation agreement itself must be drawn up in writing, which must

certified by a notary

(

clause 1 art. 42

Federal Law of July 13, 2015 No. 218-FZ

“On state registration of real estate”

).

After completing the donation agreement and paying the state fee, the transfer of rights should be registered in Rosreestr. If the donor was married at the time of acquisition of property rights, it is necessary to present a notarized consent of the spouse.

You can give up part of your home ownership even at the stage of preparation for privatization. To do this, the person must obtain consent to privatize the apartment without his participation. Such a document is certified by a notary and is included in the package of documents required for privatization.

It is worth noting that it is impossible to renounce your share in favor of a specific person who lives in the apartment. The share of the person who refused it will be distributed among all persons who participate in privatization. The share can be changed only on the basis of an agreement on the determination of shares.

Registration may be refused if one of the owners does not meet the conditions necessary to carry out the registration procedure. These include:

• non-payment of tax;
• lack of documents;
• an incorrectly drawn up application or paper;

• 
  lack of consent of the spouse or owner;

• lack of response to the sent request due to the irrelevance of the provided papers;
• forgery of documents.

How to divide shares in an already privatized apartment

The allocation of part of the real estate is carried out in kind or in cash equivalent. Difficulties arise when the area is relatively small. It is impossible to allocate a separate living space in a two-room apartment when divided into five owners. Such problems are solved by determining the redemption value. In both cases, the agreement is confirmed by a written agreement.

How to get your share in a privatized apartment using court proceedings can be found out at the link above. When filing an application, the amount of the fee is determined by the current tariff schedule (0.5-4% of the claim amount). In difficult situations, decisions take several months. Without wasting extra time, the division of property is carried out in favor of minor children and spouses. The final step is registration with Rosreestr.

Reasons for the exchange

There are a number of reasons for exchanging privatized housing. Someone wants to improve their living conditions, while others, on the contrary, by reducing the living space, can save on utility bills and also receive an additional payment from the transaction.

Someone is on the verge of divorce and does not want to share living space with their spouse, therefore, the issue of exchanging one large apartment for two smaller ones is being resolved. One way or another, there are many reasons for the exchange and the most important of them is the desire of the parties and owners to carry out this action.

You can find out how to exchange a room in a dorm or communal apartment, as well as a two-room or three-room apartment on our website.

Where to look for options?

How to properly exchange such living space? Where can I find suitable options? There are several ways to search for options.

If you are already fully committed to this procedure, we suggest that you familiarize yourself with the main methods of searching for a potential second party to the transaction.

If you want to save money and not pay for real estate services, you can try your luck in searching for options. Give appropriate advertisements about the search for an exchange option, look for relevant offers.

When you find offers for sale, offer the owners an exchange. In the absence of a ready-made database, much more time will be spent searching for the other side of the transaction, but money will be saved.

Contacting a real estate office is a guarantee of saving time and selecting several options.

Realtors need to pay a fee for their services, as a rule, this is a fixed fee or a percentage of the transaction. But considering that options are selected in a matter of days, this is not such a big expense.

How to sell a share in a privatized apartment

The second option is more likely to refer to the tricks of the seller. Some, in order to avoid hassle with a warning, draw up an exchange instead of a sales contract. It is categorically not recommended to do this: the rules regarding advantages will apply to me. This is due to the fact that the legislator proceeded from the desire to either preserve the circle of co-owners, or to help ensure that their circle gradually narrows. Therefore, even in the case of exchange, the stranger must first obtain the consent of the existing owners.

Methods

How to change a privatized apartment to a privatized one? How to do a related exchange? Is it possible to exchange privatized living space for privatized one through purchase and sale?

There are several ways to do this. As a rule, the use of both is due to the presence of a number of circumstances:

1. Purchase and sale. Sometimes citizens do not want to sign an exchange agreement. Some consider it unreliable, others expect an additional payment, but this clause is best described by the purchase and sale agreement. This is the reason for the use of this type of transaction.

Both parties draw up two purchase and sale agreements regarding each other and, if there are no claims, sign them. This is how this procedure occurs.

2. Mena. Exchange of property in ownership - this type of transaction is used when it comes to apartments of equal value. This document sets out the basic terms of the transaction. The agreement is signed by the parties and formalized in the relevant government agencies.

Sell ​​a share in an apartment

In a privatized apartment, it is just as possible to sell an existing share as in apartments received by inheritance, by court decision, by deed of gift, etc. Even if such a share is not allocated in kind. A completely different question is how will the buyer use the purchased share if it is not determined what to use? But there is a reasonable answer - the buyer buys such a share at approximately half the market price and plans his further actions himself. If it is a third party. If the buyer is a co-owner in the same privatized apartment and buys a share in order to own the entire apartment as private property (solely), the price for such a share may even be higher than the market price. Therefore, you can sell a share in a privatized apartment, but at what price you need to think seriously before offering it to your neighbors or putting it up for sale.

We recommend reading: Taxes when buying and selling an apartment

Where to start designing?

First, you need to notify all homeowners of your intention.

If the owners agree, it is necessary to obtain written consent from them.

Remove the encumbrance from the living space, that is, sign out the unauthorized occupants. Prepare your papers. After this, you can contact a real estate agency or independently begin searching for a buyer or person for the exchange.

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Once you have found a suitable option and the owner also agrees to your property, you need to choose a method for completing the transaction and fill out the document. It is best to carry out this action in the presence of a notary with appropriate certification.

In addition, your transaction number must be entered by the notary into the appropriate register. This will allow you to protect yourself from a legal point of view from unauthorized actions on the part of your opponent.

Required documents

This procedure requires a standard package, which is also used when registering a purchase and sale:

• owner passports;
• their marketing authorizations;
• ownership documents;
• technical specifications and documentation for living space;
• consent of the spouses to the exchange;
• documents from the BTI;
• an extract from the house register about the composition of residents;
• certificate of payment for all utilities and absence of debt;
• an agreement drawn up by the parties and certified by a notary.

All of the above papers are submitted to the branch of the Federal State Register Service.

The papers are carefully examined and checked for authenticity.

Rosreestr employees also make appropriate requests in order to check the feasibility of this transaction.

Only if the employees of the Federal State Register Service have no questions for you and your documents, the transaction can be formalized in the proper form, and the two parties will be issued agreements on ownership of the new property.

How to register a share in a privatized apartment

To obtain part of the privatized living space, the interested person must resort to the services of government agencies and carry out a number of preparatory actions. Read more about this and other related issues below.

Distribution of shares

The number of square meters issued is determined depending on the basis for receipt. More details about this are in the table.

The size of the share of living space transferred to the new owner by way of donation is determined solely by the donor.

Regarding the subject of sale and purchase, the number of square meters sold will depend on the agreement between the parties to the transaction.

At the same time, it is important to know: too small a share (relative to the remaining shares of the total property) cannot be used by the owner for its intended purpose, and, at the request of the copyright holders of larger parts of the property, it can even be sold to them without his consent.

Where to contact

To receive a share, applicants contact:

1. To the administration of the municipality or the housing stock at the location of the apartment - if the living space is not privatized.
2. To the notary at the place of opening of the inheritance (death of the owner of the share) - during inheritance.
3. To any notary office - to conclude a gift or sale agreement.

After approval of the basis for receiving a share, the copyright holder needs to visit the state real estate registration authority - the Rosreestr branch at the location of the apartment - to register the transfer of ownership of it.

Procedure and procedure

First, the recipient of the share must apply for registration of rights to it. During this stage:

• The heir submits an application to the notary to accept the inheritance.
• The tenant of social housing sends a request to the owner (municipal entity or others) to carry out privatization.
• The donor and the donee or the buyer and the seller conclude and notarize an agreement under which the share will be alienated.

After its successful completion, all rights holders will receive state registration as owners of part of the residential property.

The applicant* is required to:

1. Collect a list of required papers.
2. Appear at the local Rosreestr office or multifunctional center.
3. Write an application for registration (according to the sample provided) and submit it, along with a package of collected documentation, to an authorized employee.
4. Pay the state fee.
5. Come pick up your documents on the appointed day.

* - The new owner himself or his representative - a parent, guardian, trustee (instead of minors, incapacitated and partially capable citizens) or an authorized representative (on the basis of a notarized written authorization issued by the owner) has the right to apply for registration of a share of real estate.

If a transfer of ownership is registered on the basis of a gift or sale agreement, both parties to the transaction must submit a registration application.

From the position of the registration authority, the procedure will be as follows:

1. An authorized specialist accepts the documents received from the applicant and checks them for legality and authenticity.
2. The initiator of the application is provided with a sample for writing an application and details for paying the state fee.
3. The fact of payment of the state fee is established by Rosreestr employees; the applicant is not required to provide them with a receipt.
4. The accepted application and the list of required papers are processed by the registration authority within 5 days.
5. After the expiration of the mentioned period, a notification is sent to the owner (in the manner specified by him in the application), indicating the end of registration and the need to re-visit the branch to receive the transferred documents.

If desired, the owner of a share in a privatized apartment can receive a title document at any time after registration - a certificate from the Unified State Register of Real Estate (USRN).

Required documents

To receive and register a share of a privatized apartment you may need:

1. Social rental/privatization/donation/purchase agreement.
2. Death certificate of the owner.
3. A will or document confirming the right to inheritance by law.
4. Certificate of right to inheritance.
5. Extract from the Unified State Register of Property Rights of the former owner.
6. Certificate of absence of registration at another address.

Price

Registration of a share of privatized living space will cost 2,000 rubles. Their applicant will have to pay for the services of Rosreestr.

The new owner also pays:

• 13% of the value of the share received as a gift, if the donor is not a close relative;
• 0.3 – 0.6% of the value of the property when receiving it as an inheritance;
• the price specified in the purchase and sale agreement.

When applying to a notary, in addition to the state fee, the applicant will need to pay for legal and technical services, the tariffs for which are approved by the notary chamber of the subject at the beginning of each reporting year (you can find out the prices on the official portals of the departments).

How to get a share in a privatized apartment? This question is quite general, and it will not be possible to reveal all the nuances of the process in one article. To obtain more specific missing information, you can contact the lawyers of our portal. They will help clarify your problem and, if necessary, develop an individual action plan. You can ask a question of interest for free, at any time convenient for you - over the phone or online.

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Author of the article

Natalya Fomicheva

Website expert lawyer. 10 years of experience. Inheritance matters. Family disputes. Housing and land law.

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Timing and cost

The standard time frame for processing such a transaction at the Federal State Register Service is seven working days. However, if we are talking about a transaction between two cities or even regions, or it is complicated by certain factors, the time can be extended to one month.

The service of registering property rights does not require payment of a state fee, but requires payment of the appropriate tax according to the details of the state budget. For citizens permanently residing in our country, the amount will be 13 percent, for foreigners – 20 percent.

The tax payment document must be provided along with other documents when submitting to the Federal Registration State Service.