Many people use other people's property on the basis of a lease. The room can be residential or non-residential. The contract may be concluded between individuals or companies. It is the agreement that governs the relationship between the two parties. Often used lease with the right to buy real estate, allowing the tenant to purchase premises after the contract expires.
The concept
A lease with the right to purchase real estate is represented by the relationship between the two parties to the transaction regarding the property. A special contract is drawn up between the owner of the premises and the tenant. It includes not only the most important conditions, but also information about the possibility of repurchasing the subject of the transaction.
Typically, the contract indicates that the tenant can redeem the property only after a specified period. The process is carried out on the basis of the conditions of Art. 624 Civil Code. For this, the tenant in the process of using the premises must not in any way violate the requirements and conditions of the contract.
Differences from Leasing
Real estate leasing is often compared to leasing. There are certain differences between these transactions:
- during leasing there are no restrictions on the choice of rental housing, therefore, the tenant selects the object, after which the lessor buys it from the owner and provides for a financial lease, and for standard leases, the property owned by the person is made out, therefore the choice of the object is limited;
- three parties participate in leasing, and when renting, a contract is directly formed between two participants;
- during the drawing up of the leasing agreement, it is possible for the client to redeem the property, and with a lease contract this is possible only if there is an appropriate clause.
Many people and companies are interested in leasing with the right to buy commercial property. Under such conditions, entrepreneurs can check whether the selected location is convenient for work and customers. If the activity is effective, then a decision is made on the redemption of the object.
Benefits
Using a lease with the right to buy real estate has many advantages for a tenant:
- buying an apartment without using borrowed funds;
- real estate is used until the final redemption;
- You can cancel the transaction at any time;
- it is not required to collect a lot of documents for signing the contract;
- there are no additional costs related to housing, as insurance is not issued and assessment is not carried out;
- no down payment required.
The advantages for the lessor include:
- You can sell an existing property at a high price;
- the property belongs to the owner until the final redemption;
- It is permitted to terminate the contract at any time.
Typically, leases with the right to buy real estate are used by lessors who want to sell their property, but they cannot perform this process promptly due to the high cost of the property or other factors.
disadvantages
Such an agreement has some negative aspects for the tenant:
- Prior to the final repurchase, the property is registered with another participant in the transaction, which may completely dispose of it;
- the owner of the object can terminate the transaction at any time without returning rental payments;
- if the landlord dies, you will have to draw up a new agreement on less favorable conditions with his heirs.
At the same time, the landlord cannot use the premises for any purpose, and also over a long period of time, the price of real estate may increase, which will lead to loss of profit.
What documents are required?
The most frequently offered in Moscow are rents with the right to buy real estate. This is due to the fact that real estate is expensive in the capital, so it is difficult to sell it in a standard way. To conclude a transaction, the following documents are prepared:
- passports of the parties to the transaction, and if one of the parties is a company, then a certificate of registration and registration with the Federal Tax Service is used;
- extract from the house book, with which you can find out who is registered in real estate;
- certificate of ownership of the object or extract from the USRN, including information about the owners of the apartment;
- direct lease, in which there is a clause on the possibility of redemption of real estate;
- a payment schedule containing information on when exactly the payments by the tenant should be transferred.
Additionally, an acceptance certificate is usually drawn up. It contains information about all household items available on the premises, as well as the date when the tenant began to use the property.
Nuances of contract registration
If a lease with the right to buy real estate is drawn up, then its duration usually reaches 10 or 15 years. If the agreement term exceeds 1 year, then it is registered in the Federal Register. For this, documents are prepared:
- passports of participants;
- application for registration;
- one copy of the lease;
- duty receipt;
- technical passport and real estate plan.
You can apply not only to the Rosreestr branch, but also to the MFC.
The nuances of cooperation
Regardless of whether a lease with the right to buy real estate is made out in Nizhny Novgorod, or in another city, certain requirements of the law are taken into account. The process of drafting the contract is regulated by federal regulations, therefore, the participants in the transaction take into account the features:
- buyback is only the right of the tenant, and not his duty, therefore, to force him through the court to perform this process is impossible;
- after paying the entire amount due to the lessor, registration of the transfer of the right to an apartment to the tenant is required;
- even ordinary hiring can be retrained for lease with the right to purchase, which is provided for in Art. 624 Civil Code, therefore, it is enough to only draw up an additional agreement between the two parties.
It is advisable to use this method of rent only on the condition that there is a trusting relationship between the two participants, and also the demand for real estate is considered low.
Tenant Risks
When making a lease with the right to buy real estate, the tenant has to face serious risks:
- the death of the landlord may lead to the termination of the contract or the introduction of additional unpleasant conditions by the heirs;
- the owner of the property can use real estate as collateral when applying for various loans;
- changes in the real estate market may lead to the redemption price of the property being too high, although under such conditions it is always possible to refuse to redeem it, but rental payments are not returned by the property owner.
Therefore, although such an offer has many advantages, it is important to take into account the risks arising from the tenant.
Rules for drawing up a contract
The lease agreement with the right to purchase must contain certain. These include:
- information about the parties to the transaction (must be indicated by F. I. O., information from passports, date of birth and place of registration are entered);
- the subject of the agreement, which is the property, therefore, its address, area and other characteristics are indicated that are copied from official documents to the apartment;
- the term of the contract, and often for redemption an unlimited agreement is drawn up;
- the size of the monthly payment, for which the rent and the purchase price of the property are taken into account;
- frequency of payment;
- a method of transferring funds, for which money can be transferred in person, transferred to a bank account or transferred based on a bank cell;
- obligations arising from the lessee and the lessor;
- liability of the parties for violation of the terms of the transaction.
It is important to correctly approach the drafting of this agreement so that there is a legal lease with the right to buy real estate. A sample contract can be studied below.
Is an apartment appraisal required?
If housing is transferred for long-term use, it is likely that its price will change significantly. The parties must agree on whether such changes will affect the redemption amount, after which a decision is made to the agreement.
Often selected by the parties recalculation taking into account changes in prices on the real estate market or calculation using foreign currency. In order to avoid disagreements in the future, it is advisable to indicate in the contract the final price of the object and the formula for calculating the indicator. For this, the parties turn to an independent appraiser. He compiles a report containing information on the market price of the object at the time of drawing up the agreement.
How do the rights to an object pass?
The most often offered in Moscow and the Moscow region lease with the right to purchase real estate. With this offer, anyone can become the owner of a liquid and profitable property with a good location. In this case, it is important to know how the transfer of rights to the apartment to the tenant is carried out. Several options can be used for this:
- expiration of the contract;
- full transfer of the value of the object to the owner.
By all means, the process is registered in Rosreestr, after which the tenant becomes the full owner of the object.
Specificity of Early Termination
According to Art. 619 of the Civil Code, relations between the two parties are terminated by a court decision under the following conditions:
- the tenant in the process of using the object violates the terms of the contract;
- the premises are used for other purposes;
- deteriorating housing due to poor care by the user;
- within the established period the rent is not transferred;
- the overhaul provided for by the contract is not performed.
The parties to the agreement may provide for other conditions of early termination in the contract.
Conclusion
Lease with option to purchase is considered a demanded transaction in many regions. It has advantages for both participants. According to a correctly drawn up agreement, upon termination of cooperation, housing passes into the ownership of the tenant.
Particular attention will have to be paid to the proper drafting of the contract, so that it contains important information about cooperation. If its validity period exceeds 1 year, then it is registered with the Rosreestr.