Everyone wants to get their own housing, but today its cost is quite high, so not everyone can afford such a purchase. One way out of this situation is shared construction. It allows you to invest money in the construction of any property, and upon completion of work to obtain living space. But here it is important to understand that shared construction has many nuances that should be taken into account, since this method of acquiring real estate is one of the most risky.
What is an interest holder. Definition
So, the conversation about shared construction and its features should begin with the definition of who are equity holders. This term refers to a person who participates in the shared construction of any residential property and receives the right to purchase an apartment in a future house at a reduced price.
The formation of a share of equity holders begins at the stage of erecting the foundation for the future structure. In some cases, you can join the construction at a later stage, but in this case, the discount on the purchase of housing will be less.
Benefits of shared construction
Feedback from equity holders about this type of construction is rather contradictory, but its advantages are quite obvious:
- a significant discount on the purchase of housing after completion of construction;
- a good way to invest money in real estate, having in your hands a relatively small amount of capital;
- the possibility of buying an apartment in installments, in which payments are made during the construction process.
Thus, if you do not have money to buy your own housing, then participation in shared construction will be a good solution.
Who is a party to the contract: rights and obligations
When participating in shared construction, an agreement is necessarily concluded between the unit owners and the construction company. According to this agreement, equity holders are obliged to make payments on time if the living space is acquired by installments, as well as fulfill other obligations prescribed in the document. The developer, in turn, is obliged to complete the construction of the facility and put it into operation on the agreed date.
The relationship between equity holders and developers is regulated by law at the federal level. In 2004, a number of amendments and improvements were made to it, thanks to which participation in shared construction became more secure. The reason for this was a series of high-profile scandals, when the rights of equity holders were violated.
What is DDU
So, we have already decided who the interest holders are, so now it's time to understand a little about the terminology of shared construction. The most common term encountered by equity holders is DDU. This is an agreement of shared construction (participation), which is concluded between the developer and the shareholders. It provides a guarantee that the rights of both parties will not be violated. Failure to comply with any conditions may be grounds for litigation. As practice shows, in the vast majority of disputes between equity holders and developers, they are resolved in favor of the former, but solving problems in a judicial proceeding can take several years.
The essence of shared construction
Comprehensive information on this type of construction can be obtained in the law “On shared construction”, on the basis of which an agreement must be concluded between equity holders and developers, requiring the former to make timely payments, and the latter to complete the construction of the residential facility on time.
When the house is finished, each shareholder gets an apartment in his property. The housing parameters are also prescribed in the contract, so the owner of the shared construction share will receive the apartment that he originally wanted.
Rights of participants in shared construction
We already know who equity holders are, so now we need to talk about what legal rights they have. The rights and obligations of both parties involved in shared construction are specified in the DDU. Any non-compliance with a contract by one of the parties gives another reason for going to court.
As practice shows, the causes of most conflict situations are as follows:
- if the shareholder has documents in his hands that provide him with the right of ownership of the real estate, the fact of delivery of the object is not recorded anywhere;
- if the developer does not have time to deliver the object on time;
- the quality of housing does not match the information specified in the contract;
- termination of the contract through the fault of any of the parties.
In the event of any conflict situation with shared construction, equity holders can apply for consumer protection, where they will be provided with detailed information about the current situation, as well as suggest how best to proceed.
Pledge agreement: what is it and why is it needed
If you purchase housing by installments, then in addition to the DDU you will have to conclude a pledge agreement. This is a requirement of the current legislation and allows you to protect the rights of equity holders and developers. The document is prepared in electronic form, signed by both parties, and then sent to state registration. For this, the document must be drawn up at the construction site and notarized.
When sending the contract for state registration, a package of the following documents is attached to it:
- A notarized copy of the DDU, its number and registration date.
- Design documentation for a construction project with an indication of its location.
- The original and a certified copy of the receipt of payment of the state duty.
- Copies of all documents indicated in the security agreement.
Any of the parties involved in the signing of the contract may submit documents for registration.
How to become a participant in shared construction
Interest holders of a house or any other residential property to take part in shared construction must perform the following actions:
- the construction company determines the location of the future building and acquires land for construction;
- equity holders are looking for projects for which shareholders are involved, and conclude an agreement with the developer for equity participation;
- if housing is purchased in installments, a schedule of payments is drawn up, the amount of payment and the nature of payments are determined;
- a construction company builds a house and transfers it to the ownership of equity holders.
This is a standard procedure that an apartment shareholder must go through to acquire their own housing with shared construction.
Monitoring and oversight of transaction transparency
Today, the protection of interest holders, namely their rights, is at a very high level. If just a few years ago shared construction was a rather risky business, today you can invest in it without any fear of losing your financial resources.
Shared construction facilities are under the supervision of regional and municipal representations, so the legitimacy of any transaction will be respected.
What to do to deceived equity holders
Despite the tough regulation of shared construction by the state, nevertheless deceived equity holders are far from rare. This is due to the fact that unscrupulous developers can freeze the construction of the object or not start it at all, while taking the money from the interest holders per square meter.
Signs of violation of interest holders
There is a separate register of defrauded equity holders, in which all complaints regarding violations of the rights of shareholders are recorded.
There can be quite a lot of reasons for conflict situations, however the most common are:
- loss by the construction company of the right to own the land on which the house is being built;
- liquidation or bankruptcy of a construction company;
- a delay in the transfer of living space to its rightful owner for more than 9 months;
- the developer does not get in touch, avoids meeting in every possible way or does not allow the shareholder to the construction site.
It is important to understand that, when concluding a contract with the developer for participation in shared construction, the shareholder has every right to control the progress of work on building a house at all stages. If for some reason he is denied this, then this is a gross violation of his legal rights.
If the shareholder has even the slightest suspicion that the construction company is not fulfilling its obligations, then you should try to clarify the situation as soon as possible.
Conflict Resolution Procedure
If there is a conflict between the interest holders (St. Petersburg or another city) and the developer, then to solve it you need to take the following actions:
- Contact a construction company. For this, a written claim is drawn up and sent to the address at which the company is registered. According to the law, the developer is obliged to give a written response stating the reason for the interruption or freezing of the construction.
- If there is no answer or if you suspect that the company is a fraudster, you should contact the relevant authorities that oversee the shared construction and the court.
If the developer filed for bankruptcy, then you need to find official information confirming this. The verified source is the Kommersant newspaper and the unified state register. If official bankruptcy data is not found, then you need to go to court.
In order to bring the case to trial, you will need to prepare a package of the following documents:
- A certified copy or original of the DDU.
- Passport of a citizen of the Russian Federation.
- A document on the transfer of money to the developer.
If the court acquits the developer, then you can solve the problem with the help of the arbitration court. For this, a court decision must be attached to the documents listed above.
Consideration of applications from equity holders about the failure of the developer to fulfill its obligations takes 20 days, after which the complaint is entered into a single register. There are times when equity holders are denied registration of complaints. In this case, you need to seek the advice of a lawyer specializing in this matter.
As practice shows, shared construction is an excellent option for people who do not immediately have the full amount to purchase housing. But be that as it may, before signing the contract, you must thoroughly familiarize yourself with it, as well as find out who the interest holders are in order not to get into an unpleasant situation in the future.