Currently, in the real estate market, a large number of construction contracting companies offer to purchase housing in new buildings. Firms of this kind are interested in constantly attracting reliable investors. At the same time, developers guarantee an acceptable cost of housing. However, no one is safe from force majeure circumstances. You can protect yourself from such situations as much as possible by signing an agreement on shared construction.
The legislative framework
All legal and financial aspects of relations relating to shared construction are provided for in federal law. In particular, the main legislative act regulating participation in such an enterprise is Law No. 214-FZ. The document provides for the prescription of basic norms and rules in the shared construction industry. It is important that this regulatory document is relevant only for real estate issued in the period after its adoption. Buildings commissioned before April 1, 2005 are subject to previously applicable standards.
What should an agreement on participation in shared housing construction contain?
In a legally competently drawn up contract, not only the object of real estate is indicated, but also the duties and rights of each of its parties - the builder and the shareholder. The investor can accept the property only with a documentary permission to operate the entire house, which the developer is required to obtain. Participation in shared construction involves the designation of the exact terms of the transfer of real estate in the contract, as well as all financial aspects - the price and the calculation procedure. In addition, a mandatory point is to prescribe the conditions under which the developer is not responsible for the marriage in production. Please note that housing has a five-year warranty period from the date of transfer to its member.
Developer Responsibilities
Based on the main provisions of the relevant legislation, the developer must erect the property (not only an apartment building, as well as a shopping center, clinic and, possibly, not only in a single copy) are allowed within the time period specified by the contract.
In addition, he (the developer) must obtain permission for the further operation of the property. Subject to the fulfillment of all the above actions, the building must be transferred to the interest holder. Participation in shared construction provides for equal conditions for each investor.
Member Responsibilities
In order to legally obtain ownership rights to housing, the shareholder agrees to pay the developer money on time and in the form that is prescribed in the contract. Moreover, commissioning takes place only after obtaining permission from the state commission.
According to the Law on State Registration (Article 25.1), participation in shared construction involves the execution of a contract in writing. In addition, the DDU is subject to mandatory registration in the Unified Register, after which it is considered legitimate.
Participation in shared construction is the most reliable way to acquire housing. Remember that a well-written contract is the key to your financial security. Based on the current legislation, both the land plot and the building constructed on it are the property of interest holders. In the event of a bankruptcy of the construction company, its financial insolvency or for several other reasons, the property will be auctioned. The proceeds, in accordance with the agreement, are distributed among investors.
